A Perth building contractor has been fined $5,000 after it provided a forged and invalid home indemnity insurance (HII) certificate as part of a building permit application.
The Building Services Board found Innaloo-based Midnight Construction Group Pty Ltd (BC103710) engaged in fraudulent conduct under WA’s builder registration laws and intended to mislead the City of Stirling into issuing a building permit for a new home construction in Yokine.
HII is compulsory for home building projects valued at more than $20,000. It protects owners against financial loss if a builder cannot complete or rectify building work because of death, disappearance, insolvency or loss of registration on financial grounds.
According to information presented to the Board by Building and Energy, Midnight Construction Group submitted the building permit application to the City in December 2023. The accompanying HII certificate was found to be inauthentic with a made-up policy number and other details typed over blanked-out previous text.
At the time, Midnight Construction Group had not applied to HII provider QBE for access to this insurance, which was later granted. In March 2024, the company provided an authentic HII certificate to the City, which approved the building permit a fortnight later.
Building Commissioner Saj Abdoolakhan said it was unacceptable for registered builders to attempt to side-step any of their HII obligations.
“This conduct undermines the protections provided by WA’s home building contract laws and the overall integrity of the building approvals process,” Mr Abdoolakhan said.
“Fortunately, the City of Stirling’s due diligence identified the inauthentic certificate, but if a building permit had been granted at that time, the homeowner could have faced substantial financial risks without the required HII cover.”
To confirm the validity of an HII certificate, homeowners can search QBE’s Builders Warranty Insurance Certificate Register.
<ENDS>
Media contact: Sarah Roberts – 0466 409 828 – BEmedia@demirs.wa.gov.au
