Madas
Norm Smith Medallist
- Aug 16, 2020
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I’m not sure how they circumvented this ?My biggest issue with builders going under is they aren’t taking out the insurance which is supposed to form part of the deposit clients are paying for upfront.
Case in point is when Porter Davis (I’m fairly certain it was them) went under, they immorally didn’t take out the relevant insurances and the state government had to bundle out the poor homeowners and investors which were stitched up from it.
On a seperate note it sets a bad precedent for other builders to do the same thing and expect the government to bundle out others and it paved the way for others to cut corners and redirect funds elsewhere.
Surely there’s some way they can make directors of companies accountable for this?
Indemnity Insurance certificate taken out by the builder on behalf of the owners has to form part of the building license application
In WA you can’t be issued a building licence without the certificate?
The other problem we smaller builders face is that when these bigger building companies go bust creating hundreds of insurance claims it pushes the premiums through the roof