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NSW Builders Fined

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NSW Builders Fined

Two NSW builders have been fined $20,000 for breaching home building laws. The NSW Fair Trading Minister Linda Burney hopes that this enforces the message to other builders and tradespeople about keeping current insurance, contracts and certification. It also sends a message to home renovators contracting tradespeople to always check the relevant contracts and certificates before accepting a quote.

Ms Burney said Peter Charles Armstrong of South Windsor was ordered to pay almost $11,000 in fines and costs for demanding payment without a certificate of home warranty insurance and failing to provide a contract of insurance, and William Mark Whiting of Kotara was fined almost $9,000 for undertaking building work without a licence and failing to providing a certificate of insurance.

“Armstrong entered into a $1,000,000 contract to build a residential home in Vaucluse without arranging home warranty insurance,” Ms Burney said.

“Whiting entered into three separate contracts with a client at Bar Beach for building and renovation work without having the correct type of licence to carry out the work.

“Despite this, he undertook the building work and received payment of $144,050 without providing a certificate of home warranty insurance.”

By law, home warranty insurance is required for residential building work over $12,000 to protect the homeowner against defective work should the builder become insolvent, disappear or die.

Ms Burney said residential building work is a highly regulated industry and builders and tradespeople are expected to adhere to all laws, including the requirement of providing the consumers with a contract of insurance to cover the work.

“The message to all builders is clear – you will pay the price if you ignore the law and your responsibilities when it comes to doing the right thing by consumers,” Ms Burney said.

Ms Burney also stressed the importance for home renovators to know the status of a builder before contracting them to do any renovation work.

“I also encourage consumers to do their homework before entering into a contract with a builder.

“Consumers can protect themselves by asking for licence details, and checking with Fair Trading to see whether it is a valid licence for the work proposed before they sign a contract.”

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