Penalties for builder who failed to obtain statutory building insurance

statutory building insurance nsw


Another contractor is cooling his heels after being found guilty of failing to obtain the mandatory cover under the Home Compensation Fund Insurance Scheme.

Not only did the contractor fail to obtain the insurance in breach of the Home Building Act 1989 but he went further and represented to the homeowners that he had obtained it by producing fraudulent certificates.

Failing to obtain the statutory insurance leaves contractors open to fines, disciplinary action and prosecution by Fair Trading.

In this case the builder was charged with making false and misleading statements on insurance applications and using false documents for financial gain.

The prosecution resulted in 8 months of home detention.

A recent Supreme Court decision indicates that this type of misrepresentation can be misleading and deceptive conduct allowing owners to claim the costs of defective work against the person who made the representation.

A useful line of attack for home owners where the building company is insolvent. Checking whether the insurance is in place is now an easy task thanks to the new Fair Trading online check.

More information in our July Newsletter »


Do you need advise dealing with a building without statutory building insurance?

Clare Peacock is an experienced construction lawyer working on Sydney’s Northern Beaches. Clare provides practical, cost-effective building approval advice to property owners, builders and strata managers. Services include residential building disputesbody corporate issues and strata building problems.

Call 02 9452 9298  Send an Email  Online Enquiry


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