If your builder has become insolvent, unfortunately progress on your home has halted. BSS can assist you with reports to get your project moving again.
As an independent building consultancy firm, we can support you with one of the critical first steps by providing Defects and Stage of Works reports.
Defects report: documents existing defects in the build that will require rectification when your new builder takes on completion of your home.
Stage of Works report: essentially this is a snapshot in time, clarifying the works that were completed by the insolvent builder and the works that are remaining in order to complete building your home.
These reports will assist in processing your insurance claim. Insurance claims for when a builder becomes insolvent are for the cost of defect rectification and where there are increased costs to complete the project compared to the original contract value.
We also note that reasonable costs for consultant reports such as Defects and Stage of Works may be claimable under the same insurance policy.
You will need to contact the insurer for details on the policy and what can be claimed. Refer below guidance and links that may assist you with your enquiries.
Call our dedicated support line today, (03) 9377 3003, or email us on info@bssgroup.com.au, for expert help with Defect and Stage of Works reports.
What should an Owner do now?
Step 1: Domestic Building Insurance
- Go through your contract document and look for your Domestic Building Insurance (which is likely issued by VMIA). If you cannot locate any Domestic Building Insurance you can complete the Domestic Building Insurance Property Search and the VMIA will inform you if a policy has been taken out – https://www.dbi.vmia.vic.gov.au/Property-Search.
- Go to the Domestic Building Insurance Portal (DBI Portal) and submit your claim – https://www.buildvic.vic.gov.au/ClaimsPortal/LoginClaimant.
- If you have any queries about your Domestic Building Insurance, you can contact the VMIA by phone on 1300 363 424.
- You should do the above as quickly as possible to ‘get in the queue’.
Step 2: Engage a building Consultant to prepare a status of work report (Defects and Stage of Works reports).
- This will be critical for two reasons
- It will inform the VMIA of any defective works which need to be rectified and the status of the works.
- It will inform any new third party builder of the same issues (ie, the status of the works and any works that need to be rectified).
Step 3: Contact your Registered Building Surveyor (RBS).
- You should also contact your RBS to confirm the status of your building permit and if there are any steps you need to take.
Step 4: Secure the Property.
- You should ensure the site is secure
- This may require you to install temporary fencing (or contact the temp fencing company to see if you can continue to pay the invoice so they don’t remove the fencing).
- This may require you to contact your home & contents insurance to see if they will cover you for the property (although they may not as it is still under construction).
Step 5: Engage a new builder who may take on the project or register yourself as an owner builder.
- This is probably going to be the hardest step depending on the stage of your works.
- Make sure the new builder has a copy of your Building Consultant’s Report so the scope of building works is clearly understood.
- It is important to ensure your new contract terms are fair (as the price and inclusions may change).
For independent professional help, please call (03) 9377 3003 or email us on info@bssgroup.com.au today.
