VMIA Insurance Inconsistencies: A Deep Dive into a Shangri-La Construction Inspection Report
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- Опубликовано: 30 июн 2024
- In this riveting and informative video, we take a deep dive into the controversial inspection report of a townhouse development constructed by the now-liquidated Shangri-La Construction RUclips ( • I Inspected A Bankrupt... ).
The inspection, conducted by our team, uncovers a myriad of issues, some of which were surprisingly rejected by the Victorian Managed Insurance Authority (VMIA), causing confusion and frustration for the homeowner.
As we delve into the details, we draw shocking parallels to an inspection we conducted in February 2022 for another collapsed builder. Strangely enough, similar items which were accepted by the VMIA in the past, were rejected in this case. This inconsistency raises several questions about the VMIA's modus operandi.
To make things even more perplexing, we bring to light a letter from a lawyer representing the VMIA. This document contains a major flaw that contradicts the VMIA's own insurance policy, adding another layer of complexity to this already convoluted situation.
Join us as we meticulously unravel the VMIA's response to our report and probe into their intentions. We question why they would accept non-compliant/defective work and highlight the potential repercussions of their decisions. This video not only scrutinizes the actions of the VMIA but also seeks to demand accountability for the homeowner's plight.
Don't miss out on this eye-opening journey as we attempt to expose the truth behind the VMIA's perplexing decisions. Stay tuned and let's uncover the truth together.
👍 Like & Subscribe for More: This may be our last video for the year, but our journey in uncovering the truth in the building industry continues. Like, subscribe, and hit the notification bell for more content in the new year.
💬 We Want to Hear From You: Have similar experiences? Share your stories in the comments. Together, we can raise awareness and demand better standards.
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Развлечения
That screen looks non-compliant. Surely something that big needs an expansion joint.
Do your best and RGB the rest.
😂😂😂
Lol
that screen needs some bracing , non load bearing stand swaying in the breeze
and safety glass
Here in Adelaide I entered a building site and said as a joke, Box gutter Non Compliant. Builder told me to leave.
Point out non compliance at every opportunity.
Well done.
I use the key chain 😂
ofcourse he would, guilty! 😆
Hope Authorities can do something about this, more dodgy builders are getting bolder and bolder because they can get away with non compliance and never get caught.
@danlin8310 any house or builder you suspect.
This guy can check behind any cladding, to see how things are built.
VMIA needs a major audit. They are a tax funded statutory entity. There is ZERO transparency on EVERYTHING they do.
For a master level law paper, I inquired with them regarding their polices about builders with previous issues (disciplinary, previous bankruptcy, phoenix activity etc.), not specific builders, just the general policy so as to avoid privacy restrictions. They flat out refused to disclose their policy at all. My gut is that they simply don't check.They appear to be incredibly careless with tax payer money, then nickle and dime when claims are made by homeowners who had builders who should never have qualified for builders warranty insurance.
As usual a government department with no accountability or care for tax payer money
You are modern day hero in Australian construction for Aussies. Keep it up!
As a tradie this is good to see. Time to make the place more honest and skilled in my mind.
I showed my Mrs your videos, now when we are driving she just randomly says “non compliant” at any new build we go past 😂
Our builder went under in January. Our experience with the VMIA was absolutely horrendous for so many reasons. Please keep shining the light on the VMIA as there needs to be heightened accountability.
I did draughting for thirty years. Eventually I became an estimator for a large building supplies company. I had everyone from reps, architects, builders all trying to get me to cut corners in my quotes. I saved millions of dollars for our company through insisting I quoted things the way they should be done and saw loads of terrible work from poor design work that would have fallen down or wouldn't have supported the loads placed on them. Unfortunately a lot of supposed tradespeople went on and built things poorly. Luckily, the company I estimated for had no claims against them from my quotes. There are some real cowboys out there and watching your channel totally confirms that.
Thanks man. It’s bad out there.
I walked into a friends bathroom and noticed rust on the door frame.
