VUKASINOVIC and HARIS DEVELOPMENTS PTY LTD [2026] WASAT 65
[2026] WASAT 65
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JURISDICTION : STATE ADMINISTRATIVE TRIBUNAL
ACT : BUILDING SERVICES (COMPLAINT
RESOLUTION AND ADMINISTRATION) ACT
2011 (WA)
CITATION : VUKASINOVIC and HARIS DEVELOPMENTS PTY
LTD [2026] WASAT 65
MEMBER : MR E CADE, MEMBER
MR J D ORR, SESSIONAL MEMBER
HEARD : 20 JANUARY 2026 - 23 JANUARY 2026
DELIVERED : 2 JUNE 2026
FILE NO/S : CC 229 of 2025
BETWEEN : AIDA VUKASINOVIC
First Applicant
ZELJKO VUKASINOVIC
Second Applicant
AND
HARIS DEVELOPMENTS PTY LTD
Respondent
Catchwords:
Building Services (Complaint Resolution and Administration) Act 2011 (WA) -
Building service complaint - Whether building service not carried out in a proper
and proficient manner or is faulty or unsatisfactory - Whether order to remedy or
order to pay is appropriate - Home building contract complaint - Whether builder
in breach of contract - Whether order should be made for payment of
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compensation for loss or damage caused by breach of contract
Legislation:
Building Services (Complaint Resolution and Administration) Act 2011 (WA),
s 3, s 4(1), s 5(1), s 5(2), s 6(3)(b), s 11(d), s 17(a)(i), s 36(1), s 36(1)(a),
s 36(1)(b), s 37(1), s 38(1)(a), s 38(1)(b), s 41(2)(d)(i)
Home Building Contracts Act 1991 (WA), s 17(a)(i), Pt 2
Result:
Application successful
Category: B
Representation:
Counsel:
First Applicant : Mr A Goldfinch
Second Applicant : Mr A Goldfinch
Respondent : In Person
Solicitors:
First Applicant : Stables Scott
Second Applicant : Stables Scott
Respondent : N/A
Case(s) referred to in decision(s):
Gemmill Homes Pty Ltd v Sanders [2018] WASC 179
Hippydayze Pty Ltd and Mener Group Pty Ltd [2019] WASAT 92
Marsh Outdoor Pty Ltd and Schnuriger [2021] WASAT 108
Vitte and Studio 8 Builders & Designers Pty Ltd [2013] WASAT 43
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REASONS FOR DECISION OF THE TRIBUNAL:
Background
1 Aida Vukasinovic and Zeljko Vukasinovic (together the owners)
are the applicants in this proceeding. Haris Developments Pty Ltd
(builder), represented by its sole director, Haris Hadjer, is the respondent
to the proceeding.
2 The proceeding is within the original jurisdiction of the State
Administrative Tribunal (Tribunal) pursuant to the Home Building
Contracts Act 1991 (WA) (HBC Act) and the Building Services
(Complaint Resolution and Administration) Act 2011 (WA)
(BSCRA Act). In these reasons, all references to provisions of
legislation are, unless stated otherwise, references to the BSCRA Act.
3 The proceeding concerns both a building services complaint and a
home building work contract complaint (HBWC complaint) made by
the owners to the Building Commissioner pursuant to, respectively,
s 5(1) and s 5(2). The Building Commissioner has referred the owners'
complaints to this Tribunal.
The owners' complaint items
4 On 27 October 2024 the owners gave a notice of complaint
containing 19 complaint items to the builder. This notice of complaint
was then lodged with the Building Commissioner on 11 November 2024.
5 On 11 April 2025 the Building Commissioner referred the owners'
complaint containing 33 complaint items to the Tribunal. This referral
comprised 18 of the 19 complaint items lodged by the owners with the
Building Commissioner, although those 18 complaint items were
reformulated as 22 building service complaint items (complaint items 1
to 22) and 10 HBWC complaint items (complaint items 23 to 33).
6 The complaint items the Building Commissioner referred to the
Tribunal, in summary, are:
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Building service complaint items
Item # Location Description of
Complaint Item
Remedy Sought
1 - 2 Roof frame - all
areas on the
house
Missing and improperly
installed perimeter tie
downs
Missing tie downs to be
installed and existing tie
downs to be remedied
3 - 5 External walls Various required
weepholes are missing
and existing weepholes
are blocked with mortar
and other materials
Additional weepholes to be
installed and existing
weepholes to be free from
mortar and other materials
6 - 17 Internal walls Voids and holes in mortar
between bricks
All brick joints to be
remedied and filled with
mortar as per plans and
specifications
18 – 19 Theatre room and
master bedroom
Missing cavity flashing
in walls
Missing cavity flashing to be
remedied/installed
20 Right side
boundary wall
(external) -
Master bedroom
and ensuite
Face brick walls not
jointed
All external wall joints to be
remedied. Joints to be
flushed and brushed
21 Front elevation of
house
- Theatre and
ensuite
Front elevation not built
to plans and
specifications. Roof
pitched from incorrect
height and location -
should have been pitched
from one brick course
higher.
