Porter Davis customers in limbo after shock homebuilder’s collapse

Victorians caught up in the nightmare collapse of builder Porter Davis fear they may be waiting months for inspectors to assess their half-finished properties.

Scores of Victorian families like the Jacobs have been left in limbo following the shock Porter Davis collapse. Picture: Ian Currie

Heartbroken victims of the collapse of homebuilder Porter Davis are expecting to wait months for inspectors to assess their half-finished properties.

Porter Davis customers who were waiting for their homes to start being built say they are confused about what kind of insurance payouts they might be entitled to.

And customers who were waiting for the builder to address defects fear they will be left to foot the bill for the shoddy work Porter Davis did in its final months.

Liquidators placed Porter Davis into administration on Friday, leaving thousands of Victorian homeowners in limbo.

Porter Davis customer Jesu Jacob said he could be waiting months for his case to be examined by the Victorian Managed Insurance Authority.

After battling two years of planning and construction delays, builders finally poured the slab at Mr Jacob’s East Keilor block in February.

Jesu Jacob with his son Jax at the slab for their house in Keilor East. Picture: Ian Currie

The father of one is hopeful another builder will be able to take the project on, but is concerned he could be left out of pocket.

“The liquidators say they’re having conversations with some other builders to see if there is any possibility to take over the existing contract of Porter Davis, but when I spoke to the VMIA, they said it’s highly unlikely,” Mr Jacob said.

“I ended up putting in an insurance claim …(the VMIA) said there are options but to get to that point I have to wait for a few months.”

Mr Jacob said insurance should cover up to 20 per cent of the building contract price, but having already paid 25 per cent of that – about $200,000 – will be left out of pocket.

New mum Jane Appleton, who has been living in her Greensborough-based Porter Davis home for more than a year, was discussing faulty floorboards with a subcontractor just hours before the company went under.

Ms Appleton said she had “no idea” how much it would cost to rectify the fault or if it was now up to her to find a new trades person.

“My house was completed in November 2021, so (these warranties) have been outstanding for a long time,” Ms Appleton said.

“(Porter Davis) were going to be doing it because it was their problem … and now it’s 100 per cent my problem and my liability.

The slab finally got poured in February this year but a month later the family have been left in the lurch after the building company folded. Picture: Ian Currie

“Even though things didn’t get done – yes, things dragged out – I still had faith in that it would be fine. The faith that I had in their brand and their reputation has let me down.”

First homebuyer Amber Barnes, who moved overseas to save for a property, had signed a contract with Porter Davis to build at a Clyde North estate.

After learning the company went bust, Ms Barnes said she was unsure about whether she was eligible for government insurance.

“From what I’ve read, it only covers people who have actually started building. Because mine is just a contract stage, I’m not sure,” Ms Barnes said.

“It might just come to the point where if I have to get out of it, and try and get my money back.”

The VMIA provides up to $300,000 in compensation for insurance policies issued after July 2014, including up to 20 per cent of the building contracts for incomplete works and cover for structural and non-structural building defects.

The VMIA and liquidators are yet to determine how many customers are covered by insurance.

Porter Davis currently has more than 1500 homes under construction in Victoria and another 200 in Queensland.

A further 779 customers have signed contracts for new builds.