Builders have been secured for more than 200 properties left in the lurch when Melbourne-based Watersun Homes went bust.

More than 400 homes were left in various pre-contract or contract stages when the Victorian arm of Watersun went into administration a month ago.

Mega Homes, VM Builders and Ric Jelfs Custom Homes have been secured to complete about half the properties, administrators Rodgers Reidy say.

With the remaining properties, either the contracts had been terminated by the owners or a builder could not be secured to complete the homes, Rodgers Reidy director Mathew Gollant said in an email update.

Those owners will have to find their own builders to complete their homes.

About 90 full-time jobs were lost as a result of Watersun closing.

Mr Gollant advised once the company is in liquidation, employee claims will be verified through a federal government entitlements scheme.

Claims usually take 10 to 12 weeks to be paid.

By Kaitlyn Offer
  • This is useful for those for whom new builders have been found but is an awful situation for those for whom no builder has been found.

    No one should have to go through that.

  • Somebody needs to go to jail . Again that this can occur in 2017 is an indictment on those who legislate and regulate the industry in Victoria .
    Why are directors allowed to appoint their own liquidators – creditors should have moved to remove them at the first creditors meeting . The system is very wrong.

    The building industry is Australia's greatest shame and every " peak industry association" should shoulder the blame .
    They have damaged every sector of the industry .

  • The "owners will have to find their own builders" a big problem. Where is the 'junk' BWI insurance? nowhere mentioned and not to be claimed – even though insolvency is one of the few triggers! This shows up the chaotic construction industry, designed to be so and how it throws all the innocent victims to limbo and loss. No-one ever wants to take on half-finished and defective building projects – a can of worms! So these people will be facing traumatic nightmares. As for the subcontractors, they have all lost their work, money owed and many will now have to lay off staff – and some of these employers and their workers will end up broke. Ditto Les Williams: shame on all those to blame.

  • As you all say, the situation is awful for so many workers and sub-contractors and for many of the home owners with their DPBWI or standard Domestic (Pathetic) Building (Warranty) Insurance. Victorian Government hang your head in shame for this tragedy largely caused by your inadequate auditing of builders to prevent bankruptcies, and your basic insurance offered to new home owners… insurance which should IMMEDIATELY be returned to what it was before July 2002 when builders had to answer to the insurer for breaches of regulation, registration and poor workmanship. BRING IT BACK NOW.