Boutique building firm collapses

Yet another construction company has collapsed with Perth builder City Residence Pty LTD going into liquidation.

Peter Malone from CRS Insolvency Services was appointed liquidator on Wednesday after a company meeting resolved City Residence should be wound up.

The company was yet to complete 13 residential building projects despite the liquidation.

Building and Energy acting executive director Nabil Yazdani said property owners who have contracts with City Residence should contact QBE Insurance to discuss a home indemnity insurance claim.

“If a builder becomes insolvent, home indemnity insurance offers protection against lost deposits or incomplete or faulty building work,” Mr Yazdani said.

“Lodging a claim enables homeowners to begin the process of engaging another registered builder to complete the work or to pursue other remedies they may be entitled to.”

Affected owners can contact QBE on 1300 790 723 to discuss arrangements.

Subcontractors affected by the liquidation are advised to contact Mr Malone on 02 99779 3227.

There are reports the Builders Registration Board is poised to reject a renewal of the company’s registration.

“Recent law changes mean a history of insolvency can lead to exclusion from future registration as building service contractor,” the statement about the insolvency said.

“The Building Services Board now has powers to exclude individuals, partnerships and corporations from being granted registration as a building service contractor if an insolvency event has occurred and certain other circumstances apply.”