Perth builder hits pause on new work to tackle backlog of home builds after scores of complaints from clients

One of Perth’s biggest home builders has slammed the brakes on new sales “to absolute minimum levels”. The decision to curb sales follows scores of complaints from existing BGC customers unhappy with agonisingly slow builds. The builder is facing a potential class action from some irate homebuyers who have engaged Morgan Alteruthemeyer Legal Group. “Due to ongoing severe labour shortages across WA, BGC Housing Group has significantly restricted its intake of new home sales to absolute minimum levels,” a spokesman for the company said. BGC claims its decision enables it to “direct all its resources and attention to completing the builds for our existing customers”. “Our focus is entirely on delivery of the houses we have on ground,” the spokesman said. BGC Housing Group includes several big brands — Aussie Living Homes, Homestart, Smart Homes for Living, Now Living, Terrace and Ventura South West. Smart Homes customer Erika Steel was so dismayed by the lack of progress on her home at Wandi, 27km south of Perth, that she handed out flyers at display home villages two weeks ago. She said the tactic had seemed to do the trick as she had now been given a date for her roof framing — after six months of inactivity. Ms Steel said she had been annoyed to notice that BGC was building display homes — to secure new customers — instead of prioritising existing customers. “BGC are completing four new show homes in Apsley estate in Mandogalup,” she said. “Their slabs went down in November and they are now at the same stage as mine that has taken 28 months. “They are putting their shiny new show homes to sell more homes in front of homeless people. Disgusting.” Ms Steel was relieved to learn that BGC were now curbing new sales to focus on customers like her. “Why didn’t they do this two years ago when they knew the amount of contracts signed far exceeded their ability to build them?” she said. Ms Steel said her whole street was finished, apart from her house and a neighbour who was also building with Smart Homes. “I’m on the brink of financial ruin because I’m paying mortgage and rent,” she said. “My kids have to live with their father. My youngest is in student accommodation. I had to rehome my dog. I’m living in a tiny studio that you couldn’t swing a cat in.” Ms Steel said some building companies had managed to deal with the tough market conditions better than BGC. “I’m seeing other homes completely finished around me and mine doesn’t have a roof,” she said. “I’ve got roof timber that’s been sitting on site since July. It has warped in the sun.” BGC reduced hourly rates for bricklayers on February 1. Bricklayers are now paid as little as $1.50 per brick, which is well below the industry standard of up to $2.60 per internal brick. In a recent notice, BGC said it would pay $1.50 per internal and $2 per external brick on single-level homes. Double-storey homes would attract $1.70 for internal bricks and $2.20 for those on the external wall. Bricklayer and builder Frank Caratti said BGC was responding to reduced demand for bricklayers across the industry. “The boom’s come off so some brickies are struggling to find work,” he said. “Some are ringing around builders to find out if they’ve got work.” Facebook group Decent Bricklayers Perth has several posts from brickies searching for work, with some even offering to toil as labourers. But bricklayers on the site regularly refuse to work for BGC in protest at its low rates.