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$12k blunders: WA builder’s insurance, progress payment errors prove costly
Swan View building practitioner Shane Alexander Lynn has been fined for two offences after being contracted to renovate a Rossmoyne house.
Armadale Magistrates Court was told Lynn’s company, CASM Construction Pty Ltd, now in liquidation, was contracted in 2024 to renovate a kitchen, bathroom, ensuite and laundry of a property.
According to the Western Australian government’s Building and Energy department, as the project value exceeded $20,000, the builder was legally required to take out a home indemnity insurance (HII) policy before starting work or seeking payments.
In Western Australia, HII protects owners against financial loss if a builder cannot complete or rectify building work due to insolvency or other specific circumstances.
However, the court heard that Lynn, on behalf of CASM, started work and received money without obtaining an HII certificate for the project.
Additionally, CASM, through Lynn, sought and received progress payments totalling more than $53,000 for tiling work, even though the company had not purchased or installed any tiles.
After pleading guilty to breaching the Home Building Contracts Act 1991, Lynn was fined $7,000 for the HII offence and $5,000 for the unjustified progress payments.
Following sentencing on 23 January 2026, Magistrate Joe Randazzo also ordered Lynn to pay $676.50 in costs.
According to Randazzo, while Lynn had experienced personal difficulties, he should have understood the contractual obligations after 30 years in the industry.
Building commissioner Phil Payne said tradespeople needed to uphold their responsibilities under home-building laws, urging consumers to read contracts carefully and ensure HII was in place where necessary.
“Company directors should also take note that they will still be held accountable even if their business is insolvent,” he concluded.