Browse Forums Building A New House Re: Procorp - Administrator appointed 448Dec 12, 2012 12:01 pm JB2012 Zeitgeber pls note that any overpayment made on the contract will be deducted from any settlement offered. If the builder has been paid 65 percent of the total contract amount but has only completed 50 percent then that's considered an overpayment and will be deducted. In my above scenario, if owner has already paid 65%, but builder has actually done only 50%, then the owner will still not be out of pocket:
So, in the above scenario where :
Re: Procorp - Administrator appointed 449Dec 12, 2012 12:08 pm b0son What is the implication here, given Procorp's progress payment schedule was so front-loaded (ie. 95% by lockup)? HIA contract says that you should only pay up to 65% at lock-up, unless :
Re: Procorp - Administrator appointed 451Dec 12, 2012 12:30 pm sorry cant get it! brain in overdrive!! what happens if weve paid 22,000 in variations ontop of contract?for eg:lock up is $320,000 +$22,000 is $342,000 are variations covered too as these variations were paid out of our pocket ,we have receipts of payments to date but not actually on progress payment schedule!Cath and Jim Re: Procorp - Administrator appointed 453Dec 12, 2012 12:37 pm mmm ours is way more than 65%and thats lockup!!cath and jim Re: Procorp - Administrator appointed 454Dec 12, 2012 12:46 pm I dont think that scenario is right! I think what you are trying to say is QBE cover up to 20% of the value of the contract plus defective works on top. The money we/bank had left to pay in progress payments is on top of that also. Most of us have paid 95% of the contract value. We have bugger all left in progress payments and the total of the progress payments and money from QBE is way less than the work needed to complete the house.. Re: Procorp - Administrator appointed 455Dec 12, 2012 1:08 pm zeitgeber HIA contract says that you should only pay up to 65% at lock-up sorry, not lockup, whatever follows that (i think it was 'fixing' on our contract, ie. gyprock) but prior to practical completion. either way, the standard procorp contract was 95% paid with much more than 5% of the work to go (kitchens, bathrooms, tiling, aircon). how can customers be blamed for this? the schedule is only a recommendation, NOT a legislated requirement and most builders have a take it or leave it attitude where this is concerned. luckily for us, we got to handover and are only out of pocket the 90 day warranty items (few, surprisingly, given some of the complaints of defects). lesson learnt, payment schedule will be the first enquiry I make of any builder I use in future. Re: Procorp - Administrator appointed 457Dec 12, 2012 2:46 pm My husband said maybe he interpreted what the administrator told him wrong. He just said they are going into liquidation and that we will need to make a claim through QBE to complete our house. My husband said what about all the builders going out looking at the houses and quoting, he said it is to take over the business/buy the business and if someone was to buy the business the current contracts would not be honoured and we would need to go through insurance and get up to 20%. I said to my husband this could still mean the builder buying the business would offer to current houses under construction to finish the house, us pay the new builder the amount left in progress payments and the balance be paid in a bulk claim from QBE. I am not sure... I am confused. Why would the administrators says in the email the other day that claims wouldnt be individually assessed if a new builder took over? I think the administrator doesnt know what he is talking about... Lets just hope he means a new builder hopefully will buy the business and will take over all current contracts which would mean our progress payment amount direct to them and a claim between the builder and QBE for all works they are doing and a bulk payment made to the builder.. That makes more sense to me? Re: Procorp - Administrator appointed 458Dec 12, 2012 2:54 pm Zeiteger what I was trying to explain is should the insurer believe that a contract was overpaid by say $20k then that will be deducted from the settlement amount. Very hard to calculate until quotations to rectify and complete have been obtained. Most quotes are going to be pretty high as procorp probably under quoted originally and then any new builder will put a decent mark up to cover the risk of taking over someone else's job Re: Procorp - Administrator appointed 460Dec 12, 2012 4:39 pm Cathjimrippedoff mmm confusing day!! cath and Jim agree cath and jim confusing it is its just too much for me to get my head around all i wanted was to build a home not a nightmare |