VMIA Quantum Decision – Know Your Appeal Rights
For many of the owners caught up in the collapse of Porter Davis Porter Davis, or any builders who have been made insolvent or the subject of a court order, there is a key milestone approaching.
Many owners will shortly receive a Quantum Decision from the Victorian Managed Insurance Authority (VMIA). This is an important step to determining how much each claim will be.
Whether you are affected by the Porter Davis collapse or not it is important to understand your appeal rights with the VMIA.
As discussed in previous blogs, the VMIA are the body that provides insurance to owners that are affected as a result of domestic building works that are either incomplete or defective. In most cases for Porter Davis clients there will be both defective and incomplete works in the claim.
How much each owner will be given to finish their home will vary. This is why the Quantum Decision is crucial. It determines how much money each owner will be given to complete their home.
One crucial factor to understand, is that the Quantum Decision can be appealed. If the level of your claim is inadequate you have 28 days to appeal. The best chance of increasing your claim through a successful appeal is with the assistance of a lawyer with knowledge of the VMIA framework.
All Quantum Decisions should also be separated into two different amounts. One amount for defects and one amount for incomplete work. Both amounts can be appealed.
Key factors to consider before starting the appeal process:
For an incomplete work claim, the maximum VMIA can pay is 20% of the total contract price;
All reasonable legal costs and expenses incurred in making a claim (or a valid appeal) should be paid by VMIA as part of the claim; and
$300,000 is the maximum amount VMIA can pay for a claim (this includes legals costs and expenses)
If after the appeal process is completed, there is an outcome that is still not satisfactory. An owner may have grounds to have VCAT determine the matter. This could include if the amount offered by VMIA is manifestly unreasonable.
Like much of the process, initially this may appear overwhelming. But if navigated successfully, it can ultimately lead to more money to complete your home.
Our Services
Our team at Oldham Construction Lawyers are highly skilled in preparing and advising on all insurance claims for owners.
To understand what you’re entitled to claim, and for assistance submitting a comprehensive and successful claim, please contact our office on (03) 9640 0002, or via email info@oclawyers.com.au