Builder cautioned on late payment and negligence

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Nedlands building company Minchin & Sims Pty Ltd (Reg. BC7666) and its sole director and nominated supervisor Toby John Bird (Reg. BP10807) have been formally cautioned by the Building Services Board for failing to pay an order of the Building Commissioner on time and for negligent conduct.

In July 2014 the company was ordered to pay a Nornalup property owner $42,449 for repairs necessary to rectify faulty or unsatisfactory building work. The company failed to comply with the order by the due date but later paid the amount in full after receiving a letter from the property owner’s legal representative.

The company was also found to be negligent in failing to ensure a valid policy of home indemnity insurance was in place before commencing residential building work at a Dalkeith property in April 2012. The home indemnity insurance policy issued to the property’s owner named an unrelated person as the policy’s beneficiary and therefore did not meet the requirements of the Home Building Contracts Act 1991.

Western Australia’s building laws require a policy of home indemnity insurance to be in place for all residential building work valued over $20,000.

“It is the builder’s responsibility to take out a policy of home indemnity insurance in the owner’s name when it is required before accepting payment or commencing building work,” said Building Commissioner Peter Gow.

“Home indemnity insurance is an important protection for consumers and failure to obtain a valid policy when required puts the consumer at significant risk of financial loss if the builder cannot complete the building work or meet a valid claim for faulty or unsatisfactory building work because of death, disappearance or insolvency.

“The Building Commission will continue to name those who put consumer interests and the reputation of the building industry at risk.”

For information on builders’ responsibilities, visit the Building Commission website, phone 1300 489 099 or email bcinfo@dmirs.wa.gov.au.

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Building and Energy
Media release
22 Apr 2015

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