WA’s largest home builder BGC vows to ‘vigorously defend’ class action

BGC Housing Group says it will vigorously defend any legal action launched by frustrated customers who claim they have experienced lengthy delays and cost blow outs while building their new homes with the construction giant.

On Thursday, Morgan Alteruthemeyer Legal Group announced it had secured funding with Omni Bridgeway Limited to proceed with a class action on behalf of homeowners who entered into home building contracts between July 1, 2019 and June 30, 2022.

Up to 5000 homeowners could join the class action seeking compensation against BGC for losses they have suffered arising from delays in the construction of their homes.

In a statement, BGC Housing Group blamed the problems plaguing the housing construction industry on the demand for 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,” the statement said.

“There simply is not enough capacity in the market. Western Australia has approximately 22,000 homes currently under construction while build completions across the state remain at around 12,000 per annum.”

BGC Housing Group management said delays in the industry would continue until chronic labour shortages were addressed.

“As a result of a severe lack of labour and materials in the building industry – something beyond the control of BGC Housing Group – we have taken the unprecedented step of ceasing new home sales until the backlog is cleared,” the statement said.

“We are acutely aware of the impact of delays on homeowners, and we remain focused on finishing all homes we currently have under construction.”

BGC said it had a record production last month, where approximately 70 homes per week were completing roof carpentry, roof cover and lock up.

Morgan Alteruthemeyer Legal Group Building and Construction Partner Spencer Lieberfreund said securing funding was a significant step forward for BGC homeowners who have suffered financially from the delays in building their homes.

“A class action against BGC offers individuals a way of seeking financial compensation without being exposed personally to legal costs,” he said.

“We encourage impacted homeowners to join the class action.”

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