Nicheliving homeowners stranded. Perth construction firm Nicheliving has been unable to renew its registration, preventing the company from finishing any projects needing a building permit. This decision follows the disclosure that Nicheliving has over 230 incomplete homes.
Additional investigations are underway, including an inquiry into whether Nicheliving secured insurance policies for new builds while they were supposed to prioritise existing projects.
A Perth construction company with over 230 incomplete homes, Nicheliving, has been denied the renewal of its building contractor registration, plunging customers into further uncertainty.
In a meeting held yesterday, the WA Building Services Board decided not to renew the registration of Projex Management and Construction, the company behind Nicheliving.
This decision prevents Nicheliving from performing any work that requires a building permit or entering into new contracts, leaving hundreds of customers in a difficult position and potentially only able to recover a maximum of $200,000 from the company’s mandatory insurance policy.
Board Expresses Lack of Confidence
Commissioner Saj Abdoolakhan stated that the primary concern for the board was the company’s financial situation.
“We’ve thoroughly reviewed the finances and provided the company with multiple opportunities to submit additional information, which my team has meticulously examined.
“Ultimately, the board was not convinced that Projex could comply with the legislative requirements, specifically that it could settle its debts as they came due.
This situation aligns with the definition of insolvency under the Corporations Act and raises questions about whether Nicheliving engaged in unlawful trading while insolvent.
Signs of Strain Emerge
Earlier this month, Nicheliving announced that it had chosen to refrain from taking on new projects in order to “ensure we meet our current obligations.”
“In the past few weeks alone, we have completed 26 homes, with many more on the way,” the statement read.
“We recognise the importance of finishing each build and are committed to achieving this goal for our customers.
“Our team is tirelessly working to ensure every home is completed for our clients.”
What Will Become of the Unfinished Homes?
Under the Home Builders Contract Act 1991, WA builders must obtain home indemnity insurance (HII) for residential construction projects valued at over $20,000.
Nicheliving’s building contractor registration has not been renewed by the industry’s regulatory board, leaving Nicheliving homeowners stranded. When a builder’s registration is revoked, the HII policy can cover up to $40,000 for a lost deposit or $200,000 for completing or rectifying works.
Nicheliving clients with HII policies under Projex Management and Construction are encouraged to reach out to insurance provider QBE.
How we can assist
Master Building Inspectors (building inspections perth) can offer crucial assistance to Nicheliving clients in several ways:
- Assessing Property Conditions: They can conduct detailed inspections of the unfinished homes to assess their current condition, identify any structural issues, and determine the scope of work needed to complete or rectify the projects.
- Estimating Costs: Inspectors can provide accurate estimates for the cost of completing or repairing the homes. This information is vital for clients to understand the financial implications and make informed decisions.
- Insurance Claims Support: They can assist clients in navigating the insurance claims process by providing detailed reports and documentation required by insurance providers like QBE. This helps in ensuring that claims are processed smoothly and efficiently.
- Liaising with New Builders: Inspectors can help clients find and communicate with new builders or contractors who can complete the work. They can also ensure that new builders are aware of the existing issues and requirements.
- Ensuring Compliance: They can ensure that any work completed meets the necessary building codes and regulations, safeguarding clients against future issues.
- Providing Expert Advice: Inspectors can offer expert advice on how to proceed with unfinished projects, including recommendations for repairs.
By leveraging these services, Nicheliving clients can better navigate the challenges of unfinished construction and work towards resolving their issues effectively.
Contact building inspectors Perth today!