Warning about building contractor’s financial status
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The Building Commission is aware of information circulating about the solvency of registered building contractor Builtoncorp Pty Ltd (reg. BC12114).
All registered building contractors are required to notify the Building Commission if they are no longer able to meet their financial obligations under the Building Services (Registration) Act 2011.
Building Commissioner Peter Gow said, “Although the Building Commission has not received formal notification, the builder has contacted us today and advised that he may need to place the company into voluntary administration. People should be cautious about dealing with the company and should only make payments when the company confirms its financial situation.
“In the event the company does go into external administration, home owners who have entered into a home building work contract with Builtoncorp and have unfinished, faulty or unsatisfactory work should be covered by home indemnity insurance.”
Residential building work contracts in Western Australia are governed by the Home Building Contracts Act 1991. If residential building work valued over $20,000 is to be undertaken, the Act requires that a builder take out home indemnity insurance in the name of the owner before accepting payment or commencing work.
Further information on this process is available on the What should I do if my building work is unfinished? page of the Building Commission website.
The Building Commission understands that Builtoncorp has a number of incomplete multi-storey unit developments where apartments have been pre-sold off the plans.
Consumers with off-the-plan contracts may be able to recover their deposits, but this will depend on the type of property being purchased and the specifics of the contract.
If a contract is for the purchase of a strata title or survey strata property deposits must be held in the trust account of a solicitor, real estate agent or settlement agent until a strata/survey strata plan has been registered with Landgate. Further information is provided in Consumer Protection’s online guide for off-the-plan buyers of land or property.
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