Nicheliving ruling leaves hundreds of disgruntled customers in limbo
Hundreds of customers of troubled builder Nicheliving had been planning to have their homes completed through an insurance back-up but those hopes have been thrown into confusion.
A lifeline thrown to embattled Perth builder Nicheliving has stirred up a mix of despair and hope among the company’s 155 disgruntled customers.
Western Australia’s State Administrative Tribunal (SAT) overturned an earlier decision by the Building Services Board to cancel the company’s registration, which had effectively stopped the company from completing any outstanding projects.
Hopes the company might now tackle its years-long backlog of residential home builds have been offset by the concerns of many customers that they will not be able to unlock home indemnity insurance that would’ve allowed other builders to step in and finish their homes.
The stay will remain in place until a full review of the regulator’s decision is complete.
The SAT had heard more than 200 homes are yet to be finished.
Former accountant and Nicheliving customer Colin Such expressed concern to API Magazine that home indemnity insurance might now not be able to be claimed, at a time when faith in Nicheliving being in a position to finish the work was also low.
The latest hearing revealed Nicheliving had nearly $44.2 million in assets and $76.2 million in debts and loans.
“These numbers and other issues lead me to believe it’s just a matter of time until they go into administration/receivership,” Mr Such said.
“Nicheliving on occasions did not pay its subcontractors or suppliers and I know superannuation was not paid in a timely basis to some employees.
“It let many of its trades employees go on the day it was deregistered and may not get them back, and it may not be able to get other subcontractors back.”
Customers have indicated they are hoping to receive clarification from insurer QBE within a week.
Tribunal still harbours Nicheliving doubts
Martin Cuerden SC, representing Nicheliving, told the tribunal the majority of contracts Nicheliving had entered into had been completed, particularly those from 2022 and 2023. He told the tribunal the issue was the 2020 contracts, and “to a lesser extent” 2019.
In granting the temporary stay to prevent Nicheliving losing its licence, tribunal president Justice Kathleen Glancy said the decision was underpinned by concerns the permanent cancellation of Nicheliving’s building registration would significantly impact its financial position.
But she also expressed serious doubt the company would overcome the backlog of unfinished work.
“We note the distress, inconvenience and financial hardship (experienced by customers) as a result of their construction homes having taken so long, and we do not overlook that distress and financial consequence a stay will have on those customers,” Ms Glancy said.
“We are certainly far from convinced the timeframe to complete homes will be achievable if it is able to continue its operations.”
The tribunal's president added that Nicheliving had undertaken not to take on any new contracts.
For Mr Such, the pain continues.
“In our case, in January 2022, we contracted for a second storey extension built off site and craned in.
“Nicheliving have done significant damage to our home, as the roof was left with unsecured tarpaulins for four months as they removed part of our roof in error.
“Water damage has happened and is still happening a year later as we are not watertight.
“Completion, contractually, should have been in 21 months maximum and we are now 31 months and still a way to go.”
The tribunal is expected reconvene on 20 November for a five-day review.
