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WA Building Remedy Order - What Happens if Company Goes Insolvent?

Discussion in 'Property Law Forum' started by Cassandra4, 30 April 2015.

  1. Cassandra4

    Cassandra4 Well-Known Member

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    Hello,

    I have posted questions on this forum twice before, which have successfully assisted me in submitting an Official Complaint to the Building Commission. Recently, I have been issued with a 'Proposed Home Building Remedy Order' from the WA Building Commission. It is proposed until a 14 day period finishes (where either the builder or myself can disagree with the remedy order). Currently, no disagreements to the remedy order have been lodged.

    Since I lodged the complaint however, the builder in question appears to be failing quite significantly. A few weeks ago they released an announcement saying that they will have a solution that is in the best interest of their clients very soon. Yesterday, clients received an email saying that a solution has been reached for clients not yet in the construction phase (in the form of another builder taking over), however a takeover by a larger building company fell through in the final agreement stages... The builder has mentioned they are now in the final stages of securing a solution (again) for clients in construction.

    As we have many excuses and stories given to us previously I am filled with worry! I suspect this builder is very close to being insolvent and if a takeover does not occur - will claim insolvency and then we will have to go through the home indemnity insurance in place to finish our home.

    I have not contacted the company regarding the proposed remedy order sent out or the second announcement, not sure if worth it or really, what to say that they haven't already told me.

    My main questions are:
    1. What happens if the company goes insolvent while the building remedy order is in the proposed stage?
    2. What happens if the company goes insolvent when the remedy order is issued (NOT proposed)?
    3. If a takeover/merger/etc occurs what happens to the building remedy order (proposed and not proposed)?

    The remedy order is to have my home practically completed within 6 weeks of the remedy order being issued.

    Any other opinions would also be appreciated.

    Thank you!
     
  2. Victoria S

    Victoria S Well-Known Member

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    Does the remedy order cover any of those situations you mention in your questions?
     
  3. Cassandra4

    Cassandra4 Well-Known Member

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    No, it is a remedy order to the Company in question.
     
  4. perthgranny

    perthgranny Active Member

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    I have the same issues. is this Concept Steel Constructions?
     
  5. Cassandra4

    Cassandra4 Well-Known Member

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    No it isn't! Good luck.
     
  6. perthgranny

    perthgranny Active Member

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    I just lodged the formal complaint. I did not get a response from building commission. I am now looking how to terminate from the contract?
     
  7. Cassandra4

    Cassandra4 Well-Known Member

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    Please remember if you terminate the contract you are then not covered if the company goes insolvent and can go through insurance. That's what happened to me - luckily I didn't terminate the contract and the remainder of works left are covered by the insurance company.

    If you have submitted the formal, paid, complaint to the building commission - you WILL hear a response back and you will be appointed a case officer.
     
  8. perthgranny

    perthgranny Active Member

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    Appreciate your advice. Do you know how long it will take to get a response from building commission?
    Not much work left to do in my building, so I am happy to end all this frustrations and start a new contract to do the rest, rather than waiting months till the builder resolve company issues. we have paid up to the lock up stage only, it's been completed too.
    I am not sure whether we are eligible for a right termination. can someone explain please?
     
  9. Cassandra4

    Cassandra4 Well-Known Member

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    I think I waited 1-2 weeks for an initial response but you could always give them a call to check on the progress of your application and make sure it was received. I'm guessing you have given the company in question the proposed complaint and 14 days to respond, as per the conditions of the building commission complaint system ..

    Completely your decision to terminate a contract, just remember companies tend to draw down more money in the first few progress payments so you could be left out of pocket. For example, I was past lock up stage when my company went insolvent (had benchtops and cabinetry), and $18 k left on my loan. The quotes from builders to finish my house were between $96-108k.
     
  10. perthgranny

    perthgranny Active Member

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    yes, I have sent the complaint letter to the builder 14 days ago but no reply. I contacted the director last week over the phone, and he told me that company did not have money to pay for suppliers and he could not tell a completion date. I have no written evidence regarding insolvency. but I sent an email to the company repeating his words and asking me to give a practical solution. no reply for that either.
     

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