Westminster Homes

Sure thing. I will send you a PM.

Hi All,
I have been talking to the administrator and they are in the process of looking for a buyer for the current westminster builds and new contracts so they can raise some money to pay creditors. They seem quite confident that they will find a buyer/builder. This means that there should be a seamless transfer to the new builder. The new builder will look to take on all the current Westminster jobs and work with volume in order to keep the costs down and the potential for an out of pocket loss to the owners to a minimum. Going with a private builder will be quite expensive and will most likely exceed the 20% of contract price payout plus remaining payments outstanding. A volume builder appointed by the administrator will be the best outcome for everyone. The same thing happened when Beechwood went under. I hope this helps put some minds at ease. The administrator has told me that they will be in contact with home owners this week.
Regards,
GForce.

Make sure you lodge your claim first with QBE who is acting on behalf of the NSW Government warranty insurer. Make sure you claim for everything you can - get legal advice in need.
If you are out of pocket after the insurance payout complain to your local member as this insurance was taken back by the former Labor Govt from private insurers to protect and stabilse the industry.

The Home Warranty fund is aware of the massive exposures it holds to the volume builders and the NSW taxpayer may have to bail if a few more builders go belly up......

Gforce, if a new builder is found & takes over all the WM contracts, do they continue on with our existing contracts
(ie, same contract value ) or will they re-negotiate the contact & create a new tender with a revised price?

Sorry to hear the sad news for everybody and really hope that things get resolved as soon as possible for you all.

Good question springtime. Sorry I have no idea, but I would expect that they might be open to varying the price. But who knows how long finding a new builder will take? Was it quick with Beechwood (I don't know what happened there). One thing to think about is what is it costing in the meantime, such as holding costs if you have a mortage / interest to a bank. I hope the insurance will cover that? If I were you I would try to get out of the whole mess ASAP and sign up with a new builder to complete the job.

Springtime, the adminstrator and insurance companies are working together to find a new builder to buy the outstanding home builds and new contracts. After talking to the administrator today, I hear there are several parties interested in the aquisition. The builder who takes over will take possesion of the contracts, the outstanding payments from customers AND up to 20% of the contract price of each contracts total value (payable by each HWI provider) as a cash payment from the insurers to complete the builds. The new builder would never turn a profit without this 20% of the contract price cash component. You will then have the option to go with the new builder. I cant speak on behalf of your HWI insurer, but Vero customers also have the option of getting 2 quotes from builders and taking the private builder option to complete. The up to 20% of the contract price will be paid to the client and will be used to pay your private builder to complete, should you take that path. The insurance company and the administrator will recommend you go with their nominated builder. For Vero customers, if you select the administrator nominated builder, you will not wear any uninsured loss. Loss is minimised by avaraging out individual losses out across all contracts. If however, you decide to choose your own nominated builder from 1 of the 2 quotes you acquired, Vero will allow you to take the one they agree to, however they will only cover you for up to 20% of the contract price should the cost of the build exceed the orginal contract price quoted by Westminster. Your loss will not be averaged out as you will be going solo with your chosen builder. That means if you have to pay 25% extra, you will have to wear a 5% uninsured loss. Either way, depending on which option you take, you will enter into a new agreement with the new builder. The contract you had originally was with Westminster Building Co. They dont exist anymore, so a new contractural agreement will be made between you and your new builder. You will also be issued with a new HWI contract with which ever insurer provides HWI for the new builder.

Cheers,
GForce.

Hi GForce - that sounds like extremely useful info. Does HWI = Home Warranty Insurance? That's great that HWI pays out 20% to either the new company or if people go privately. I was wondering how all that worked (and hope I don't have to use it with our builder; after coming to close to signing with WHM). Does the HWI cover any client costs for interest paid on mortgages, rent etc. (due to the long delays in WMH doing the work, and now the admin process of new builder? Or maybe that is what the 20% covers? ).

What option are you thinking of doing? Or just wait and see?

In a way, it is a relief that WMH has gone under so now the insurance kicks in and hopefully you can all see your dream homes completed. I've gotten to know a few you guys (off line, you know who you are) and I am so hoping things get better for you

Nina Marie, thankyou for your well wishes

SunshineT, Thanks for your kind words, it's very hard at the moment deciding where to go from here, Oh, congrats on signing your contract, looks like you'll be busy in the next few weeks making all those colour selections, mind boggling but fun

Gforce, thanks for explaining that to me, cos we're yet to hear from Qbe, & we're still trying to get quotes. We just want the house finished, & if there is an option for us to choose our own builder, I think that's the way to go for us, I just want to get back on track like everybody else. Honestly, it's the only thing my husband & I talk about day & night & it seems like there is no end in sight. To think that this time last year were so excited to sign the contract....if we only knew then what we know now, we would have saved ourselves thousands of $ , heartache & many, many sleepless nights!
I can't wait for the meeting next week to see what Lawler have to say, I wonder how many people will turn up since it's held during business hours not after 5pm?

