More than 150 Nicheliving clients trying to claim insurance for incomplete home builds remain in limbo after a marathon seven-hour hearing over the company’s registration status failed to yield a resolution. Lawyers for the embattled builder gathered at the State Administrative Tribunal on Wednesday in an 11th-hour bid to stop the cancellation of its building registration. Nicheliving clients outside the State Administrative Tribunal on Wednesday after the marathon hearing.
Credit: Claire Ottaviano. The Building Services Board ruled not to renew Nicheliving’s registration over its growing debt, which the tribunal was told was now almost double the value of the group’s assets. The move triggered 155 claims from clients trying to unlock up to $200,000 in indemnity insurance to organise the completion of the homes themselves, something the company’s registration had precluded them from doing.
But Nicheliving’s lawyer Martin Cuerden, SC, warned the ruling could also strangle the builder’s only income stream and alleged the company was being “sacrificed”. “If not stayed, the board’s decision will likely result in significant losses for the business,” he said. “If the construction company has its registration refused on the basis of insolvency, that triggers the downfall of the whole group.
” Mr Cuerden claimed allegations by the Building Services Board that the company was unable to pay its debts was “untrue” and pinned the blame for incomplete homes on the state’s construction crisis. “The board’s reasoning that [Niche] were biting off more than [it] could chew because [it] couldn’t do the work - That is the luxury of hindsight,” he said. “It’s been an issue in the industry across the board.
“One cannot fairly infer that because one hasn’t finished those jobs from 2020, it’s because of poor management as opposed to the lack of a crystal ball.” Willetton resident Kathy Ellis told this masthead the tribunal’s inability to come to a timely decision on the registration matter was “a slap in the face”, especially given she had been rendered homeless by the saga. Ellis claims her incomplete Canning Vale home remains in lockup, as it did almost two years ago, with mould now spreading to every room due to water damage.
“I am exhausted,” she said. “I’m going to sleep in my caravan tonight without a heater, so I hope they’re really comfortable with that.” In response to comments by Cuerden that clients could choose to terminate their contracts and change builders, 27-year-old Brayden Munroe told media outside the tribunal that would not be possible without the insurance money.
“We can’t afford to fix all the defects, afford to fix our home and get it to completion,” he said. “The banks won’t give us an extension in the loan to do so, so we’d be completely stuck without [the insurance] kicking in.” More than 200 homes reportedly remain unfinished, but Nicheliving isn’t the only residential builder to have run into trouble.
The construction industry is reeling from a string of high-profile company collapses following a period of building activity buoyed by uncapped COVID stimulus, which drove labour and materials cost hikes at a time when supply chains were constrained, pricing builders out of jobs. It also left behind hundreds of stalled home builds, costing families tens of thousands of dollars in mortgage and rent costs and leaving them in limbo. Start the day with a summary of the day’s most important and interesting stories, analysis and insights.
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