Building firm Nicheliving has been deregistered, but luxury home build of company boss’s wife continues apace

by Admin
July 31, 2024

In short:

Perth construction company Nicheliving has failed to get its registration renewed, and it still has more than 230 unfinished homes throughout Perth.

When the ABC visited the location of company managing director Ronnie Michel-Elhaj’s wife’s luxury home build in Applecross on Wednesday, work was continuing apace.

Building Commissioner Saj Abdoolakhan said Mr Michel-Elhaj’s wife would be among those eligible to claim up to $200,000 under the home indemnity insurance provision.

Construction work is continuing on a luxury home belonging to the wife of the managing director of an embattled Perth builder deregistered by authorities, while more than 230 customer homes remain unfinished.

The home, in the name of Natalie Elhaj, who is married to Nicheliving managing director Ronnie Michel-Elhaj, is being built in the upmarket riverside Perth suburb of Applecross.

Despite WA’s Building Services Board deciding yesterday against renewing the building contracting registration of Projex Management and Construction, which trades as Nicheliving, building work was continuing on the site when the ABC visited.

Nicheliving managing director Ronnie Michel-Elhaj’s wife is building this luxury home in Applecross. (ABC News: Alicia Hanson)

Paul Bitdorf, the company’s second managing director, also has a home in his wife’s name, Halina Bitdorf – one of three luxury townhouses being built by Nicheliving in Cottesloe in Perth’s western suburbs.

When the ABC visit that site yesterday, there was no sign of ongoing construction taking place.

The Building Services Board’s decision means the company cannot undertake any building work that requires a building permit or enter into new contracts.

It leaves hundreds of customers without answers and facing the prospect of recovering a maximum of $200,000 from the company’s mandatory insurance policy.

There was no sign of activity at this building site in Cottesloe on Wednesday.(ABC News: Courtney Withers)

Mr Michel-Elhaj has refused to answer questions from the ABC regarding the deregistration of his company and the construction of his wife’s home.

Customers first raised concerns last year about lengthy construction delays, and investigations have revealed the company owes the tax office alone almost $4 million.

Nicheliving managing director Ronnie Michel-Elhaj refused to answer questions from the ABC. (Supplied)

WA Commerce Minister Sue Ellery said in mid-June that Nicheliving directors Ronnie Michel-Elhaj and Paul Bitdorf had assured her the company was financially sound.

Earlier this month, Mr Michel-Elhaj released a statement saying the company had decided to not take on any new projects to “ensure we meet our current obligations”.

Building Commissioner Saj Abdoolakhan said the company had not been able to convince the board they could do that.

“We’ve given the company many opportunities to come back and give us additional information to reassure us and the board that they can meet their debt when they fall due,” he said.

“And in this case we didn’t [get that].”

Mr Abdoolakhan said Ms Elhaj would be among those eligible to claim up to $200,000 under the home indemnity insurance provision.

“That’s the law and the insurance process as well is independent of what we can do as a government or as a regulator,” he told ABC Radio Perth.

Premier Roger Cook said while he did not know the details of the homes being built for company directors and their families, he could “understand that adds insult to injury” for others trying to get their homes completed.

‘Not fair’ directors can access insurance

Jennifer Lee, who has been waiting more than four years for her Nicheliving house in Tapping in Perth’s north to be built, said it’s “not fair” the managing directors will be able to access the indemnity insurance.

“I don’t think it’s fair but that is the law,” she said.

Jennifer Lee has already waited years for her Perth home to be completed by Nicheliving.(ABC News: Courtney Withers)

“If the law is right for one, it’s got to be right for all, but I don’t think it’s fair, no.”

Ms Lee first signed into a contract with Nicheliving in December 2020 and was promised her home would be built within 12 to 15 months, however, the Tapping home is still a construction site and she hasn’t been given a completion date.

When the ABC visited the site yesterday, several wooden door panels of Ms Lee’s house were rotten, the flooring inside the house had turned green in colour and rubbish was scattered throughout.

Nicheliving workers gathered for a meeting in East Victoria Park on Wednesday. (ABC News: Emma Wynne)

“I truly hope that they feel the pain that we have been feeling now that they’re not allowed to build anymore and that they can see what we have been going through not having our houses completed,” she said.

Ms Lee said she plans to sell her home when it’s finally completed or is even considering “knocking it down and starting over again”.

“I actually stopped driving past because it was just so depressing, so depressing,” she said.

Jennifer Lee and her daughter Robin can only stare at their unfinished home. With builder Nicheliving having been deregistered, it’s unclear when construction will be complete. (ABC News: Courtney Withers)

“When you’ve got something with all of your life savings and nothing going forward, you’re losing out daily.”