Sunshine T, I didn't see your post till I posted mine.
You're such a sweet , kind hearted person, & I'm so glad you made the right decision ,so when is your house likely to be finished? cos I was thinking ours will probably be finished at the same time as yours?

Hi springtime - you are one of the lovely people I have come to know and I am for. Actually, I am sending good wishes for everyone.

So you are with QBE and others with Vero? How is it that people have different insurers with the same builder?

ha ha! My next post crossed over yours too! It was all thanks to this forum and people like you that we didn't sign with WMH. So a huge thank you to you... As for our house, we are hoping to start Jan next year. Couldn't say when it will be finished, but our builder has a 25 week rental guarantee ($300 per week if they go over), but when I was talking to them about it last weekend they were not fussed about going over as they expect about 4 months. I am being a bit more pessimistic (things always go wrong if its one thing I have learnt from H1), but we are pretty sure it won't take 6 months.. so, maybe finished July / Aug next year?!?!

What is your timing? What was the last bit of work done on your house by WMH? Don't give up on looking forward to your dream home... it will happen! And I think this final result of going under will put an end to all the limbo and waiting...

The reason there are 2 no sorry 3 insurers involved is because those who signed a contract before 30.06.10 are with Lumley & Vero Insurance. Those of us who signed after June 2010 are with QBE.

As for timing, we really don't know, as all we have at the moment are slab, frame & bricks & no roof, so I'm guessing 30% of the build so far, we're thinking maybe by Easter next year it may be finished, but it all depends on what happens with the insurance, it's just a wait & see game at the moment.

Oh right! Now I understand why different insurers... for your sake I hope QBE has the same 20% contract price that GForce mentioned for Vero. I really feel for people who signed over 15 months ago (before June 2010) so with Vero. That is sooooooo long now. Thank god it is almost over.

ps: What % of your contract price have you paid already to WMH? More than 30%?

Yep, paid 50% of the contract & only 30% of the work done

I have been following this terrible saga and sympathise with everyone who has been put in this terrible situation, I pray that you all get a quick resolution and things progress for you.
I looked at the Home warranty insurance link and it actually says everyone is to go through QBE although I am not sure what happens for those that entered into a contract before July 2010:

If you are a homeowner who has entered into a contract with Westminster Homes and have been issued with a Certificate of Insurance dated from 1 July 2010 onwards you are covered by the Home Warranty Insurance Fund's home warranty insurance policy for residential building work.

Between 1 July 2010 and 28 July 2010 Certificates of Insurance for work contracted by Westminster Homes were issued on behalf of the Home Warranty Insurance Fund by Vero Insurance Limited. From 29 July 2010 onwards Certificates of Insurance have been issued on behalf of the Home Warranty Insurance Fund by QBE Insurance (Australia) Limited.

QBE Insurance (Australia) Limited will be handling claims on behalf of the Home Warranty Insurance Fund for all Certificates of Insurance issued on behalf of the Fund.

[quote="springtime"]Yep, paid 50% of the contract & only 30% of the work done /quote]

oh springtime I hope you get the 20% which might help...? Altho that much front loading in payments would tempt me to stay with the new insurance nominated builder (which I assume / hope would stick to the original WMH contract price... I guess that is the key bit of information for you - will the new builder honour the original contract price?). I really hope so. Do let me know how you get on ...

Thanks T, will let you know how we get on.

Also , thanks for the info you sent in the pm , it will surely come in handy.

Hi Guys

What a stressful time ,Hopfully we can see the light at the end of the tunnil?
Can anybody tell me that if i go as an owner builder to finish my home do i still get the 20% of the original contract price? do i still need to bring a quote from the other builders.
I wish all of you a good luck with your dream home.

Thanks

Hi I want a solution,

Before you go down that road, have you looked into what's involved in being an owner builder?
From what I have read on the DoFT website, you need first of all to be liscenced . To get your liscence, you need to do a short " Owner builder course " . Once you have your liscence, you need to ensure all tradies that work on your house are liscenced & you need to have liability insurance to cover them.
Then you need to inform your council that you are now the builder . There are other things involved as well, but from memory, these are the major ones. It's a very stressful time for all of us, & it's gets worse as the days go by. I just wish the insurance company hurries up so that we know what's happening. Are you going to the meeting on Thursday?