Anxious Wait Ahead for Customers of Collapsed Builder

A welder works on the roof of a new house construction in Karratha. Australia, on June 17, 2008. Greg Wood/AFP via Getty Images

Would-be homeowners are angry and confused following a disastrous meeting with Porter Davis liquidators that left them with more questions than answers.

Liquidator Grant Thornton on Tuesday hosted a webinar for Porter Davis customers, which immediately ran into trouble as the meeting hit capacity and many were blocked from attending.

The home builder’s demise affects more than 1700 properties in Victoria and Queensland, with an estimated 1500 in Victoria alone.

But those numbers don’t include Porter Davis customers who have taken ownership of their homes with a lengthy list of defects the builder had agreed to fix.

Melbourne woman Natalie moved into her Bayside house in October last year, with more than 100 defects awaiting action.

And while she doesn’t regret accepting the house in less than-perfect condition, Natalie fears she and others in a similar position will be forgotten.

“We think it would be over $100,000 to rectify those issues because of all the trades that will have to come out, that includes plasterers, caulkers, window people, plumbers - the lot,” she told AAP.

“That wasn’t in the budget, because we thought Porter Davis would fix them like they said they would.

“I feel so sorry for those in limbo and set to lose money, but I think we are also part of a forgotten group of customers that the collapse affects. It is wide-ranging.”

Others, who spoke to AAP on condition of anonymity due to safety and security concerns, said they were feeling even more confused after Tuesday’s meeting.

One woman who was supposed to get the keys to her home in Melbourne’s western suburbs on Thursday said she had no idea what would happen next.

She said the liquidators were yet to contact her, and she lived in fear of someone breaking into the home and damaging it, causing further delays.

Another customer left with only a concrete slab said they were poised to lose a large chunk of money after learning Porter Davis had likely not undertaken insurance on their build.

In a recording of the meeting later published online, liquidator Said Jahani acknowledged frustration but urged customers to be patient, saying Grant Thornton should know within a week whether Porter Davis would be sold.

The plan was to find a builder or builders to take over contracts, Jahani said.

It will be investigated whether Porter Davis was trading while insolvent and if that meant they did wrong by customers.

Reports have also circulated of Porter Davis homes being targeted, with one going up in flames on Monday in Melbourne’s southeast.

It took fire crews 40 minutes to bring the blaze at Andante Crescent in Clyde under control. Police are investigating.

Grant Thornton has issued several notices to suppliers and contractors warning them of criminal liability for unauthorised site access.

Premier Daniel Andrews encouraged affected people to get in touch with the Victorian Managed Insurance Authority, but noted mandatory insurance was capped at $500,000.

Authorities were looking into a cost escalation clause to amend this, he said.