Builder Insolvency

Information Regarding your Build

Unfortunately, when your builder is placed into liquidation or has gone missing you are left in a situation where you have a partially completed home. This is a very much an unwanted dilemma that needs to be dealt with as quickly and as patiently as possible.

We understand the stress and uncertainty this can cause, and we are here to help you through these uncertain times.

The process that you will need to undertake once you have been officially notified of the liquidation or you are confident that your builder is no longer in operation will be to contact the VMIA. The VMIA is the Warranty Insurer underwriter who provides you with some protection in cases such as yours. This is called DBI insurance (Domestic Building Insurance) which is compulsory under a major domestic building contract.

You would have been issued a DBI policy underwritten by VMIA when you entered in to your building contract with your builder, this is designed to give you some protection and help recover some of your finances.

For more information and to start your claim application head over to  the VMIA website or give them a call on the below number.

Phone: 1300 363 424

What to Do Next ?

The VMIA requires you to minimise any further potential loss to your property, the following wording within the policy documents state -

If your property is at frame stage or is suffering water entry, you have a legal obligation to minimise your loss – try to protect your home while it is out in the elements or minimise any damage internally due to water entry or theft.

These Are The Following Steps You Need to Undertake Immediately

1- Remove all of the builder’s signage - consider putting up a sign with your own contact details on it.

2- Contact the temporary fencing company whose sign should be on the fencing and talk to them about taking over the rental on the fencing while it’s still in place. Check to ensure all fencing panels are correctly installed and connected to each other.

3- Remove the builder padlock from the gate and install your own as a deterrent to any site theft.

4- Cut down all overgrown weeds & remove as much rubbish so that the site doesn’t look abandoned.

5- If safe to do so, install wetherproofing to your home if you do not have a complete roof or the home is not weather tight. contact somone like STORMSEAL Who specialize in temporary weatherproofing. Keep your receipt as you can claim this as part of the insurance claim.

How Can We Help?

We are Registered Building Practitioners in our own right with the Victorian Building Authority. We can carry out a full incomplete & defective works inspection of your current stage and provide a comprehensive inspection report to assist you with your claim and negotiations. 

You need to be mindful that while your DBI policy is capped at 20% of your original contract price for incomplete works, a little less understood side of your DBI policy is that you are also covered for any Structural and Non-Structural Defective works that exist in your new home at the time of your builder going into liquidation or going missing, to a collective combined cap of $300K with your Incomplete works claim. 

By properly separating Defective works from Incomplete works allows you to negotiate your claim (capped at the combined $300k) with the VMIA in a fully enlightened manner to the maximum benefit allowable under your DBI policy. Any reasonable “Consultant Report fee” incurred by you in making a successful claim under your DBI policy are covered by that policy.

Get in contact with us today so we can provide you with the necessary inspection & report to maximise your claim.