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Builder hit with $30k fine over defective Melbourne town house build 

23 JUL 2026 By Gemma Crotty 3 min read Tax & Legal

A Victorian builder has been hit with a $30,000 fine after using non-compliant framing and prematurely taking payment from a town house owner in Melbourne’s east.

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A builder has been fined $30,000 by the Building and Plumbing Commission (BPC) over non-compliant and incomplete construction work at a double-storey town house and carport in Ferntree Gully.

Sukhdeep Singh Deol, of SMP Homes Pty Ltd, in Roxburgh Park, was found to have used steel framing instead of the timber specified in the building permit, without getting approval from the relevant building surveyor (RBS).

Additionally, Deol illegally requested payment from the home owner for the framework stage before it was signed off as complete by the RBS.

Despite eventually being deemed compliant 12 months later, the framework initially failed to pass three mandatory inspections.

 
 

The BPC found several examples of poorly executed building work, including misaligned roof trusses, rotting and split beams and a defective subfloor, all of which required remedial work.

Prior to Deol rectifying the work, the home owner had to engage an independent inspector to identify the issues.

In addition to the fine, Deol has been ordered to complete three training units within 12 months.

The BPC issued a reminder that in Victoria, all home building work over $10,000 must have a major domestic building contract in place.

The contract must include a payment schedule tied to completion of specific stages of building work.

The incident followed a recent surge in popularity for renovations, with loan demand for refurbishments rising as home owners seek new ways to add value to their properties.

The BPC said consumers should be aware that demanding payments outside the contract schedule was illegal.

“A builder can only ask for a 5 per cent deposit for jobs over $20,000 and a 10 per cent deposit for jobs over $10,000.”

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RELATED TERMS

Townhouse
A townhouse refers to multi-floor homes sharing one or more walls with adjacent homes and has its own entry points.