I said “That’s non-compliant. They obviously didn’t install the water stop correctly. “
😂
You are a priceless asset to home owners ! Keep them honest you've got thousands of people behind your efforts, a real Aussie champ
As a builder, code is bare minimum you can’t go any lower than this low standard. Seems those builders thing code is the ultimate pinnacle and they almost reached it in their builds unaware they are performing lower than the lowest standard.
Builder Jeff from Minnesota USA
I think some builders see the Building Code as recommendations only.
Imagine you have a defective house built, it gets signed off by the VBA. It then costs YOU time, money and stress, and then the responsibility is on YOU the owner to get an independent inspector to assess the extent of the dodgy works, this report then goes to the VMIA who reject the claims. Now the responsibility is on YOU to go and get a lawyer and fight not only the builder but the VMIA which is funded by your tax dollars, to get the works rectified. Meanwhile years of your life go by (living in a defective/often unhealthy house), thousands of dollars get spent all because the incestuous industry of designers/builders & inspectors can't or won't do their fucking jobs properly....Sigh!
Hey mate, I've been in construction in Nsw for about 6 years now, the standards of quality within the industry I have seen over the short time I've been in it has been absolutely horrendous. I've worked on multiple multi million dollar jobs and have rarely been on a site in which deadlines have been met or the job hasn't been riddled with defects that ending up costing the builder/client at some point in the future. The work you do exposing these grubs is invaluable and you are such and integral and honest person, please keep doing the things you are doing 👍👍👍
Keep pushing my man, never give up. Every builder I know has got loads of money, they never really truely go bust. It’s our tax paying money that is going towards protecting these jokers!
All the people need to be named and shamed.
The lawyer.
The consultant
And the person who handled the claim.
In my opinion, all insurance companies in Australia are corrupt.
I have worked for an insurance company in building claims and most of the claims we paid out were a result of building defects, they are bound by AFCA decisions who usually favour the customer so no they are not all corrupt.
YES ASIC pretty well showed that 2 years running RACQ etc 880 million ripped from customers BUT no penalties or consequences
Some merch with Non Compliant and Shamoozle on the back
Shemozzle
You are the living embodiment of Be The Change You Want To See. Keep it up!
VMIA needs to be inspected and a report completed to identify all the non-compliant persons working for the VMIA.
We need a Royal Commission of all the building inspectors/ insurers around Australia
@@tictactoe325lots of people need to go
Great work again, what is the point of having these authorities and insurances if they won't enforce the standards. Great to see you are putting pressure on them
Love the channel, and certainly learnt a lot watching you inspect properties. Just wondering if you have, or would upload, a video on an inspection which does actually pass all/most of your checks. Would be nice to see some examples of, in your opinion, good workmanship. Cheers!
I had a house built on the Bass Coast awhile ago, I had a disagreement with the builder over the finish of the timber floors. We agreed that we would accept the recommendation of an “expert”. After the onsite inspection the expert said the finish was ok. I then pulled the standards out and pointed out a few clauses to them. They agreed to re finish the floors.
Well done for standing up against the moorons
LOVE that Your SO PASSIONATE to your work Sir 👍👍👍
The problem is that the building company has gone bust, but the builder will just start up another company and DO THE SAME THING AGAIN! The Government and ASIC are WEAK at dealing with these SHONKY builders! The individuals holding the building licence NEED TO LOSE THEIR BUILDER'S LICENCE FOR LIFE!! This needs to happen to PROTECT INNOCENT CONSUMERS! The Government MUST TAKE ACTION TO RECOVER THE MONEY FROM THE INDIVIDUAL BUILDER! BANKRUPT THEM IF THEY DON'T PAY UP!!
this is a Chinese backed building company. With his govt., what else did you expect !!
truth 100% it's a total rip off and costs people in the future. I just want a safe roof over my head 😢
Phoenixing is what Director Registration is supposed to take care of, but, whether it will actually be used and how it will be enforced is yet to be seen. There is a long tradition of doing it, not just in the building industry.
IMO it is Organised Crime and needs to be treated as such.
You’re absolutely correct!
