Caught in the Middle: Homeowners’ next steps after Nicheliving’s failure to renew building contractor registration

If you are building with Projex Management & Construction Pty Ltd trading as Nicheliving (Nicheliving), you may have seen the recent press release from the Department of Energy, Mines, Industry Regulation and Safety which states that the Building Services Board has refused to renew Nicheliving’s building contractor registration.

Due to the builder’s failure to renew its building contractor registration, not only is Nicheliving prohibited from entering any new contracts for building works that exceed the amount of $20,000.00, but it is also forbidden from performing any further building work related to existing contracts where the contract price exceeds $20,000.

This is likely to be troublesome news, especially if you are awaiting completion of your project or require rectification works to be carried out by now registration-less builder.

Fortunately, all is not lost!

Under section 25D(1)(a)(ii) of the Home Building Contracts Act 1991 (WA), a compliant home indemnity insurance policy should cover homeowners for losses (excluding indirect, incidental, or consequential losses) resulting from Nicheliving being unable to complete its residential building projects, given that the inability is arising from the builder’s failure to renew its building contractor registration.

That said, it’s important to understand that despite the non-renewal of Nicheliving’s building contractor registration, your contract with Nicheliving may still be valid.

Building contracts will often contain a clause which allows the builder, in this case Nicheliving, to terminate the contract on the grounds that you have taken possession of the property without the builder’s written agreement (usually at clause 22(a)(vi)).

Another common provision in building contracts is a clause which provides that if you prematurely take unauthorised possession of the works, you will cause for practical completion to be reached, and you will begin to bear the risk of the builder’s incomplete works from the date you take possession (usually at clauses 26(e) and 26(f)).

Therefore, taking immediate possession of the property and beginning to assess the cost of completing the outstanding works could lead to a breach of contract and serious financial repercussions if not done in accordance with the proper legal procedures, including by first validly terminating the building contract.

If you are building with Nicheliving, we strongly encourage you to reach out to our experienced legal team who are here to help you navigate through these challenges and to ensure your rights and interests are fully protected.