• False home indemnity insurance certificates provided for a development project
• Permit authority misled when issuing a building permit
• $5,000 fine issued by the Building Services Board

The Building Services Board has issued a $5,000 fine to a Herne Hill building contractor for misleading a permit authority into issuing a building permit based on false home indemnity insurance (HII) certificates.

According to information presented to the Board, building contactor Transilvania Constructions Pty Ltd (BC10725) submitted a building permit application to the City of Swan in January 2020 for the construction of seven single-storey units for a development project in Hazelmere. The application contained evidence to satisfy the City of Swan that HII had been taken out for the project.

The building permit was issued and, in October 2020, construction of the seven units was completed. The units were all sold to related parties of the building contractor.

Some months later, it was identified that HII was not in place for any of the units and that the evidence sent to the City of Swan had been falsified.

HII protects owners against financial loss during the construction period and six years from the date of practical completion, if a builder cannot complete residential building work or meet a valid claim for faulty or unsatisfactory building work because of death, disappearance or insolvency.

Transilvania Constructions cooperated with the investigation and gave consent for the Building Services Board to deal with the disciplinary complaint.

Building and Energy Executive Director Saj Abdoolakhan said falsifying insurance certificates is a serious matter that undermines the protections for consumers.

“Home indemnity insurance is required prior to the commencement of most residential building work valued above $20,000, and it is the responsibility of the registered building contractor to ensure this is in place,” Mr Abdoolakhan said.

Home owners should receive a copy of the HII certificate from the builder or they can search QBE’s Builders Warranty Insurance Certificate Register to verify the HII details.

<ENDS>

Media contact: BEmedia@dmirs.wa.gov.au