Browse Forums Building A New House 1 Nov 19, 2012 1:56 pm Hello everyone, More issues here and the ultimate drama with my builder as I just found out this morning they have gone under! I have been told to wait for a few days and I shall be given a proposal to consider. It was explained to me that they are currently in talks with a bigger builder to take over their contracts and so "it shouldnt affect me" other than having a new supervisor. I want to ask people in the know, where do I stand? If I knock back their proposal, what happens then? If my house is taken on by a new builder to complete will the builders insurance be in place as if it was the original builder? Also please could someone please explain the indemnity insurance to me and in this case will it cover me? All your advice will be much appreciated as I have already been sweating on this all through the weekend with the gut feeling something was wrong. My wife is going kill me when she finds out Re: Builder has gone under - where do I stand? Please help! 2Nov 19, 2012 5:52 pm If your builder has provided you with with home warrant/ indemnity. Then the insurance will pay for your house to be finished according to your contract with the bankrupt builder. Suggest you get an independent inspection and for the inspector to list all the incomplete works as well as any defects and present that to the insurer so its clear what needs to be done. They then allocate a builder to finish the work. Building Henley Monaco Nouveau Q1 - Mernda Villages https://forum.homeone.com.au/viewtopic.php?f=31&t=57810 http://razbuild.blogspot.com.au/ Re: Builder has gone under - where do I stand? Please help! 3Nov 19, 2012 7:25 pm Hi Boosho, Thanks for your reply. I believe that indemnity insurance is mandatory here in WA so I am perhaps covered in that regard though I believe the total value cannot exceed 100k, at least that is what I read online. The builder claims to be in talk with a larger builder which will take on all their contracts and if so I wonder if I will be out of pocket for any further expenses? Very frustrating that I have just authorised the plate height payment for $46k and they go bust a week later without lifting a finger to start the job, no wonder they were hounding me to send it through asap. An inspection will no doubt set me back some money, may I ask what am I looking at and if its required? The reason I ask is they have only done the brick work and my brother being in the trade has already inspected it giving a tick of approval, saying its good work to this stage. Re: Builder has gone under - where do I stand? Please help! 4Nov 19, 2012 8:07 pm Yes indemnity cover is required to be taken out by the builder before they can be issued with the building license. There is a $100k limit but this only applies to structural defects. However, if the builder goes bust before completion then the insurance will cover the completion of the house as per your contract. The limit shouldn't apply in this instance. As for the inspection, the insurer will require a formal report from an inspector in order for them to know what the claim is for. Normally (depending on the insurer) they would organise that. However for your own piece of mind you should get your inspection done. $400-$600 would be worth it to avoid any disappointment. Building Henley Monaco Nouveau Q1 - Mernda Villages https://forum.homeone.com.au/viewtopic.php?f=31&t=57810 http://razbuild.blogspot.com.au/ Re: Builder has gone under - where do I stand? Please help! 6Nov 20, 2012 3:50 pm Thanks again Boosho for the additional information. Its good to know that my worst case scenario will be covered by insurance if the builder dosent come back to me with a worthwhile proposal. Re: Builder has gone under - where do I stand? Please help! 7Nov 23, 2012 11:21 am I know the builder you are talking about. Quite frankly you are better off. If they go under your indemnity insurance will kick in. That process can be slow, but at least you arent up the proverbial creek I have heard they are in talks with a bigger builder. For your sake I hope it is a good one. Sorry! I'm new to this forum and have made a mistake in my posting! I'm looking for a structural solution to a stand alone wooden pickets fence with no structural rail… 1 3287 I work with owner, he/she is my man on the ground and I instruct them when to visit the site and take photos and I have other tools in the bag. 4 15020 |