On 30 July 2024 the Building Services Board (Board) decided to refuse Projex Management and Construction Pty Ltd's (Nicheliving) application to renew its registration as building contractor under the Building Services (Registration) Act 2011 (Registration Act). The Board was not (among other things) satisfied that Nicheliving met the financial requirements for registration. As a result of the Board's decision, Nicheliving lost the right to operate as a registered building contractor.
The Registration Act provides that a decision by the Board to refuse an application for renewal of registration can, on application, be reviewed by the State Administrative Tribunal (SAT). On 2 August 2024, Nicheliving lodged a review application with the SAT and sought an urgent stay order to pause the effect of the Board's decision.
On 23 August 2024, following an application from Nicheliving, the SAT issued an order staying the effect of the Board's decision to refuse Nicheliving's renewal application.
The Board and the Government opposed Nicheliving's stay application in the SAT, arguing that it was not in the public interest for the decision to be stayed. Building and Energy acknowledges that the SAT's decision will be disappointing for customers who have been waiting a considerable amount of time for their home to be completed.
What is the effect of the staying order?
Nicheliving's registration is re-instated pending the outcome of the review. This allows Nicheliving to operate as a building contractor while the review is ongoing.
What happens next?
The SAT has directed Nicheliving and the Board to engage in mediation to attempt to settle the matter. A mediation conference has been scheduled for 30 August 2024. Mediation is a standard part of the process that precedes a final hearing on the matter.
The SAT has also set aside five days, starting on 20 November 2024, for a final hearing. If the matter goes to a final hearing, the SAT could:
- affirm the Board's decision;
- vary the Board's decision; or
- set the Board decision aside and either:
- substitute in its own decision; or
- refer the matter back to the Board for reconsideration.
What does this mean for Home Indemnity Insurance (HII) claims?
It is highly likely that the SAT's order will impact the HII claims process and consumers will no longer be able to progress their claims.
QBE will be contacting impacted Nicheliving customers who have started the claims process, to provide guidance and will be updating the general guidance on the website it established for Nicheliving customers.
We strongly encourage homeowners to seek independent legal advice specific to their circumstances if they are considering taking any further action relating to their contracts with Nicheliving.
Can I continue make a building service complaint and/or home building work contract complaint to the Building Commissioner?
Yes.
The SAT's decision means that Nicheliving remains a building service contractor for the time being.
Building service and/or home building work contract complaints can continue to be lodged with Building and Energy. Further information can be found on Building and Energy's dispute resolution webpage.
