Building collapse, page-4

Trouble is these builders, well they're not builders as such but project builders which subbie everything out and that is part of the big issue.

They have a sales office that sell you their plans so everything is at a sqm costing plus fixtures.

The salesman sold all these fixed priced contracts to which the owners all paid the deposit and the money was flowing, then in the midst of covid the prices started to rise rapidly and shortage of supplies.
Then the forward paid deposit money was being used to finish off the uncompleted houses in arears and then all of a sudden there is no money left to complete all the homes on the books with no money left and owners have nothing.

There is a house just 200mtrs away from where we live and was build by one of these builders gone bust and is 90% completed and there it has sat for the last 12 months like that. These people own the land but the builders own the house and possible borrowed all the money to get to this position and really have nothing.

A system or insurance as you say would be open to more misuse especially to home owners by builders that can manage their company better.