WA builder operating without insurance putting home buyers at risk

The Building Commissioner is warning consumers about a company that is allegedly entering into home building contracts without a current and valid home indemnity insurance (HII) policy, putting WA home buyers at risk.

Building Commissioner Kristin Berger is investigating claims that registered building contractor Western Australian Construction Pty Ltd (BC102149), despite its eligibility for HII being restricted, is continuing to sign up home building clients.

The company has been involved in several projects around the state including the $80,000 St John's Waroona upgrade, completed in September 2018.

"The effect of Western Australian Construction being restricted meant that it was not entitled to obtain HII certificates for its building projects for the time being," the Building Commissioner said.

"Under WA's building laws, builders should not be entering into contracts or accepting payments without HII because buyers risk losing their money should the company go into liquidation.

HII is a safeguard for consumers in the event the builder becomes insolvent and enables home owners to make a claim on their HII policy up to $20,000 for loss of a deposit and up to $100,000 for building work.

"Our investigation was launched after it was alleged some certificates of HII provided to home owners who had engaged Western Australian Construction to build their home were not issued by the HII insurer and may have been forged.

"The public is warned to exercise care if entering into any new building contracts with this company. Do not pay any money by way of deposits or progress payments unless you have confirmed with the insurer there is a valid HII policy in place for your project."

Anyone who is currently building with Western Australian Construction and has yet to be contacted by Building and Energy, should immediately contact senior Investigator David Streeton on 6251 1219 or via email to david.streeton@dmirs.wa.gov.au.

This story WA builder operating without insurance putting home buyers at risk first appeared on Mandurah Mail.