Login
iscover
The former director of a Western Australian building contractor has been fined $10,000 after the company sought unjustified payments for two homes.
An insolvent Western Australian building contractor has fronted the state’s tribunal, with its former director fined for engaging in deceptive and unfair business practices.
Insolvent building contractor Modco Residential (BC103549, expired) and its director, Damien Thomas Clancy, have been fined $10,000 over unconscionable and misleading conduct.
In addition to the fine, Modco, which entered administration in July 2023, was issued a reprimand by the SAT (State Administrative Tribunal) following mediation.
Building and Energy WA said that Clancy was Modco’s sole director in 2022 when unjustified payments were sought for two homes in Maida Vale and Hammond Park.
At the Maida Vale property, Modco was found to have engaged in unconscionable conduct by demanding a lock-up stage progress payment when the project had not reached that stage.
Additionally, a contract price increase of $57,053 was sought without the company providing a valid justification.
Similarly, at the Hammond Park home, Modco was found to have engaged in misleading conduct.
The company demanded a roof cover progress payment for the home despite not having completed the work in accordance with approved plans.
Additionally, Modco was revealed to have engaged in unconscionable conduct by seeking an unjustified contract price increase of $50,075 from the Hammond Park owners.
“On both occasions, the company told the owner no further work would be scheduled until the payments were made,” Building and Energy WA said.
“Modco claimed the price increases at both properties due to building permits not being issued within the required time frames, when the company had not actually applied for the permits.”
According to the Building Services (Registration) Act 2011, unconscionable and misleading conduct are disciplinary matter.
Clancy’s mitigation submissions included unprecedented challenges affecting the building sector, remorse for the clients’ stress and inconvenience, cooperation with proceedings and the alleged influence and actions of the company’s co-owner.
Building commissioner Peter Stewart condemned Modco’s actions and warned that directors will still be held responsible for misconduct even if their companies become insolvent.
“Demanding a progress payment without providing the corresponding service or materials is illegal under home building contract laws,” Stewart said.
“Likewise, a builder must provide evidence of legitimate reasons for a contract price increase.”
“The threats to cease work until payments were made no doubt exacerbated the stress experienced by the property owners,” he concluded.
You are not authorised to post comments.
Comments will undergo moderation before they get published.