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Heritage Homes (WA) Pty Ltd and director to pay $3,500 for unlawful contract changes

Heritage Homes (WA) Pty Ltd and director to pay $3,500 for unlawful contract changes
Heritage Homes (WA) Pty Ltd and director to pay $3,500 for unlawful contract changes

A West Australian Building company, Kalamunda’s Heritage Homes (WA) Pty Ltd (registration number 9081) and company director Paul Vincent Monkhouse, have been ordered by the Building Services Board to pay $3,500 for negligent conduct.

Heritage Homes was found to have failed to reduce to writing a total of 41 variations to home building contract working, according to an ASIC release. This is an action required under the Home Building Contracts Act 1991.

These offences were recorded as occurring between April 2009 and June 2011. They were in relation to a contract, that had been entered in to in April 2009, for a Nedlands house. The house was to have renovations and extensions, and it was valued at $458,700.

Routine checks were carried out by the Building Commission. Building Commissioner Peter Gow explained that the Home Building Contracts Act sets out the minimum requirements for contracts. It applies to home building, and associated work, costing between $7,500 and $500,000.

As a result of non-compliance, the company was fined $2,500. Monkhouse, as director and nominated supervisor, copped a $1,000 fine.

“The act is in place for a good reason; it protects both the home owner and persons undertaking home building and associated work,” said Gow.

“One of the requirements of the act is that any variation to the contract must be reduced to writing and signed by both the builder and the owner.”

This is a requirement that ensures property owners are given to accept or reject any variation to a contract before it occurs, and are not hit by additional fees at the end of the building process that they were not aware they had consented to.

“The Building Commission will continue to name those who put consumer interests and the reputation of the building industry at risk,” Gow concluded.

Jennifer Duke

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

Tags: 
Western Australia Asic

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