After Nicheliving debacle, WA is finally beefing up building watchdog powers

19 hours ago 5

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The West Australian government is drafting new laws to beef up the powers of the state’s building watchdogs to probe and act on financially risky builders.

Commerce Minister Tony Buti announced the new laws in the budget estimates hearing on Wednesday, referencing the trouble experienced in the sector in the past few years.

The weakness of the Building Services Board and building commissioner to act on financially troubled businesses was a huge issue for customers of home building companies like Nicheliving and Inspiration Homes.

Nicheliving customers had to fight for more than 18 months for the company to be deregistered to access indemnity insurance, but were blocked when Nicheliving fought it in the State Administrative Tribunal.

The new bill will give the Building Services Board and Building Commissioner the power to investigate financially troubled builders and impose conditions or cancel their registration, which would mean earlier intervention and access to indemnity insurance for customers.

Buti told the hearing the government had noticed in the past two years the lack of powers regulators had to deal with builder collapses.

He said organisations in the sector and major builders supported the move.

“The changes [will] provide greater powers to the regulators to compel builders that we think may be in financial trouble to present their financial documents that attest to their financial situation,” he said.

Buti said the government will also begin a review of laws that governed home building contracts which would be led by his parliamentary secretary Dan Caddy.

“To ensure home building contract laws keep pace with changes and challenges in the sector, stakeholders will have the chance to provide feedback during the review,” he said.

Nicheliving’s construction arm agreed to withdraw a State Administrative Tribunal battle for the renewal of its building licence for the next decade under a deal with the state government.

More to come.