Building and Energy has prosecuted a Perth building contractor for carrying out foundation work for a Queens Park home without the required home indemnity insurance (HII).
At Armadale Magistrates Court, DBD Developments Pty Ltd (BC102951), based in East Victoria Park, pleaded guilty to breaching the Home Building Contracts Act 1991.
This law requires a builder to take out an HII policy for home building work valued at more than $20,000 before accepting payment or starting work. HII protects owners against financial loss if the builder cannot complete or rectify building work because of death, disappearance, insolvency or loss of registration on financial grounds.
The court was told DBD Developments installed a concrete slab, footings and pre-lays for the two-storey house in January 2022, but it did not have an HII policy in place until July 2022.
Magistrate Brionie Ayling ordered DBD Developments to pay a $3,500 fine and $736 in costs, noting the company “cut a corner” to meet timelines and put itself and the customer at risk by carrying out works without insurance.
Building Commissioner Saj Abdoolakhan said the homeowner had made two progress payments, without having the protection of HII in the event of issues with the building work.
“The builder was eligible for this insurance and should have obtained it before commencing work, rather than six months later,” Mr Abdoolakhan said.
“This conduct undermines the protections provided by WA’s home building contract laws and the overall integrity of the building approvals process.”
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Media contact: BEmedia@demirs.wa.gov.au
