A VBA investigation has uncovered the systemic misuse of compliance certificates by the CEO and chairman of one of Australia's largest national plumbing companies.
Jonathan Stoddart, a licensed plumber who lives in Queensland, owns Stoddart Group which supplies, installs and manufactures building products for Australia's housing market.
The Stoddart Group employs more than 500 staff and 650 subcontractors and claims to represent about 20 per cent of Victoria's residential roofing market.
The VBA's proactive inspections team audited three sites in Truganina, Burnside and Seaholme where Stoddart had signed compliance certificates from his Brisbane base.
At all three sites the practitioner's business model involved subcontracting to Victorian licensed plumbing companies but at Truganina and Seaholme, VBA inspectors found unauthorised individuals carrying out plumbing works.
At the Burnside site, the licensed practitioner did not comply with a VBA rectification notice within the required timeframe.
A disciplinary inquiry heard the Stoddart Group's business model relies heavily on a variety of delegations in relation to quality and compliance controls and other aspect of its operations.
Under the Building Act, the person taking responsibility for approving compliant works must personally inspect the work and cannot delegate this responsibility.
By failing to satisfy the personal requirement of supervision, Mr Stoddart signed compliance certificates that contained misstatements of fact.
Compliance certificates are issued by licensed plumbers to certify the work they carry out complies with all the relevant standards, codes and regulations.
An independent delegate made the decision to fine Stoddart more than $16,000 plus external costs incidental to the inquiry – just short of the maximum penalty available under the Act. A requirement to undertake specific training was also imposed. This decision has been stayed while it is appealed to VCAT.
The VBA will continue to closely monitor Stoddart and his plumbing activities to ensure he complies with the Building Act.
The VBA is also engaging with the plumbing industry to develop guidance on supervision obligations under the Act.
Quotes attributable to VBA Commissioner and Chief Executive Officer Anna Cronin
"The integrity of compliance certificates is vital in holding plumbers to account and this finding underlines their role in protecting consumers."
"This investigation shows the VBA will not tolerate practices that compromise consumer protection, no matter how big or small an operation you happen to be."
"Always ensure your licensed plumber issues a compliance certificate within five days of completing work valued at $750 or more to protect yourself against faulty work."
