A Balcatta building contractor has been fined $5,000 for providing false completion notices to its home indemnity insurance (HII) provider for building works across six development sites.
The Building Services Board found Sovereign Building Company Pty Ltd (BC11943) engaged in misleading conduct under WA’s builder registration laws.
An investigation by the Department of Local Government, Industry Regulation and Safety’s Building and Energy division found that between 2021 and 2024, the company lodged 25 notices of completion with QBE Insurance when they had not finished the building work.
QBE required Sovereign to submit the notices to show their work on the sites had reached practical completion, making them eligible to take out another HII policy for their next project.
HII is compulsory for residential building work valued at more than $20,000 and provides financial protection for homeowners if the builder cannot complete or rectify a project for reasons including death, disappearance or insolvency.
The Board found Sovereign’s premature lodgement of the forms misrepresented the true stage of completion, leading QBE to issue HII on a false basis.
The Board noted the company’s cooperation with the investigation, acknowledgement of its actions and lack of prior building disciplinary matters.
Building and Energy Executive Director Daniel Kearney said misleading conduct by a registered building contractor, particularly on multiple occasions, is absolutely unacceptable.
“Builders must only submit completion notices when works have genuinely reached practical completion,” Mr Kearney said.
“This enables the insurer to accurately assess the home indemnity insurance facility available to the builder.
“The integrity of this insurance arrangement must be upheld to maintain important protections and peace of mind for consumers when contracting for residential building work.
“The conduct of Sovereign in these instances has fallen short of the Board’s and the community’s expectations.”
Media contact: BEmedia@lgirs.wa.gov.au