- Progress payments sought when applicable building stages not complete
- Non-compliant contract variations to secure additional funds
- Caution issued by the Building Services Board
Consumers are reminded that progress payments under home building work contracts should only be made for services or materials already provided.
The advice follows a caution issued by the Building Services Board to Bunbury builder Peter Robert Andrews (BP102001) for misleading conduct under WA's builder registration laws.
Mr Andrews was a registered building contractor (BC101694, expired) trading as PSA Construction when he was engaged to build a dwelling, shed and water tank at a property in Roelands in 2018.
The contract was later transferred to a building contractor partnership (BC103078) operated by Mr Andrews and his wife, with Mr Andrews as the sole nominated supervisor.
According to information presented to the Board by Building and Energy, progress payments for the $385,000 project would involve the home owner's bank transferring funds to Mr Andrews when he submitted invoices to show that key building stages were completed.
Under the Home Building Contracts Act 1991 - which applies to home building work contracts valued between $7,500 and $500,000 - after work commences, a builder can only seek genuine progress payments for work, materials or services already provided.
However, when Mr Andrews submitted invoices for progress payments at the plate-height, lock-up and fit-out stages, the required work had not been completed. The Board was also told that Mr Andrews issued non-compliant contract variations to secure additional funding from the bank.
Building and Energy Executive Director Saj Abdoolakhan reminded registered builders that they are responsible for correct contractual procedures.
"The buck stops with the builder and misleading conduct of any kind is unacceptable," he said.
"Home building contract laws are in place to provide clarity and protections for all parties. The requirement for genuine progress payments helps to prevent home owners being left out of pocket for incomplete work."
