Shed company and director prosecuted and fined

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Malaga company Shed Systems Pty Ltd and its sole director David Walter Ah Chee have been prosecuted by the Building Commissioner and fined a total of $100,000 plus costs for contractual and registration-related offences.

On 1 July 2016, the Joondalup Magistrates Court found the company and Mr Ah Chee guilty in their absence of the same 10 charges under the Home Building Contracts Act 1991 and one charge under the Building Services (Registration) Act 2011.

The offences related to home building work the company contracted for at two properties – one in Nilgen and the other in Ravenswood – between November 2014 and February 2015. Valued at $9,904.82 and $28,800 respectively, both contracts were for the supply and installation of a shed.

The magistrate found that in relation to both sites the company had committed several contractual offences, including failing to ensure that the home building work contract was in writing, contained the date and all the terms of the agreement and was signed by both parties; and entering into a contract that provided for it to receive or demand a deposit in excess of 6.5 per cent of the total value of work. The company was also found to have undertaken to carry out builder work without the required registration at the Ravenswood site.

Shed Systems was ordered to pay a fine of $75,000 and costs of $789.88. As the sole director who consented to the company’s actions, Mr Ah Chee was taken to have also committed the offences of the company and was ordered to pay a fine of $25,000 and costs of $789.88.

Despite having demanded and received the full contract price before commencement, the company never completed its work at the Nilgen site. The owner of the Ravenswood site cancelled their contract with the company before any work was carried out.

“The conduct of this company and its director show how important it is for homeowners to know their rights and responsibilities before they engage the services of a builder,” Building Commissioner Peter Gow said.

“Some helpful information for home owners is available in the ‘Building or renovating your home’ section of the Building Commission website.

“The Building Commission will continue to hold to account and name those who put the public interest and the reputation of the building industry at risk.”

In 2008, Mr Ah Chee, as the sole director of the now deregistered company Shed Co Pty Ltd, was successfully prosecuted by the former Builders Registration Board for contractual and registration-related offences. He was ordered to pay a fine of $12,000 and costs of $258.70.

END OF RELEASE

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Media release
25 Jul 2016

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