Eligible claims made to VMIA BWP will be assessed in accordance with the House Contracts Guarantee (HIH) Act 2001 and the House Contracts Guarantee (HIH Further Amendment) Act 2002. The general process will be as follows:

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Defects:

• The owner submits a claim form, with requested documents;
• VMIA BWP will assess the claim under the provisions of the Act;
• VMIA BWP will investigate whether there is a valid claim under the builder's insurance policy issued by FAI/HIH. If so, an inspection may be carried out and the builder will be invited to attend;
• On the basis of the Inspector's Report, VMIA BWP will make a decision and advise both parties. The decision may be to accept or reject part or the entire claim. Both parties can appeal this decision within 28 days from the date of receipt of VMIA BWP's advice to the Victorian Civil & Administrative Tribunal (Domestic Building List) referred to as VCAT;
• If the claim is accepted, the builder will be instructed to rectify any defects caused by bad workmanship. If the builder does not rectify, the owner will be asked to obtain quotations from builders registered with the Building Practioners Board. If VMIA BWP accepts the quotations as reasonable, both parties will be advised of the cost to rectify. Again both parties can appeal this decision to VCAT within 28 days from the date of receipt of VMIA BWP's assessment;
• At the expiration of that time, an approval letter will be sent to the owner, enabling the owner to have the works completed by others;
• When the works are complete, the owner should forward a copy of the tax invoice (showing the contractor's ABN and GST amount) and, via a cheque, VMIA BWP can reimburse the owner or pay the contractor directly on the owner's instructions. Progress payments can be made in certain circumstances.
• The owner should be aware that any attempts to rectify defects prior to the completion of the assessment process is at the owner's risk.
• Please note that the maximum indemnity available from VMIA BWP, inclusive of incomplete works, is $100,000.

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Incomplete Domestic Building:

• The owner submits a claim form, with requested documents;
• VMIA BWP will assess the claim under the provision of the Act;
• If the claim is endorsed to proceed, an inspection will be carried out to assess the status of the dwelling;
• On the basis of the inspection report VMIA BWP will make an assessment and request that you obtain two quotations from other approved builders to complete the dwelling to the stage contained in the original building agreement;
• On advice that your claim has been approved, you will need to sign a contract with the new builder and forward a copy of same to this office together with a payment schedule;
• Should you disagree with our assessment you may lodge an appeal;
• The owner should be aware that any attempts to rectify defects prior to the completion of the assessment process is at the owner's risk.
• Please note that the maximum indemnity recoverable for incomplete works is 20% of the original contract price up to a maximum, inclusive of defects, of $100,000.
• Cheques will be forwarded on provision of a tax invoice showing the particular stage reached.

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