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Porter Davis customers may lose deposits and after home builder’s collapse Porter Davis customers may lose deposits after home builder’s collapse
(33 minutes later)
Clients who paid a deposit but didn’t have insurance have lost their money, liquidators revealed in packed webinarClients who paid a deposit but didn’t have insurance have lost their money, liquidators revealed in packed webinar
Property owners caught up in the collapse of Porter Davis may lose their deposits as plans for their homes are held hostage.Property owners caught up in the collapse of Porter Davis may lose their deposits as plans for their homes are held hostage.
Liquidators Grant Thornton on Tuesday hosted a webinar for Porter Davis customers. The meeting immediately ran into trouble as it hit capacity and many were blocked from attending.Liquidators Grant Thornton on Tuesday hosted a webinar for Porter Davis customers. The meeting immediately ran into trouble as it hit capacity and many were blocked from attending.
In a recording later published online, liquidator Said Jahani acknowledged customers’ frustration but urged them to be patient, saying Grant Thornton should know within a week whether Porter Davis would be sold.In a recording later published online, liquidator Said Jahani acknowledged customers’ frustration but urged them to be patient, saying Grant Thornton should know within a week whether Porter Davis would be sold.
The plan was to find a builder or builders who could step in and take over contracts, Jahani said.The plan was to find a builder or builders who could step in and take over contracts, Jahani said.
“The reality is, we just don’t have the luxury of this process dragging out for weeks and months,” he said.“The reality is, we just don’t have the luxury of this process dragging out for weeks and months,” he said.
Liquidators hoped they could get customers’ homes built quicker than if they went through insurers, with both Queensland and Victoria having state-backed warranty insurance schemes.Liquidators hoped they could get customers’ homes built quicker than if they went through insurers, with both Queensland and Victoria having state-backed warranty insurance schemes.
But there was no guarantee the process could be expedited, Jahani said.But there was no guarantee the process could be expedited, Jahani said.
There were also some people without insurance. They fell into a gap between paying Porter Davis a deposit and not having an insurance policy until weeks or months later when a permit was obtained, Jahani said.There were also some people without insurance. They fell into a gap between paying Porter Davis a deposit and not having an insurance policy until weeks or months later when a permit was obtained, Jahani said.
“At its extreme, it means you do not have any insurance cover, and it means that the deposit you have paid has been lost,” he said.“At its extreme, it means you do not have any insurance cover, and it means that the deposit you have paid has been lost,” he said.
“However, as I have said, we are trying to work with the VMIA [Victorian Managed Insurance Authority] and the QBCC [Queensland Building and Construction Commission] to see whether there is an alternative solution there.”“However, as I have said, we are trying to work with the VMIA [Victorian Managed Insurance Authority] and the QBCC [Queensland Building and Construction Commission] to see whether there is an alternative solution there.”
Generally it wasn’t possible for customers to get their deposits refunded and switch to another builder, Jahani said.Generally it wasn’t possible for customers to get their deposits refunded and switch to another builder, Jahani said.
Porter Davis also owned customers’ plans and designs as part of its intellectual property.Porter Davis also owned customers’ plans and designs as part of its intellectual property.
“We’re investigating whether there is an ability to allow customers access to their plans to allow them to at least complete their house,” Jahani said.“We’re investigating whether there is an ability to allow customers access to their plans to allow them to at least complete their house,” Jahani said.
Liquidators would examine whether Porter Davis was trading while insolvent and if that meant they did wrong by customers, Jahani said.Liquidators would examine whether Porter Davis was trading while insolvent and if that meant they did wrong by customers, Jahani said.
About 240 customers were expected to have the least delays.About 240 customers were expected to have the least delays.
Their properties were essentially ready to be handed over and liquidators were looking to have them sort out any remaining work and receive a certificate of occupancy.Their properties were essentially ready to be handed over and liquidators were looking to have them sort out any remaining work and receive a certificate of occupancy.
Remaining customers whose homes were either not yet started or at lock-up stage would have to get other builders, Jahani said.Remaining customers whose homes were either not yet started or at lock-up stage would have to get other builders, Jahani said.
He condemned anyone accessing sites without written permission and said vandalising homes was effectively targeting its customers.He condemned anyone accessing sites without written permission and said vandalising homes was effectively targeting its customers.
Reports have also circulated of Porter Davis homes allegedly being targeted, with one home going up in flames on Monday in Melbourne’s southeast.Reports have also circulated of Porter Davis homes allegedly being targeted, with one home going up in flames on Monday in Melbourne’s southeast.
It took fire crews 40 minutes to bring the blaze at Clyde under control. Police are investigating.It took fire crews 40 minutes to bring the blaze at Clyde under control. Police are investigating.
Grant Thornton has issued several notices to suppliers and contractors warning them of criminal liability for unauthorised site access.Grant Thornton has issued several notices to suppliers and contractors warning them of criminal liability for unauthorised site access.
The home builder’s demise affects more than 1,700 properties in Victoria and Queensland, with an estimated 1,500 in Victoria.The home builder’s demise affects more than 1,700 properties in Victoria and Queensland, with an estimated 1,500 in Victoria.
The Victorian premier, Daniel Andrews, encouraged affected people to get in touch with the VMIA, but noted mandatory insurance was capped at $500,000.The Victorian premier, Daniel Andrews, encouraged affected people to get in touch with the VMIA, but noted mandatory insurance was capped at $500,000.
Authorities were looking into a cost escalation clause to amend this, he said.Authorities were looking into a cost escalation clause to amend this, he said.
The premier said reports alleging Porter Davis baited customers with significant discounts when the company had no expectation it would be able to fulfil contracts “were troubling”.The premier said reports alleging Porter Davis baited customers with significant discounts when the company had no expectation it would be able to fulfil contracts “were troubling”.
Authorities would look at the issue and it was important people acted in good faith, he said.Authorities would look at the issue and it was important people acted in good faith, he said.
The Victorian opposition leader, John Pesutto, held a summit on Tuesday with home builder representatives who said more than 50 per cent of the industry was at risk of collapse.The Victorian opposition leader, John Pesutto, held a summit on Tuesday with home builder representatives who said more than 50 per cent of the industry was at risk of collapse.
The opposition’s home ownership spokesperson, Jess Wilson, would chair a taskforce looking at addressing issues in the building sector, he said.The opposition’s home ownership spokesperson, Jess Wilson, would chair a taskforce looking at addressing issues in the building sector, he said.