New South Wales scheme overseen by

Office of Fair Trading and operated privately by Suncorp/Vero Insurance Company

Queensland scheme operated by the Queensland Government through the

Building Services Authority

Last Resort

Max P/out $300,000 but limited to 20% of the original contract value for

non - completion

First Resort

Max P/out $400,000.00 No limits! and includes the effects of subsidence or settlement

Responsible Minister: Fair Trading

The Hon. Linda Jean Burney

Responsible Minister: Housing Minister

Robert Schwarten

14^th May.

Minister Burney urged clients of Beechwood not to panic following the news the company had gone into voluntary administration.

Ms Burney said the administrator will know in 2 or 3 weeks time if they can find another builder to complete projects or return deposits.

If they canít then builders will be able to lodge a home warranty insurance claim.

9^th Feb.

The BSA opened across the weekend with 26 staff to contact affected consumers and advise them BSA administers an insurance fund (called the ìQueensland Home Warranty Schemeî) which provides a benefit for specified losses associated with a contractorís failure to complete a contract.

If work has commenced, the insurance benefit is, (subject to the terms and conditions of the policy), equal to the cost to complete the works, less any moneys you are still holding under your contract.

If work has not commenced, the insurance benefit is limited to, (subject to the terms and conditions of the policy), a refund of deposit paid.

15^th May.

Vero has recognised the company as insolvent following the appointment of a receiver.

Vero regards this as the trigger for consumers to lodge claims for home warranty insurance a claim under the Home building Act

16^th May.

Minister Burney calls for calm

ìIt is important that anyone with a contract with Beechwood Homes does not cancel it.

ìProgress is being made to find a buyer to take over the Beechwood contracts.

ìIn the event that Beechwood is not sold, the home warranty insurer Vero has indicated that it is ready to get on with the job of having the homes completedî. 

26^th May.

Ms Burney said that Vero has sent claim forms to all Beechwood Homes policy holders last week.

ìMy office has been in contact with Vero about having these claims processed as quickly as possible,î Ms Burney said.

2^nd June

I know that the families who have suffered from the collapse of Beechwood are experiencing awful stress,î Ms Burney said.

ìI want to reassure people that rectifying the situation will take a bit more time but it will get sorted.î 

3^rd June

Beechwood victims told to wait

VICTIMS of the collapsed building company Beechwood Homes face a further three- to four-week delay in the resumption of construction of their homes because ...

Buyers line up for Beechwood

6^th May.

 About 70% of clients affected by the failure of Sunshine Coast-based Real Property Constructions have had their homes completed or deposits refunded.

Mr Schwarten said all 207 complaints received by the Building Services Authority about RPC had been assessed and 140 finalised. ìThere are 35 jobs currently out to tender and another 13 have been sent to quoting builders,î he said

ìHomeowners affected by RPCís collapse just three months ago, the BSA has done a great job in finalising about 70% of peopleís claims.î

Mr Schwarten said the value of claims under the warranty insurance scheme to date was $1.9 million.

24^th May

Beechwood home buyers told not to pay progress payments 

Ms Burney criticised the receiver for issuing progress payment bills to home ownersÖÖ

Pay up or else, victims told

Consumer meeting Anguish hits home ÖÖ.

No one to call when roof falls in

The controversy over "worthless" mandatory home building warranty insurance ragesÖ..

NSW govt's Beechwood handling under fire

Insurance threat driving builders away

Bills stop for builder's victims

31^st May

Beechwood bell tolls for everyone

One South Coast concreter and a plumber are owed $500,000 eachÖÖÖ.

Questions over $200000 claim paid to Coonan

9^th June

Senate attacks housing's 'junk insurance' scheme

With the HIAís Ron Silberberg dismissing the inquiry as a "kangaroo court".

Rebuff for Senate on building insurance

10^th June

Hundreds more may be hit by collapse

Being those 580 that were having plans done at a cost of between $2,500 & $5,000 by Beechwood but without a contract or warranty in place so no insurance applies

11^th June

Choice urges states to overhaul home warranty insurance

19^th June

Receiver rejects call to release home plan

VICTIMS of the Beechwood Homes collapse seeking to cut their losses and start from scratch have been told by the company's receiver they do not own the house plans they have paid for.