You’re brilliant my friend. GBU for standing up and helping the people
Perhaps the VMIA need to refresh their technical skills and observe the simple fact that the water stop is an integrated component of the waterproofing “SYSTEM” and therefore a structural element! Good work holding these bottom feeders to account Zeher, your braver than most.
You are doing amazing jobs!, helping people understanding the standard requirement base on laws mandatory and quality requirements national wide in Australia. I watch every videos of your posted. Making vieo contents taken a lot your time and preparation of editting. Much apppreciated!! loves from Victoria-Ballarat
You are an absolute legend. Your knowledge, professionalism, and dogged determination to help home owners and to hold third parties to account is to be highly commended.
Looks at screen you have wants 1 :) Hello from remote rural NSW off grid here and some of my own building work on my property may not be to code ,its a l/ rdg thingy :) My brother moved up here from the coast a year ago and for three months I had to put up with council would never have approved this or that , if anything being a miner I over build. He has come to realise we do things differently from the city folk , just finished a packed tire wall extension on the rear of the house, labor intensive 2 be sure but the tires where free so was the overbear from my mine for packing the tires , used local cyprus pine for verticals and bearers ,only cost was the gal roofing and builders boards for the floor already had the windows and two doors from another project doors I rebuilt with pallet wood making then exterior doors, 54ft x15ft x9ft on project plan ,all a mate at the council ( 70K away) said was make sure I had pics of the foundation tires and if worst came to worst I would have to pay 70 dollars for a building approval. Council up here doesnt care its only if some1 dobs you in , doesnt happen often up here close knit community, but like it was in the 70,s or 80,s people actually care about each other, nice that you care enough to do what you do. But I digress have been told I do that .
Thankful for this page. Doing the work for the benefit of the people. Important as anything. Happy new year mate.
remember that the VMIA is an insurance agency/broker/company, and just like any other insurance company, be they state/federal govt. or private, their mandate is to 'penny pinch'/save money at each & every opportunity. They remind me of the NDIS/NDIA under the Morrison Govt. Many a story would come out where they (NDIA) would spend thousands of $$$ for lawyers at the Administrative Appeals Tribunal after denying a $200 claim for a wheelchair repair/upgrade, or a $500 car modification,.
When you read headlines like "NDIS costing $15 - 20 billiion.." that figure also includes enormous administration costs, govt. lawyer fees ($1000/hr), etc.
The VMIA, like any entity offering insurance, has excellent analytics to assess risk and offer premiums that reflect that risk.
I believe the latest analytics show MASSIVE levels of poor workmanship and dodgy building practices.
As more and more builders declare bankruptcy, the VMIA will have to pick up the pieces.
There is going to be ALOT of claims coming down the pipeline and the MVIA knows it !
Time to play silly buggers and deny as many claims as possible or face MASSIVE cost blowouts ! 👽
It's silly to play stupid though, there will be a list of all the dodgy inspectors soon as I will be building a website to name and shame them all. They better play nice or they won't be able to get a job anywhere soon.
@golbs7542 ❤love your passion. Keep it up 2024 thank you
This builder has done many constructions in Hampton East - in fact they are currently advertising one big apartment complex to be built 300 metres from this property. Now using slightly different name- SLC . I believe it might have also been Marco Polo previously.
The silence in mainstream media is telling. I do hope that this campaign will get picked up eventually and shake things up on a state and federal level.
MSM has no time for nuance and detail and if nothing else this kind of thing is all about detail. There is also the massive lobbying group known as The Master Builders Association. Yep, the MBA is a lobby group for builders, not some kind of guild that ensures any quality control of it's members. So against the claims of a single homeowner or even a group with an inspector and a lawyer they will unleash a well oiled, well funded, professional PR team and the MSM will both-sides the issue to death. Also unlike entertainment TV there would be 6 months or more between updates.
Your videos are so good mate. PS that screen is definitely compliant ha it's wider than my bed room haha. Entertaining and educational and helping out so many people. You are a legend mate.
Glad you enjoy it! ❤️👍🏼🎅
Literally leaving vic. Im a kiwi builder and have never seen such attrocities in my whole career. Victoria needs a restart.
