Bankrupt Builder on partially finished house

Sir Snagger · Jun 02, 2019 9:33 pm

Hi all. I'm looking for any experiences from people who have been in a similar situation. A family member is currently in the unenviable position of having had their builder go bankrupt part way through the build. They will get a payout from insurance and have had other builders come through to look at finishing the house, but I don't believe anyone has been too keen to get involved.

Essentially the project is at a standstill (at lock-up but unfinished and with some possible defects that need work). What have others done if you've found yourself in a similar situation? I'm guessing the only 3 real options are either engage a new builder to finish, go Owner-Builder and finish or sell as is for a loss.

Thanks for any advice shared.

SaveH2O · Jun 02, 2019 9:59 pm

Forum member bashworth has an excellent blog which is a go to for hundreds of building subject matters.

http://anewhouse.com.au/2012/10/if-the- ... goes-bust/

You can also do a forum search for other's experiences by using keywords such as liquidation and bankrupt/bankrupcy etc.

Sir Snagger · Jun 02, 2019 10:21 pm

SaveH2O

Forum member bashworth has an excellent blog which is a go to for hundreds of building subject matters.

http://anewhouse.com.au/2012/10/if-the- ... goes-bust/

You can also do a forum search for other's experiences by using keywords such as liquidation and bankrupt/bankrupcy etc.

Thanks for the blog tip - I'll def check it out. I did do some searches but didn't find much that was overly relevant.

StructuralBIMGuy · Jun 03, 2019 9:20 am

From what I've heard the Insurance Kitty is also near collapse
as more money is now going out by way of claims than going in by way of premiums
they'll need an building audit and structural report
Go Owner Builder
Goodluck

Joker · Jun 03, 2019 11:35 pm

What area are you from.

alexp79 · Jun 04, 2019 3:40 am

go owner builder and finish at your own (financial and time) pace

Sir Snagger · Jun 04, 2019 10:16 am

Joker

What area are you from

Sorry, SW WA based.

Sir Snagger · Jun 04, 2019 10:18 am

alexp79

go owner builder and finish at your own (financial and time) pace

This is my gut take on the situation. Only thing I've discovered that would need to e considered is the Indemnity Insurance if selling up within 7 years, which is a possibility after being left so disappointed with the whole experience.

Joker · Jun 04, 2019 11:03 am

Would do what Alex79, structuralBIMGuy suggest,go owner builder, getting individual jobs done will be easier than getting a builder to take over,if you were in Geelong area know a good builder who has completed homes in similar situations,but only Geelong area,with your home partly completed it won't be all that hard, or you can get a project manager to guide you with steps and trades.