Builder left owners uninsured and with incomplete work

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Graeme John Williams, the director and secretary of formerly registered and since liquidated building company Moonfern Pty Ltd (reg. BC11102 – expired), trading as Williams Homes, has been prosecuted by the Building Commissioner for performing work and demanding a deposit for the construction of a Broome dwelling without first providing the owners with a certificate of home indemnity insurance.

On 3 February 2017, Mr Williams, of Padbury, was ordered by the Perth Magistrates Court to pay a fine of $2,000 and costs of $413 after having previously pleaded guilty to the offence in the Broome Magistrates Court.

In April 2014, Moonfern contracted for the work valued at $350,000. Mr Williams then demanded a $3,500 deposit from the owners in May 2014. Between June and July 2014 the company laid the concrete slab, built the wooden frame and partially completed the roof at the site, all without obtaining a policy of home indemnity insurance for the site.

The company went into liquidation in July 2014 leaving the owners without insurance cover against financial loss should the work be faulty or unsatisfactory.

“It is important that builders meet their obligations in regards to home indemnity insurance because failing to do so can expose owners to significant financial and personal loss,” Building Commissioner Peter Gow said.

“Owners can protect themselves by ensuring that, when the building work is valued over $20,000, the builder takes out a policy of home indemnity insurance in the owner’s name prior to the work being commenced and before they make any payments.

“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.”

Information for home owners is available in the ‘Building and renovating your home’ section of the Building Commission website at www.commerce.wa.gov.au/building-commission/building-or-renovating-your-home or phone 1300 489 099.

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Media release
22 Feb 2017

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