Bricklayers, cleaners and subcontractors employed by construction giants are heartbroken and out of pocket after the collapse of Porter Davis exposed a looming industry crisis.
Victoria does not allow builders to adjust fixed-priced contracts if their costs blow out.
Fixed-price contracts are common in the home-building sector, leaving companies like Porter Davis exposed as costs escalated sharply due to the pandemic squeeze on labour and supplies as well as the war in Ukraine. Vlad and Chris Simunkovic, who own a family bricklaying business with their son, Jack, said they had been left about $35,000 out of pocket.
Master Builders Victoria interim chief executive Michaela Lihou said the current lack of flexibility in fixed-priced contracts was placing an unrealistic stranglehold on builders. “All we were doing was picking up our gear,” Vlad said. “I understand both sides, people are so distraught now, but we feel like we are being tainted and portrayed as a villain when we are not.”“As bad as we feel, I know they feel a lot worse and there’s probably a lot worse off out there. No one’s a winner here that’s the problem. And we feel we’re just left with nothing, nowhere to go and no one cares.
Fuller said working as a subcontractor for Porter Davis had given her the flexibility to care for her mother, who has Alzheimer’s disease.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Porter Davis customers to learn fate ‘within the week’Porter Davis customers should find out this week if liquidators Grant Thornton have secured a new builder to finish their partially completed homes.
Read more »
Family devastated after fire destroys near-ready Porter Davis homeA near-complete Porter Davis home has been destroyed by a fire in Melbourne’s south-eastern suburbs. Police are treating the cause of the fire as suspicious.
Read more »
Family’s near-ready Porter Davis home gutted in suspicious fireA Melbourne family that was close to moving into their brand-new Porter Davis home witnessed it go up in flames, just days after paying a lock-up fee.
Read more »
Devastated Porter Davis customers swamp liquidator’s meeting with questionsThe fallen construction company’s liquidators say there is “very strong interest” from other building companies willing to take over Porter Davis’ home building contracts.
Read more »
Liquidator warns some uninsured customers of collapsed home builder Porter Davis set to lose depositsLiquidators appointed to take over collapsed Victorian home builder Porter Davis have warned some customers who had paid a deposit, but not had received permits, have been left uninsured.
Read more »
Angry customers of collapsed Porter Davis may lose depositsThe liquidators of Porter Davis are investigating whether the home builder’s directors can be held liable for incurring debts while the company was insolvent.
Read more »