Victoria has pledged to pay out approximately $15 million to nearly 600 families affected by the collapse of home builder Porter Davis. 

Victorian Premier Daniel Andrews announced the initiative, stating that the government will establish a website for 560 families who paid for a deposit on a build that was never commenced by Porter Davis. 

The affected families can apply to be compensated after the builder took insurance money but failed to pass it on. 

The payouts will average about $25,000, with a full refund up to five per cent of the purchase price.

Mr Andrews condemned Porter Davis, stating that the builder “quite shamefully” failed to forward the insurance money. 

He said that people have worked hard for years and that their home is the biggest purchase in their life. He also stated that the government is providing these people insurance as if they had a policy. 

There is also an unknown number of families whose insurance is not recognized on a build that has already commenced. The state government is working on a response for them.

Meanwhile, customers of collapsed home builder Porter Davis were offered a panel of about 15 to 16 alternative builders that could complete their homes. 

Grant Thornton liquidator Said Jahani told reporters that they have been contacted by about 100 different builders, from small to large, and will come up with a shortlist of 15-16 builders. 

A “communication” will be issued to Porter Davis’s customers on Friday, providing details of the builder options available to them. 

About 1,700 homes, most of them in Melbourne, have been left in limbo by the failure of one of the country’s largest home builders. 

A further 779 customers signed contracts with Porter Davis before its collapse on March 31. 

Grant Thornton last week said no viable offers had been made to acquire the entire Porter Davis business and takeover construction of all unfinished homes. 

Mr Jahani said a “short update” on the liquidation process would be provided in the coming days. He added that a number of sales of Porter Davis business units were close to being finalised.