Board limits Diploma’s builder registrations

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The Building Services Board has imposed conditions on the contractor registrations of Belmont builder Diploma Construction (WA) Pty Ltd (BC11854) and related Leederville-based entity DGX Construction Pty Ltd (BC14593).

The conditions imposed by the Board on 10 January 2017 prevent the companies from entering into contracts for the carrying out of building work for which contractor registration is required. The conditions do not restrict the companies from completing building work under existing contracts.

The Building Commission has been investigating Diploma’s performance and viability as a registered building contractor since September 2016. The investigation was launched following allegations by more than 50 suppliers and subcontractors that Diploma was refusing to pay them without justification. Diploma had indicated its intention to defend a number of the court proceedings being brought against it.

Building Commissioner Peter Gow said Diploma’s recent appointment of an administrator had cast further doubt over its ability to meet its registration obligations and justified the action taken by the Board.

“Registered building contractors are required under the Building Services (Registration) Act 2011 to meet financial requirements, specifically to maintain the capacity to pay debts as and when they fall due,” Mr Gow said.

“The Board’s action will limit the risk to the public while the Building Commission completes its investigation into Diploma’s conduct.

“Further action will be taken if Diploma is found to have engaged in conduct in breach of its registration obligations. Penalties for misconduct may include the suspension or cancellation of a registration.

“In the meantime, the public is warned not to enter into any new building contracts with Diploma unless the conditions on its registrations are lifted.”

The status of a builder’s registration, including any conditions imposed by the Board, can be viewed on the register at www.commerce.wa.gov.au/building-commission/find-registered-building-serv....

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Media release
17 Jan 2017

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