6^th May 2008

http://www.thedaily.com.au/news/2008/may/06/relief-clients-rpc/ 

About 70% of clients affected by the failure of Sunshine Coast-based Real Property Constructions have had their homes completed or deposits refunded.

6^th July 2008

Beechwood sale still up in the air

UP TO 1000 families and builders remain uncertain about the future of collapsed builder Beechwood Homes.

12^th July 2008

Beechwood homes victims get ray of hope
Sydney Morning Herald
HOME OWNERS and creditors connected to the collapsed housing company Beechwood Homes were given a flash of hope yesterday with an administrator's report ...

21^st July 2008

Beechwood sale deadline not today: Govt
ABC Online - Australia
The New South Wales Government has rejected reports collapsed building company Beechwood Homes will be liquidated if it is not sold by close of business ...

28^th July 2008

Beechwood Homes site reopens for business
Sydney Morning Herald
Beechwood Homes's site at HomeWorld in Kellyville was reopened for business yesterday..

29^th July 2008

BEECHWOOD Homes, the collapsed NSW home-builder, has been sold to a family-owned business, Cavasinni Constructions.

Beechwood receivers Deloitte today said the business had been sold for an undisclosed amount with all assets, including existing land, buildings, contracts and copyright.
It will be sold as a going concern to Resibuildco, which will be funded by Cavasinni Constructions and the Cavasinni family.
The business will continue to trade as Beechwood.

30^th July 2008

Beechwood homes in new hands
Sydney Morning Herald - Sydney,New South Wales,Australia
... half-built homes has come with confirmation that Cavasinni Constructions has bought the assets of the collapsed project-home building company Beechwood.

Now that Beechwood has been sold it would appear the warranty insurance scheme will not/may not apply in this instance and the homes will be finished under the existing contracts. If this is the case that may be a great scenario for the consumers if their homes are finished for the original contracted price, however that outcome remains to be seen.

The QBSA failure on the 8^th Feb 2008 saw the instant implementation of their first resort warranty scheme and after only 12 weeks saw 70% of consumer claims satisfied. This is the scheme we have been advocating since the HIH collapse.

In an industry big enough that we measure the fiscal health on the nation on we are being made look as though we are all a bunch of rat bags, incapable of managing our industry and providing basic consumer protection in a timely manner such as the holistic Qld scheme.

Both NSW and Victoria jointly introduced this BWI scheme back in 2002 and appear to have an obsession to maintain the status quo in the face of overwhelming evidence of its failure to provide anything like appropriate consumer protection let alone anything that resembles reasonable industry management so it would appear there can only be one conclusion and that is that others are benefiting from its being.

The responsible NSW Minister is the Hon. Linda Jean Burney who has stated on numerous occasions that NSW has an effective consumer protection framework which delivers protection for consumers who are faced with the collapse of their builderís company.

Thank you Minister, but where is the effective warranty insurance protection?

The Current Senate inquiry should represent both the consumers and builders of this nation in this most serious of matters that has seen suicide, financial failures, and family breakdowns suffered by thousands of Australians, and yet the major supporters of the current arrangements number only 2 from the big end of town being Vero Insurance and the Housing Industry Association and they have refused to appear before the Senate inquiry with the latter referring to the process as a kangaroo court.

This vexed and controversial issue has seem 35 inquires and reviews over the past 10 years plus the Productivity Commission inquiry handed down recently that described this warranty as a running sore and now we have the Senate Inquiry that as yet has not compelled the two pivotal players to appear before the committee at a public hearing.

The Builders Collective of Australia (BCA) is the amalgamation of all the various groups around the nation that formed in 2002 to fight the introduction of the Last Resort scheme  and consisted of the NSW Be-Fair builders group, the Builders Collective, Home Warranty Action Group (HWAG) from the Illawarra region, the Central West Home Builders Scheme (CWHBS) from Orange, and The Housing Indemnity Action Group (HIAG) together with the Builders (WA) mutual Fund Limited (BMFL) both from Perth which had preliminary approval from the WA Government for this proposed Mutual at this link www.buildersmutual.com.au

The Builders Collective of Australia

Working for a better Building Industry

0414 699 905