Cross-border pool builder fined $30,000+ for false insurance certificate

A Victorian pool builder has been fined $31,732 for undertaking work in New South Wales without Home Warranty Insurance in place, demanding excessive deposits and using a false Home Warranty Insurance Certificate in the construction of an in-ground swimming pool.

The fine was greater than the cost of the entire build.

Glenrowan West pool builder Ian Andrew Lee, trading as Leisure Pools Yarrawonga, was found guilty in Albury Local Court on Monday 12 November, under the Crimes Act 1900 and the Home Building Act 1989.

In November 2011, one month after completing the $29,900 pool at Mulwala, Mr Lee knowingly used a false Home Warranty Insurance Certificate which he presented to Corowa Shire Council for the purposes of obtaining development approval. He had been warned previously by the council he could not commence work on the contract until he had obtained a valid certificate or an owner builder permit.

Mr Lee’s clients only learnt from the council that their pool had been built without a permit after it had been completed. NSW Fair Trading investigators uncovered the fraudulent certificate in March 2012.

Investigators also found that Mr Lee had demanded a deposit of $22,390 from his client before commencing any work, vastly exceeding the maximum deposit of 5 per cent of the contract price, as stipulated in the Home Building Act.

NSW Commissioner for Fair Trading, Rod Stowe, warned consumers that their builder has to provide them with a copy of a valid Home Warranty Insurance Certificate before any residential building work with a contract price over $20,000 starts.

“Any builder or tradesperson who tells you they do not need insurance if the value of work exceeds $20,000, or who suggests you obtain your own owner-builder permit, should be reported to Fair Trading,” he said.