Liquidators were appointed to National building company Porter Davis Homes this morning, which had more than 1700 homes under construction.

If a residential construction company goes into liquidation, you suddenly find yourself left either out of pocket your deposit or with an incomplete house and ongoing alternative accommodation costs. Your ability to recover your losses from the construction company is limited given cannot sue a company that is wound up for insolvency without permission of the Court, and at best you might only receive a cents in the dollar distribution from the company’s liquidator.

For Queenslanders, there might be hope for you on the horizon. The Queensland Home Warranty Scheme administered by the Queensland Building and Construction Commission offers first resort home warranty consumer protection cover for up to $200,000 (and more if additional cover is obtained) for the additional cost of incomplete work, the cost of rectifying defective work, the cost of alternative accommodation.

However, there are specific things which need to happen before you have any right to make a claim under the Queensland Home Warranty Scheme, and there are exclusions and strict time limits you need to adhere to. If you get it wrong, your insurance claim could end being disallowed.

Sub-contractors with outstanding entitlements should check out our recent article in respect of options available: https://www.roselitigation.com.au/knowledge-centre/options-available-to-subcontractors/

If you are a sub-contractor or customer with questions about what do to next, call Rose Litigation Lawyers on (07) 3211 2922 or (07) 5574 0011 for an obligation free consultation.