Civil West Construction, linked to MGroup’s construction arm Marawar, has entered voluntary administration this week.
The maintenance arm of Perth building company Marawar has entered voluntary administration, amid a volatile construction market.
Civil West Construction Pty Ltd, formerly known as Marawar Pty Ltd and M Construction Maintenance Pty Ltd, entered external administration yesterday.
The entity that has gone into administration is separate from building company Marawar WA Pty Ltd, formerly known as M Construction (WA) and Match Construction, which is still registered.
Civil West Construction is the maintenance arm of indigenous building company Marawar, which merged with MGroup’s MConstruction last year.
Civil West is overseeing the defects liability period for MGroup’s four-storey apartment development on Parry Street in Fremantle, which was built last year.
Business News understands that the company has assured apartment owners that their defects will be rectified, with plans to hand the defect works to Marawar Pty Ltd.
Hamilton Murphy director Brett Orzel was appointed administrator of Civil West Construction yesterday.
He told Business News that Civil West was a related entity to Marawar, which itself was not in administration.
“We are working with the directors of Civil West to restructure the company with a view to facilitating its exit from voluntary administration and we are continuing to trade the business,” he said.
The formation of Marawar, led by Nyoongar traditional owner Gerry Matera, followed MGroup forming its own building arm MConstruction in 2010.
In 2019, MConstruction, now Marawar, director Michael Read told Business News MGroup establishing its own building arm would help it avoid any scandals around building defects.
Australian Apartment Advocacy founder Samantha Reece, who is calling for greater insurance protections for apartment owners when their builder goes under, said she had been contacted about the Fremantle development.
“We’re comforted it’s not the construction company but rather the maintenance arm that’s impacted in this situation, because the owners of this development have approached us with concerns about defects and the last thing we want to hear is that they have been left high and dry with no warranty protection,” she said.
Current home indemnity insurance policies apply to buildings of three storeys or less, covering homeowners when their builder becomes insolvent, disappears or dies.
