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Property builder hit with $6k fine

Property builder hit with $6k fine

by Emma Ryan | November 29, 2019 | 1 minute read

A Mount Pleasant building practitioner and his company have been fined $6,000 after starting construction work without the required home indemnity insurance or building permit.

Property builder
November 29, 2019

Compass Building Pty Ltd, along with the company’s director and nominated supervisor at the time, Robin Pyle, were fined $3,500 for negligence and $2,500 for failing to properly manage and supervise a building service under WA’s building registration laws.

The matter comes after The City of StirlingStirling, WA Stirling, SA Stirling, ACT lodged a complaint with WA-based Building and Energy after finding brick walls completed on the ground floor of the two-storey house in Doubleview in July 2018 even though a building permit application, submitted in March, “had been twice delayed due to the builder’s failure to provide [an] HII certificate”.

“Compass Building had taken a $35,750 deposit from the home owners in June.”

According to a statement provided by Building and Energy, The City ordered work to stop, and Compass Building and the home owners mutually agreed to terminate a $550,000 contract entered into in January 2018.

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“Compass Building’s building contractor registration expired in June 2019. The owners have since obtained a building approval certificate for the unauthorised works and another registered builder completed the house,” the statement explained.

Building and Energy executive director Saj Abdoolakhan said the requirement for a builder to obtain an HII policy is “a fundamental protection for consumers, and building work should never commence without relevant approvals in place”.

“Carrying out building work without a building permit contravenes WA’s building laws, the obligations of a registered building service provider and the expectations of the community,” he said.

“The issuing of a building permit is an important part of WA’s system of building control because it ensures building plans meet the required building standards and that only qualified builders can undertake the building work. When builders bypass this process, they jeopardise building safety, leading to potentially faulty or even hazardous building works.

“The lack of an HII policy leaves owners exposed to potential loss should any building defects be found within six years from practical completion.

“The fines could have been even higher in this case, but there was no prior history of this type of conduct and the respondents cooperated with the investigation and admitted their misconduct.”

Going forward, Mr Abdoolakhan offered some advice for future home buyers who are building.

“Builders have a legal requirement to provide a copy of an HII certificate to the home owners before construction begins, and consumers can protect themselves by ensuring they get that important insurance document before paying any money,” he said.

About the author

Emma Ryan

Emma Ryan

Emma Ryan is the deputy head of editorial at Momentum Media and editor of Smart Property Investment.

Emma has worked for Momentum Media since 2015, and has since been responsible for breaking some of the biggest stories in corporate Australia, including across the legal, mortgages, real estate and wealth industries. In addition, Emma has launched several additional sub-brands and events, driven by a passion to deliver quality and timely content to audiences through multiple platforms.

Email Emma on: [email protected]com.au

Property builder hit with $6k fine
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