A building contractor based in Perth has been fined $5,000 for using a falsified home indemnity insurance (HII) certificate in a building permit application.
Midnight Construction Group Pty Ltd was found by the WA Building Services Board to have breached regulations under the state’s builder registration laws, intending to mislead the City of Stirling.
HII is a legal requirement for residential building projects in Western Australia valued above $20,000. It provides financial protection for homeowners if the builder cannot complete or fix construction work due to insolvency, death, or other specified reasons.
According to the board, the company submitted a building permit application for a residential project in Yokine in December 2023. Alongside the application, it provided an HII certificate that was later identified as fraudulent.
The certificate contained fabricated details, including an invented policy number, with information typed over sections of redacted text.
At the time of the submission, Midnight Construction Group had not obtained legitimate HII coverage.
The company later applied to its insurer, QBE, for the required insurance. An authentic HII certificate was issued in March 2024, allowing the City of Stirling to grant the building permit shortly thereafter.
WA Building Commissioner Saj Abdoolakhan said HII requirements are a crucial component of home building laws and ensure that homeowners are protected.
“This conduct undermines the protections provided by WA’s home building contract laws and the overall integrity of the building approvals process,” he said.
He added that the City of Stirling’s checks helped prevent potential risks to the homeowner, who otherwise might have been exposed to financial losses without valid insurance.
Homeowners are encouraged to verify the authenticity of HII certificates through QBE’s Builders Warranty Insurance Certificate Register to avoid potential issues.
In light of home building issues, the State Insurance Regulatory Authority (SIRA) has commenced a review of the Home Building Compensation Fund (HBCF) to address concerns over its capacity to protect homeowners involved in residential construction and renovation projects in New South Wales.
The review will examine several key issues affecting the effectiveness of the HBCF, including:
SIRA chief executive Mandy Young emphasised the importance of this initiative in improving protections for NSW homeowners.
“This review marks a significant step forward for families investing in their homes in NSW, ensuring the fund remains a robust safeguard,” she said.
