CHOICELIVING Homes WA has contracted to build three homes in the City of Swan and four homes in the City of Kalamunda, according to administrators Hall Chadwick.
Due to concerns about the builder’s financial status Building commissioner Ken Bowron suspended Choiceliving Homes WA on January 25 while the Building Services Board pursues further action against the company in the State Administrative Tribunal.
Mr Bowron said the company’s suspension triggered home indemnity insurance so affected homeowners in the cities of Kalamunda and Swan could contact their insurer to lodge a claim.
He said customers covered by a home indemnity insurance policy who had paid deposits but where work had not commenced were also advised to contact their insurer.
The interim disciplinary order placed on the builder prevents it from engaging in any activity for which a contractor registration is required until Friday, February 23.
“The company cannot continue with existing projects and must not undertake to carry out prescribed building services for new clients,’’ he said.
After requesting information about the company’s financial position several times the Building and Energy Division said while the company had supplied some information it had failed to allay concerns about its ability to pay its debts as and when they fell due.
Mr Bowron said Choiceliving had said it was in negotiation with a potential investor.
“If the investment comes to fruition and rectifies the company’s apparent financial deficiencies, the interim order can be revoked and the company will be able to resume activities under its contractor registration.
“The temporary suspension of Choiceliving’s building contractor registration will limit further risk to the public, suppliers and subcontractors while the company’s financial status is confirmed.”
“The company is currently ineligible for home indemnity insurance due to a restriction placed on it by its insurer.
“People should not enter into new building work contracts with Choiceliving unless the suspension of its registration is lifted.
“People dealing with the company, including suppliers and subcontractors, should be cautious and only make payments or give credit when the company confirms its financial situation.”
Hall Chadwick senior associate Richard Lawrence said home building customers and creditors should phone the administrator on 6557 6200.
By Anita McInnes