And this is why i purchased a property built in 2002. The property is not built by any mass builder, the building was built by someone who cared about quality, no leaks, installed termimesh. We just had 4 days of considerable storms in qld, nothing leaked exactly how it should be. If im buying a property if never buy from a mass builder they just cut to many corners.
Brother you need Navy Seal Training to save you from the angry builders!.. T-shirt is appropriate LOL
To drop (in on) the VMIA
Love your passion for doing the right thing amongst other things! 🤙🏻
There's no evidence.... because I wasn't looking :)
The builders and inspectors need to start being sued. It’s a bloody disgrace
Mate you're the man! Faith in humanity restored!
Thank you 🙏
I swear to christ if I ever get a home built, I'm hiring you as the inspector for EVERY stage of the build, and having a clause in the contract that states I have to sign off on each phase of building before it can progress.
I'm sure their response will be non compliant
You probably will not find people to do the build. There is a shortage of tradies already now.
You’re a legend bro.
Give this man some money!!!
This company was originally founded in partnership with Larry Kestelman, from memory. He's huge in the business world - started Dodo, huge in property development, owns 94% of the NBL, worth over a billion dollars now. Crazy that we can just let people do this, go into liquidation, start a new company, use the same people for the work and the cycle continues while families fall apart due to the stress.
Nothing like a Christmas shamozzle. Great work this year Zeher. I hope 2024 is even better for you, your family and your team.
Keep up the good work Bro. You're educating noms like myself to the perils of the industry.
I'm about to build my own new home. Your insight is priceless.
I can't stop watching your shows.. 👍👍🍻🍻🍻
What kind of name is Shangri-La Construction? It sounds like a massage parlor?
6:43 This guy is switched on. He knows the difference between "and" and "or" in contract terms. I also learnt that in a contract law unit at Uni.
I am really respecting your passion my friend. Surely if the builder or their lawyer is found to be defrauding, a huge penalty or revoking of licences should be enforced.
I once owned a Shangri-La constructed apartment bought off the plan. Waterproofing issues and loads of other problems throughout the property. Glad I got rid of that one after a couple of years.
Great work yet again, but you got a nice setup mate.
🎉Just B4 Xmas, I was inspecting a roof of a house with extensive non compliance issues with gutters, roof damage and incomplete flashings, leading to structural failure of the upper wall, the house is 18 months old. The builder was working over the road and went and checked out my truck. The stairs in the house 3m high to the 2nd floor are dangerously non compliant as well as other issues with insulation....The builder should be concerned....
Losers use emojis and expect to be taken seriously.
Just a point after many, many years of commissioning and dancing along that legal line… The work was done under the green inked policy, what the lawyer sent is them trying to change the terms of the contract (ignoring their silly typo). Their report can and should be thrown out since according to them the inspection was commissioned under different terms. If it comes to a court date, hopefully you can pass that onto your client.
This case has all the elements of the movie The Rainmaker. Your lawyer will, with persistence, prevail over the beastly VMIA. However, unlike in the movie where Great Benefit Life insurance itself declares bankrupt after Matt Damon defeats it in court, the VMIA has no such out. Stick it up em! Non compliant.
Good from far... but far from good;(
There was a prolific poster from NSW Bob Smith (bloke with corks on his hat) on X a day ago having a whinge about bad contruction habits and the demise of the building industry. Building Inspections got a couple of mentions about doing great work in exposing bad workmanship and dodgy building practices. It needs to be called out and exposed. Well done. Hopefully it leads to something and may need a Royal Commission into exposing the illegal actions. 👍🏻👍🏻
Great channel!
Question is, how can the government "insure" a building without any oversight of the construction?
I personally installed kitchens for this company when they did high rises and I have no idea how they were aloud to run a company the works were pretty scary I’m pretty sure the site is still closed 58 queens pde Fitzroy north
The VMIA are useless, this why building standards are poor because many builders know they can get away with it. This makes it very difficult for the good builders to compete. Sub-contractors need more help in the training and standards for their apprentices if these problems are to be overcome.
