Porter Davis

strannik · Apr 05, 2023 12:46 pm

AVM470

That's a good move and if its a standard HIA contract without amendments, they shouldn't be asking for a deposit before providing insurance anyway.

I don't think the 12 month expiry explanation to be true, and maybe they said that to try and get your deposit asap. Policies commence on the earlier of contract execution of building permit issue and end on the cover period for both structural and non-structural defects (6 and 2 years respectively). Happy to be corrected on that if there's some Act that overrides the policy.

as with any insurance, people should carefully read the PDS(or the equivalent documents).

for queensland it's this one, i believe: https://www.legislation.qld.gov.au/view ... 8#page=165

CallyNoon · Apr 05, 2023 3:01 pm

Surely the insurance can just be extend if the build goes over anyway.

effraye · Apr 05, 2023 3:20 pm

Of course but it's a cost to the builder, so they try to avoid.

Have to remember and the Porter Davis collapse highlights this in my mind, alot of these 'builders' aren't even builders they are just production companies hiring subcontractors... they are effectively just glorified paper shufflers.

ponzutwo · Apr 05, 2023 4:40 pm

effraye

Of course but it's a cost to the builder, so they try to avoid.

Have to remember and the Porter Davis collapse highlights this in my mind, alot of these 'builders' aren't even builders they are just production companies hiring subcontractors... they are effectively just glorified paper shufflers.

While you're not wrong in the general sense, as they dont have their own chippies, concreters etc. many of them have some sort of building/construction background and many employed directly by them will also have building experience - eg the site supers generally do (but not always). I had 2- one was an ex chippie, the other was an ex brickie. both exceptionally detail oriented regardless of their prior trade, but had an understanding of the other trades to be able to spot BS or poor workmanship (to a degree).

Its just an optimized large scale workflow. Not everyone in the flow needs to be a "builder". Toyota even pioneered a process for improving its manufacturing workflows that gets used from everything from manufacturing to finance.

pushing things from one stage to the next in an efficient manner is how you do things at scale. And these builders are doing scale. Your milage may vary on efficiency however, and that usually due to poor upstream processes and problems that didn tget resolved earlier. Standard symptom of people not reviewing and optimizing regularly.

AVM470 · Apr 05, 2023 5:08 pm

CallyNoon

Surely the insurance can just be extend if the build goes over anyway.

There isn't any need to. As I wrote previously, there isn't a set term, there is just commencement based on earlier of contract signing or building permit issue and conclusion at the end of the structural and non-structural warranty terms.

effraye

Of course but it's a cost to the builder, so they try to avoid.

Have to remember and the Porter Davis collapse highlights this in my mind, alot of these 'builders' aren't even builders they are just production companies hiring subcontractors... they are effectively just glorified paper shufflers.

A builder can't avoid it. DBI is required by law, and you won't get a domestic building permit without the builder having provided DBI. The issue with PD/DBI/deposits is more about whether they knew they were going under and specifically instructed their staff to take deposits before getting DBI, before pulling the pin.

I'd love to know what your definition of a builder is or should be in your mind.