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$28k deposit, no work done: WA builder slapped with fine
A Western Australian builder has been fined after taking an excessive deposit for building work he never carried out, leaving home owners almost $30,000 out of pocket.
A Narrogin man has been convicted of four charges relating to a property in the Wheatbelt town of Highbury.
Shane Ronald Owens, trading as Owens Building, has been fined $12,000 for four breaches of WA building laws, including taking an excessive deposit and contracting for building work without the required registration.
According to information presented in court by the Department of Local Government, Industry Regulation and Safety, Owens was contracted to carry out home building work worth $92,888.40 in September 2023.
The work included replacing the roof, building an ensuite with a walk-in robe and constructing a large timber deck.
Owens requested a deposit of $27,866.52, representing 30 per cent of the contract price.
However, the Home Building Contracts Act 1991 limits deposits to 6.5 per cent for home building work valued between $7,500 and $500,000.
The court heard the home owner paid the deposit, but no work was carried out.
Additionally, the same legislation requires home owners to receive a prescribed notice outlining their contractual rights, which must be signed and dated, which Owens failed to provide.
The court also found Owens never held the required building contractor registration, which was necessary as the project was valued at more than $20,000 and required a building permit.
Magistrate Myers fined Owens $7,500 for the registration offence, $3,500 for taking an excessive deposit and $1,000 for the two contract offences. He was also ordered to pay $821.30 in costs.
A separate payment arrangement has been put in place for Owens to refund the deposit.
Building commissioner Phil Payne said the proposed building work was well beyond the limit permitted for an unregistered person.
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“Consumers are protected by home building contract legislation, which includes the 6.5 per cent deposit limit to help avoid situations where large sums of money are taken and work is never carried out.”
“Home owners are encouraged to seek evidence of a builder’s contractor registration before entering into a building contract valued at more than $20,000 and requiring a building permit,” Payne said.
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