• In short: The Victorian Managed Insurance Authority (VMIA) has been accused of forcing families to accept the lowest-cost replacement builders following a string of building company collapses.
  • Homeowners say it has added to their distress, and left some hundreds of thousands of dollars out of pocket to rectify defects.
  • What’s next? Couples who spoke to the ABC are pursuing challenges to VMIA’s decisions.
  • AutoTL;DRB
    11 month ago

    This is the best summary I could come up with:

    When Siddarth Prakash and Chetna Mahadik’s builder went bust and fled the country in 2020, they were confident Victoria’s state-run domestic building insurer would guide them through the stressful situation.

    Multiple families have accused the state run-building insurer of forcing them to accept the lowest-cost replacement builders causing more distress, and leaving some homeowners hundreds of thousands of dollars out of pocket to rectify defects.

    Mr Prakash says the builders he approached completed thorough audits of his house and found major defects with the slab and building frame.

    “We felt that the process disadvantages a builder who had done a forensic examination of the place, identified all the defects and gave an honest quote to complete,” Mr Prakesh said.

    The VMIA said it was “successfully helping a record number of claimants complete their homes by partnering with established large builders with proven capability and capacity who can use economies of scale to leverage their existing agreements with trades and suppliers”.

    The government said parties were not required to sign a non-disparagement clause, but they are sometimes used to encourage good faith negotiations to resolve complex matters.

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