Been on site enough the waterproofer is usually 1 dude and they usually don't speak English.
Awesome stuff love your work
huge fan but please volume up
OH MY GOD , LAD THAT IS A SCREEN :) THATS INSANE LOVE IT.
Just regarding the over-flows and sumps not being defects - the NCC has 2 provisions for compliance, 1) a Deemed to Satisfy solution which is in the NCC or VBA guidelines or 2) a Performance Solution which provides adequate performance for the situation. I can't say what has happened here but it is possible that they haven't achieved a Deemed-to-Satisfy solution but have achieved a Performance Solution instead.
No performance solution was undertaken for this site 😊
Fair enough then, regulator being lazy - who'd've thunk it! Honestly, federal level Royal Commission wouldn't be unreasonable, WA is a freaking mess with Builders as well@@Siteinspections
Dean is a good lawyer. This is brilliant exposé on this bs
Non compliant
Yup it's a complete joke of a industry. About to finish an apprenticeship in cabinet making and over the whole apprenticeship learned basically nothing, spent good part of it only driving a truck and unloading kitchen for volume builders and anytime I was building and I asked a question got told to just figure it out on my own, got next to no install experience and I can tell ya, from my experience in most volume builders homes there is no waterproofing behind or under the cabinet. It's all good to say go back to trade school but when trade school says and teaches to do it one way and the whole industry says and teaches it another wat it's understandable why these places are falling part. Even the VRQA or apprentice agencies being made aware don't care apprentice aren't getting trained they get their money either way but still everyone in the building industry crying "can't get good tradesman" or "tradesman now days just don't what to do" no one trains anyone and trade school it's just copy answers in a book (no practical training) or as I've seen alot of apprentice do use snapchat AI to answer the question watch it's gonna get alot lot worse
What's the relevant building surveyor doing to bring the building into compliance? Surely they have a statutory responsibility to issue a building notice and/or order (served on the owner), and rescind any Occ Permits issued. Let's face it, the Act and Regulations are not fit for purpose.
bloody hell mate is that one big monitor or two small one's. holy crap
The rise of user pays .. no more govt inpspectors . Same as RTO's cash for certificates. Some things private enterprise cannot fix
keep it up bro love your channel im not even a builder but love you calling out these cow boys they've been stuffing people around for years
Augmented reality is going to be a nightmare for builders and an amazing asset for clients and inspectors
Damn, thought this was about the shangri-la highrise in Vancouver where a bunch of windows on floors 16-62 were shattering resulting in some glass literally falling off the building and a class action lawsuit.
That change from “or” to “and” was on purpose and is quite obvious because if it was “and” to begin with their wouldn’t need to be a part a) and part b) as they’d be synonymous.
No, not at all. The NCC is full of “and” statements within bulleted clauses. In fact, it’s more common than “or” statements.
Bro..... i'd love to play COD on that screen! haha. Merry Christmas brother.
Can you give updates to this fight with the VMIA?
Where do you find the Australian standards?
Every apprentice should do an integrity of workmanship module each year
we need to bring back quality of work over the shell be right mate work .
Bit of a disgrace what some of our tradies are building for our Aussie home owners
I'd love to but the money is already in my hand so it's the next persons problem. The system works for me. Not the buyer ;(
Thing is, if you're trained properly the first time, you'll only know the right way to do it. They've had bad workmanship ingrained in them so it's hard to change now.
can you keep us posted on their next response, would love to follow through the journey of this "case" to see if logic prevails or if the client ends up losing the case because of "who has deeper pockets"?
My Experience with the VMIA after the collapse of Porter Davis was similar. Minor items accepted. However, items like an external non-protected wooden beam that needed to be rectified? Nah mate, that's not an issue....... All I will say is thank god I am one of the lucky people that actually got a payout after proceeding with my own builder that did not leave me too out of pocket. Too many people got the age old "Oh Simmonds, Metricon or Cecure will finish the house at the original PD contract price" after telling the VMIA that they would proceed with their own builder before getting their quantum decision.
