Some homeowners caught up in the collapse of Porter Davis may lose their deposit as the company didn’t take out insurance on its new builds until building permits were obtained.

Liquidators Grant Thornton made the revelations in a webinar today, where they answered questions on the process and outlined the next steps forward for the thousands of people affected after the construction giant’s collapse.
Liquidators Grant Thornton made the revelations in a webinar today, where they answered questions on the process and outlined the next steps forward. (JOE ARMAO)

Said Jahani from Grant Thornton led the webinar, where he told homeowners there were a number of customers who found themselves uninsured.

Affected customers included those who signed their contracts and paid their deposit before the company had obtained planning permits.

“There was usually a timing lag or timing gap between the deposit being paid by the customer and the permit being gained,” he said.

“A number of customers have fallen into that gap.

“We are in consultation with the VMIA (Victorian Managed Insurance Authority) about what the consequences for customers who fall into that gap may mean.

“At its extreme, it means you do not have insurance cover, and it means the deposit you have paid has been lost.”

The Aussie stores that were once everywhere but now have vanished

The Melbourne-based construction group, which boasts 470 employees and has more than 1500 homes in progress, appointed Grant Thornton Australia as liquidators on March 31.

Grant Thornton confirmed that about 50-60 staff had been kept on to help assist with the process, while the 400 others were let go last week.

The administrators for Porter Davis said there are 779 signed contracts with customers where building has yet to commence.

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