In short:
Perth home builder Nicheliving is legally unable to carry out construction works in the absence of a nominated supervisor.
The builder still has more than 200 incomplete homes and has an outstanding tax debt of almost $4 million.
What's next?
Nicheliving says it intends to appoint a replacement supervisor.
Embattled Perth home builder Nicheliving has suffered another major setback after losing their legal ability to undertake construction works, in news that will leave dozens of customers frustrated.
Western Australia's building regulator confirmed Nicheliving's parent company Projex Management and Construction no longer have a nominated supervisor, which is legally required for any registered building contractor to operate.
Without a nominated supervisor, Nicheliving still remains registered but cannot carry out building works that are valued above $20,000 and require a building permit.
A spokesperson for the Department of Energy, Mines, Industry Regulation and Safety said Nicheliving has advised it intends to appoint a new nominated supervisor.
Housing Industry Association WA executive director Michael McGowan said Nicheliving's ability to find a replacement would depend on their relationships within the industry.
"Obviously, a company will go through a recruitment process to find a new nominated supervisor [and] there may be people in industry looking for the next opportunity that may wish to take on a piece of work," he told ABC Radio Perth.
Mr McGowan said the situation was not uncommon, but big companies often had more than one person to take on the role.
"They'll tend to have two or three people who have their builders' practitioners license so that they can step in to take over if that person chooses to leave and go and pursue other opportunities," he said.
WA Treasurer Rita Saffioti said the development was concerning.
"There's some discussion being had between the relevant building authority and Niche currently, [but] we're very concerned in relation to the conduct of Niche more generally," she said.
Cost recovery claims
The news is the latest setback for the troubled builder, after a credit check last week revealed it had been issued a notice by the Australian Taxation Office for almost $4 million.
Earlier this month, Nicheliving notified the state government that it still had 236 homes unfinished, leaving many of its customers in financial distress and close to homelessness, with many homes years past their scheduled completion dates.
The state government has also revealed there have been 73 official complaints made to the building commissioner about the company since January 2022.
According to a Creditor Watch report, seven separate court actions have been initiated against Projex Management and Construction since June 5.
They include cost recovery claims by Hoist WA and Precision Trades for nearly $30,000 each and Osborne Park Flooring for just over $41,000.
Joondalup Centa have been chasing a civil debt recovery of more than $84,000, while just last week, Metwest Steel initiated a court action for $56,500.
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