Forget the houses, I want that damn monitor!!!!
Given that even the media has been doing the odd report on the issues surrounding the building industry, it's hard to believe this is simply a one-off case of professional negligence. You don't get to this situation overnight and there's been educational issues (both at a Tafe and University level) along with an erosion in professional ethics (I suspect money or lack of money relative to the effort required for each profession to their jobs sustainably is the big driver here). Unfortunately if the recent royal commissions are anything to go by, fixing systemic governance issues takes years if not decades along with significant devotion to the cause by people like yourself (keep up the good fight as these sorts of issues won't be resolved by silence).
"AND" would have been used in the letter to distract you from the policy. Unfortunately they don't realise you are thorough and highly experienced.
I feel sorry for people that don't understand policies and take the underwriters word as gospel.. poor home owners in this case, not to mention the mental angst!
Unfortunately if there is no proper enforcement of rules and regulations they are disregarded in lieu of profit. If no one is held to account the poor clients suffer terribly. Look at the poor owners of Mascot Tower units . The system is broken. 😢
List of defects can't fit on that screen
And/or is clearly an error on the lawyers half, which is why they say refer to the documentation. In court, the act or legislation/guidelines would apply, not a lawyers reiiteration/copy paste of a section in the guidelines.
Experts used must be competent and hold relevant qualifications. Claims staff ditto. Lawyers will always run claiming they only acted on instructions or (only if caught out) claim that some ‘unfortunate’ error occurred in their correspondence. Not good enough VMIA.
As I thought you find the issues and not all things repaired!
Vmia insurance should become a class action lawsuit for selling a product that doesn’t work
And good job in exposing their flaws the state and federal government really needs to take notice as who will now have the confidence to build a new property
how can you deny a "too low" noncompliant roof-pitch !?!?
As others have said, these guys are insurers. Your awesome video is showing us the insurer playbook: Delay, deny, defend.
Standard practice for insurers where the cost of rectification is high is to delay the claim, deny the claim, defend the claim. Their incompetent response (this is a delay tactic) forces the home owner to bring their own experts at their own cost to counter their bullshit assessments. Some people won't have the money or time to challenge the insurer assessment, so win for the insurer.
It is vital to understand that when facing an insurer like this, that you understand they don't play fair, because that loses them money.
Most people expect fairness in normal dealings. With insurers, unlike almost everything else in life, you can't expect that. You have to fight to get what you are owed against a system designed to minimise paying what you are owed, and that requires experts and good legal advice.
The setup... the system... the monitor... Compliant.
The legal industry has even less oversight than the building industry
“Who regulates the regulators?”
This bloke has the most compliant home in Australia
You seem to know building regulations its a pity the VBA don't.
Can we get a video on your PC setup ? and do you edit all your own videos?
do a video on your computer setup etc
"no ladders no levels" 😂 screamed the building supervisor like an 8yo hahaha what a disaster
The defects are undoubtedly safe and effective, not un-like something else they were deceptive about.
Unfortunately the construction industry especially for domestic
buildings, is rife with non- compliance and this will NEVER change. Unless a house physically falls down, the non-compliant issues will simply be argued away, ignored, lied about and so on and so forth. The so called insurance that builders pay to the government is NOT worth the paper its written on. Each year a few hundred million is paid in BUT very little is paid out as legitimate claims. So the likes of the VBA & VMIA simply hold onto the money. Like the report shown in the video, they simply deny the claim that "it wasnt non-compliant at the time of inspection". You see how bloody sneeky they all are?? Why this situation will NEVER get resolved is because there is a dire shortage of quality trades and builders and because of this, faulty work becomes the norm and people simply have to put up with it. In many cases, it would be better for the owner of the house to learn and study some of the building code as it relates to bathrooms, waterproofing, flashing etc. But of course thats not gonna happen either is it.
What would Victorians know about building, they don’t not even have floor waste in wet rooms!
With Elana Rubin on the board at VMIA, oh and also the Director for Mirvac Group, there is nothing to see here, Keep scrolling people.
Today I learned of the existence of Ned Kelly slots.