Tribunal orders modular builder to pay for sub-zero home failures
An ACT tribunal awarded $17,754 compensation after a modular home failed to maintain warmth in -8°C temperatures.
Pamela Andrew contracted to buy a modular home in 2022, which was installed in 2024. The home failed on two mornings in June and August last year when she woke to find ice on the inside walls after overnight temperatures fell to -8°C.
Andrew sued the NSW-based supplier, AJC Portable, claiming the home was unfit for Canberra's climate and did not meet the required 6-star energy rating. The tribunal found a reasonable business would build homes to meet ACT approval standards, not fail them.
AJC later redesigned its homes to meet a new 7-star standard, proving the upgrades were possible. The tribunal ordered the company to pay for improvements that would lift the home's rating to 6 stars.
- $17,754
- Compensation awarded
- -8°C
- Temperature recorded
- NSW-based AJC Portable
- Supplier location
Why it mattersThe ruling forces modular home builders to guarantee their products work in Australian climates, protecting buyers from costly failures.
AustraliaACT residents buying modular homes now have stronger legal protection. The precedent may influence standards across other Australian states.
✓ Claims checked against the source. checked 17 h ago
