Porter Davis liquidators in talks with new builders to finish homes

The liquidators of collapsed construction firm Porter Davis are in talks with more than 20 builders who are willing to help complete some unfinished homes, and have flagged that up to 250 homes could soon be handed over to customers.

On Thursday, customers anxiously awaiting news on the status of their homes were given some encouragement when liquidators from Grant Thornton said several builders had offered help to complete homes for Porter Davis clients.

“For those customers where PDH [Porter Davis Homes] is unable to offer handover under the current contract, we expect to be in a position to introduce them to replacement builders within the coming week to discuss how their home build may be completed,” a spokesperson for the liquidator said.

Porter Davis, the country’s 12th largest home builder, immediately stopped work on 1700 homes it had under way in Victoria and Queensland on March 31 when it was unable to find a last-minute buyer or financial backer to cover a funding shortfall estimated at up to $20 million.

A further 779 customers, who had signed a contract and paid a deposit were also affected, while 410 staff were made redundant after liquidators were appointed the same day.

Loading

Hundreds of Porter Davis customers flooded an online meeting on Tuesday and were told by the liquidators that some people could have lost their entire deposit because the building company did not take out insurance for new builds until planning permits were obtained, sometimes weeks or months after customers had signed a contract.

While bringing in replacement builders could offer the fastest path to the completion of homes, the liquidators recommended customers seek their own legal advice to ensure they do not inadvertently compromise their entitlement to insurance cover under the Victorian Managed Insurance Authority or Queensland Building and Construction Commission.

The liquidators also said more than 250 homes that were close to completion at the time of Porter Davis’ collapse were expected to qualify for an occupation certificate. This would allow for customers – who have been or will be contacted by Porter Davis staff – to be handed the keys to their homes.