Hundreds of Nicheliving customers stranded as company’s registration stripped

Major Perth residential builder Nicheliving, which has struggled for years to complete homes within a reasonable timeframe, has lost its builder’s registration.

The state’s independent building commissioner, Saj Abdoolakhan, said the Building Services Board was not satisfied Nicheliving’s parent company, Projex Management, had met the financial requirements for registration.

Nicheliving has 236 unfinished homes across the city.

Those customers now have properties in various states of non-completion and facing the prospect of a maximum payout of $200,000 from the company’s mandatory insurance policy.

Some projects are more than four years overdue.

Customers who moved on with other builders have been advised they will not be eligible for insurance. Others have a raft of building defects that have emerged as the properties have been exposed to the elements throughout the seasons.

The loss of registration means Nicheliving can no longer tackle projects valued at more than $20,000 or take on new jobs.

Speaking to API Magazine, troubled Nicheliving customer Kathy Ellis said the news of their loss of registration was actually a relief.

“I am exhausted but so elated that after many months of trying to have them investigated finally we have got there.

“There are tears now but finally we can move forward and try and get our lives back on track.”

Ms Ellis, who is now reduced to living in a campervan with her children while waiting for her Canning Vale home to be built, said it was hoped the builder’s insurance would now move things forward.

Opposition Leader Shane Love said the Building Commissioner had been aware of Nicheliving’s plight for long enough to have acted much earlier.

Nicheliving has faced court action on seven occasions in recent weeks, with more than $280,000 owed to various trade businesses across Perth, on top of owing $3.8 million to the Australian Tax Office.

In a statement released Wednesday (31 July), the Building Services Board said it was not satisfied the company met the financial requirements for registration.

“The Board's decision enables homeowners with incomplete or defective work under home building work contracts with Projex Management & Construction to make a claim on their home indemnity insurance (HII) policies and consider other arrangements for completing their projects,” their statement read.

“The registration and renewal rules provide important consumer protections and bolster the confidence of all participants in WA's building and construction industry,” Building Commissioner Saj Abdoolakhan said.

“Applications are thoroughly assessed to ensure registration is granted only to building service providers who meet a range of requirements set out in legislation (and) for building contractors, this includes the capacity to meet debts as and when they fall due, showing they have the financial means to complete building contracts.”

Mr Abdoolakhan said the Board’s decision will “no doubt be welcomed by many homeowners who have faced significant stress and delays to their projects with this company.”

He said Nicheliving clients should check they have an HII policy in the name of Projex Management & Construction. If so, they should contact insurance provider QBE on 1300 790 723 to discuss arrangements.

HII is purchased by builders and protects homeowners by providing up to $40,000 for a lost deposit and up to $200,000 to enable building work to be rectified or completed if the builder faces circumstances including loss of registration on financial grounds or insolvency.