A group of aggrieved homeowners have gathered outside the State Administrative Tribunal to protest against BGC Housing Group, the subject of a proposed class action lawsuit.
A group of aggrieved homeowners have gathered outside the State Administrative Tribunal to protest against BGC Housing Group, the subject of a proposed class action lawsuit.
It comes as nearly 12,000 people signed a petition to “show their support” for families who have been “negatively impacted” by chronic building delays ahead of Friday’s protest.
The grassed area outside of the State Administrative Tribunal was crowded with about 50 disgruntled homeowners who signed with the major WA builder.
One of which was veteran and BGC customer John Whinnen, who has a dispute against the housing group’s subsidiary J Corp scheduled to be heard at the SAT in October.
Speaking at the protest, Mr Whinnen gave an emotional recount of his building process after signing with the building group in December 2020.
He said three years later his mental and physical health had taken a toll as a result of drawn-out process, which is yet to eventuate in a completed home.
Mr Whinnen ended his speech with a call to action to fellow affected customers, imploring them to "keep the building company accountable".
Behind the protest action was grassroots entity BGC Casualties Group, which has been campaigning against BGC for a myriad of changes to the home building process.
"We are thousands of people and families who have been negatively impacted by the reckless decisions made by BGC Housing Group," the petition ahead of today's protest read.
"Delays on our home builds have far exceeded the industry standard.
"In some cases, clients have been waiting over three years for a single-storey home."
The same homeowners group organised a 100-customer strong protest at a BGC display home under construction in Mandogalup in June, over claims the builder was prioritising finishing display homes.
That followed the announcement in April that BGC was closing its books to new sales for the foreseeable future to focus on completing the construction of its existing 4,000 projects, as reported at the time.
Friday’s protest comes after another homeowners group announced it had secured funding to pursue a potential class action lawsuit against BGC on Thursday.
Leading the proposed legal action is Fremantle-based law firm Morgan Alteruthemeyer Legal Group, which confirmed it had secured litigation funder Omni Bridgeway.
ASX-listed Omni Bridgeway would fund the potential class action, which could represent up to 5,000 homeowners who signed contracts with BGC between July 2019 and June 2022.
Affected homeowner Jess Spithoven, one of the founders behind the Proposed Class Action Group on Facebook, said more than 800 people had already expressed interest in joining the proposed class action.
On Thursday, a BGC spokesperson said the group would “vigorously defend” any legal action.
The housing group also took aim at the wider construction industry, namely labour and materials shortages it says is beyond its control.
It comes as homebuilders face increased pressure from cost blowouts incurred from fixed price contracts, coupled with strong demand from government stimulus.
BGC defended its sale of homes while also pointing the finger at the roll-out of the state government’s stimulus period.
“The number of sales BGC Housing Group took on through the building stimulus period were well below previous sales in recent strong markets such as 2015/2016 and our market share of home sales remained at historic average levels," BGC said in a statement on Thursday.
“A key driver of extra pressure into the housing construction industry in Western Australia has been the total take-up of stimulus grants.
“Like all builders, BGC Housing Group was unaware of the total take-up (as later revealed by the government) was in the order of 25,000 homes in a market completing 11,000 homes in the prior twelve months to June 2020.
“This issue will continue until chronic labour shortages are addressed.”
BGC has been contacted for comment.
