G’day, folks! I’m Russell McCarthy, the lead building inspector and founder of WA Building Inspections in Perth. Today, I want to talk about a crucial issue facing many soon-to-be homeowners in Western Australia –  or so they thought they were soon-to-be homeowners: the financial crisis at Niche Living. You may have heard that a large builder Niche Living in trouble. They are very likely going to go into liquidation. Looks like we have a new lucky contestant into the bad builders register. For their customers, they have been left with bills piling up and homes left incomplete, it’s a dire situation for many across Perth. In this article, I’ll provide some guidance on how to navigate these challenges and protect your investment. Let’s dive in!

Understanding the Niche Living Crisis

Niche Living has long been a respected name in home building here in Western Australia. However, over the past year, they’ve encountered severe financial troubles, owing millions to creditors and leaving many homes unfinished. This has caused significant stress for homeowners who trusted them to build their dream homes.

Current Issues Faced by Customers

Many Niche Living customers are facing financial hardship due to delays in completing their homes. Imagine paying for something that’s not finished – it’s a tough pill to swallow. These delays mean customers are stuck with mounting bills and incomplete homes. The root of the problem is premature stage payments, which means customers are paying for work that hasn’t been done yet.

Importance of Stage Inspections

Now, more than ever, stage inspections are crucial. They ensure that each phase of the construction is completed properly before any payments are made. This step is essential to protect your investment and avoid paying for incomplete or substandard work. The customers of Niche Living in the photo above

Steps for Existing Niche Living Customers

If you’re one of the affected Niche Living customers, here’s what you need to do:

Get a Stage Inspection Immediately

The first step is to contact a qualified building inspector. “At WA Building Inspections, we’ve seen firsthand the benefits of stage inspections. They’re a vital tool for ensuring your home is built to standard and to ensure you only pay the builder when the works are complete and up to standard,” I often say. An inspection will provide you with a clear picture of the current state of your home.

Review the Findings

Carefully examine the building inspection report. If the work is incomplete or defective, do not make any further payments. “It’s essential to act on the findings of the inspection report to safeguard your financial interests,” I advise my clients.

Report Non-compliance

If you find non-compliance, this stage inspection report arms with evidence to take to the builder to get them to rectify the problems. If they refuse, report it to the relevant authorities and seek legal advice. “Don’t hesitate to seek legal recourse if you discover any discrepancies that the builder won’t fix. Your home is your biggest investment, and it’s crucial to protect it,” is a piece of advice I frequently share.

General Advice for New Home Buyers

For those of you planning to build a new home, take note: always schedule construction stage inspections in Perth. Here’s how you can protect yourself:

Schedule Inspections at Every Stage Before You Pay

Conduct stage inspections by trusted building inspectors at every stage of the build. “stage inspections can help catch issues early before they become major problems, and ensure the builder needs to rectify their defects” I always tell new home buyers.

Hire Independent Building Inspectors

Ensure your building inspector has no ties to the builder. “An independent inspector provides an unbiased view of the construction quality,” I recommend. This helps ensure that the inspections are fair and accurate.

Ensure Transparent Contracts

Your contract should specify the conditions under which payments are made. “A transparent contract is your first line of defense against potential issues,” I remind clients. Make sure that payments are tied to the completion of specific stages. Read our detailed guide about how to choose a builder in Perth.

Detailed Guide to Conducting Stage Inspections

Conducting stage inspections involves a thorough review of the construction work completed at various stages. There are 6 key stages of a new construction, all of which you should have a stage inspection performed.

Common Issues Identified in Inspections

During stage inspections, common issues that may be identified include:

Structural Defects

Cracks or misalignments in the foundation and framing. “Structural defects are not just cosmetic – they can affect the safety and longevity of your home,” I caution. The causes are sometimes hard to detect after the construction is complete. For example. rising damp causes serious structural problems over time, but if you don’t detect the cause at the time of the construction, you may never find how moisture is entering the building from the foundation.

Non-compliant Installations

Improperly installed roof pitch, plumbing or electrical systems. “Non-compliant installations can lead to costly repairs and potential safety risks,” I point out. Always ensure these systems are up to code.

Poor Workmanship

Visible flaws in construction quality. “Poor workmanship can diminish the value and livability of your home,” I stress. Look for signs of shoddy work and insist on corrections.

Legal and Financial Actions

If you discover non-compliance or incomplete work, consider the following actions:

Seek Legal Counsel

Understand your rights and options for recourse. “A good lawyer can help you navigate the complexities of construction law and protect your interests,” I recommend.

Contact Consumer Protection Agencies

Report the builder for non-compliance. “Consumer protection agencies are there to help you – don’t hesitate to reach out,” I advise.

Don’t Pay

Avoid making further payments until issues are resolved. “Hold onto your money until you’re sure the work is up to standard,” I often tell clients. This helps ensure that you’re not paying for incomplete or substandard work.

Could This Have Been Avoided?

In my experience, many of the issues faced by Niche Living customers could have been mitigated with regular stage inspections. It’s a small investment that can save you from significant financial loss and stress. The strategic inspections can help catch issues early before they become major problems.

Additional Resources

For more information and professional advice, consider my recent articles:

• • Uncovering the Hidden Dangers: https://wabuildinginspections.com.au/uncovering-the-hidden-dangers-russell-mccarthys-channel-9-interview/
  • Building Construction Inspections: https://wabuildinginspections.com.au/building-inspections-perth-costs-services/building-construction-inspections-perth/
  • Book a Stage Inspection from our 3 branches across Perth:
    • WA Building Inspections Perth
    • WA Building Inspections Rockingham to Mandurah
    • WA Building Inspections Midland

My Final Word

The Niche Living crisis shows the critical importance of stage inspections in the home building process in Perth. By taking proactive steps, both existing customers and future buyers can protect themselves from financial and structural risks. Always ensure that each stage of your home build is inspected and compliant before making any payments.

FAQs

1. What is a stage inspection?
   • A stage inspection is a thorough review of the construction work completed at various stages of the building process. It helps ensure that each stage is up to standard before moving on to the next.
2. Why are stage inspections important?
   • Stage inspections are crucial because they help catch issues early and ensure that each phase of the build meets required standards. This prevents costly repairs and safety hazards down the line. They force the builder to fix their defective work, instead of you paying for it later.
3. What should I do if my builder requests payment for an incomplete stage?
   • Do not make the payment and immediately request a stage inspection to verify the work completed. Ensure that any issues identified are resolved before making any further payments.
4. Can I conduct a stage inspection myself?
   • While you can conduct a basic review, it’s recommended to hire a qualified and independent. A DIY inspection also doesn’t hold any real weight in court, if you end up there.