Builder hit with fine for uninsured construction work
A Perth building contractor has been fined over $4,000 for working without home indemnity insurance.
Building and Energy in Western Australia has prosecuted a Perth building contractor for performing foundation work at a Queens Park home without the mandatory home indemnity insurance (HII).
The company, DBD Developments Pty Ltd, based in East Victoria Park, pleaded guilty to breaching the Home Building Contracts Act 1991, which requires builders to have an HII policy before starting any building work.
The home indemnity insurance ensures home owners are protected against financial losses if builders cannot complete or rectify building work in case of death, disappearance, insolvency, or loss of registration on financial grounds.
The HII policy is also required before builders can accept payment for work valued at more than $20,000.
Armadale Magistrates Court was told that DBD Developments worked without insurance in January 2022 when builders installed a concrete slab, footings, and pre-lays for the two-storey house.
DBD Developments contracted an HII policy in July 2022.
Magistrate Brionie Ayling said the company “cut corner” to meet deadlines and put workers and the home owner at risk by working without an insurance policy.
The court ordered the construction company to pay a $3,500 fine and $736 in costs.
Building Commissioner Saj Abdoolakhan said the home owner had also made two progress payments without HII protection.
“The builder was eligible for this insurance and should have obtained it before commencing work, rather than six months later,” Abdoolakhan said.
“This conduct undermines the protections provided by WA’s home building contract laws and the overall integrity of the building approvals process,” Abdoolakhan concluded.