Correct brickwork to be
installed and roof to be
pitched as per plans and
specifications
22 Roof space in
living/dining
room and kitchen
Roof beams have not
been installed in
accordance with plans
and specifications
Roof beams to be installed in
accordance with plans and
specifications
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HBWC complaint items
Item # Term Description of
Complaint Item
Remedy Sought
23 Clause 10(b) in
contract
- Delays
260 working days to
construct from January
2022. Should have been
completed in or around
January 2023. 22 months
over contract and
practical completion has
not been achieved.
Bring house to practical
completion as soon as
possible.
24 Clause 19(b) in
contract
- Delays and
Extension of
Time
Builder has suspended
carrying out works
without reasonable cause
and did not provide
official written statement
outlining cause and
extent of the delay.
Bring house to practical
completion as soon as
possible.
25 Withdrawn1
26 Withdrawn
27 Withdrawn
28 Legal costs2
29 - 33 Particulars of
contract -
specification
prepared by
Haris
Developments
The builder told us we
needed to buy some items
in 2022 so the
construction of the house
could progress (which
were included as part of
the fixed price contract).
The builder told us that
he would credit us for the
full amount of all the
items and materials that
we purchased.
$5,390 paid for kitchen
appliances
$2,230 paid for aircon
deposit
$7,564.43 for purchased
flooring and tiles.
$3,967.51 paid for tapware
$882 paid for sinks
1 In complaint items 25, 26 and 27 and in their opening submissions the owners contended that as a consequence
of the builder's breach of the written contract they are entitled to be paid compensation by the builder for the
costs of holding the partially completed home and the interest they have paid their lender since 31 January 2023
for the partially completed home. However, in their closing submissions the owners abandoned this part of
their claim. Consequently, we will now order these complaint items are withdrawn and dismissed. Therefore,
we will not consider complaint items 25, 26 and 27 in these reasons.
2 We will not deal with the owners claim for their legal costs in complaint item 28 in these reasons as this claim
should be dealt with as part of any costs claim made by the owners after the substantive issues in the proceeding
are determined.
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7 The proceeding was heard by us as a final hearing over four days
between 20 January 2026 and 23 January 2026.
Summary of the owners' contentions
8 In summary, the owners' contentions are:
(1) They entered a written home building work contract with the
builder on 11 July 2021 under which the builder is to construct a
new one-storey brick and tile home (home or works) for the
'fixed price' of $249,500 on a lot in Hamond Park which they
were then expecting to purchase and which they did in fact
purchase in late December 2021(written contract);
(2) The written contract requires the builder to build the home in
accordance with the building plans, to commence the works
within a certain time after the owners obtained title to the lot and
then upon commencing the works to bring the home to practical
completion within 260 working days (approximately one
calendar year);
(3) The builder commenced work on the home in early 2022 and so
under the written contract is required to bring the home to
practical completion by early 2023. However, the builder only
intermittently carried out work on the home between early 2022
and April 2024 and since April 2024 it has carried out no work
on the home at all;
(4) As the builder did not bring the home to practical completion
within 260 working days of commencing the works and because
it has abandoned the works it is in breach of the written contract;
(5) Mr Cable, a building inspector, found that complaint items 1 to
22 of the building work carried out by the builder under the
written contract are works which were not carried out properly or
proficiently or which are faulty or unsatisfactory; and
(6) The Tribunal should require the builder to pay to them the sum
of money Mr Peden, a costing expert, estimates is the cost of
engaging a new builder to remedy those works carried out by the
builder which were not carried out properly or proficiently or
which are faulty or unsatisfactory as well as a sum he estimates
is the cost to engage a new builder to bring the home to practical
completion.
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9 The amounts claimed by the owners are:
Costs of rectification works $138,518.00
Costs of completion $306,406.06
Credit for items purchased by
owners
$19,151.94
Total $464,076.00
Summary of the builder's response
10 In summary, the builder's response is:
(1) While some aspects of work the builder carried out on the home
is work that was not carried out properly or proficiently or is
faulty or unsatisfactory the required remediation works are
minor. The builder says it should be given the opportunity to
remedy the work it carried out on the home.
(2) While it accepts it completed the home to the roof cover stage in
April 2024 and has not carried out any further works on the home
since that date, it says it is not in breach of the verbal cost-plus
contract as, first, there is no date for completion of the home
under this contract as it was a term of that contract the builder is
to perform work on the home as and when the owners could
afford to pay it to do work and, second, the owners are themselves
in breach of the verbal cost-plus contract as they have refused to
pay it on a cost-plus basis for the work he has already carried out
as well as refusing to pay it on a cost-plus basis to perform the
outstanding works on the home;
(3) The sole purpose of the written contract the parties signed on
11 July 2021 is to allow the owners to obtain finance and the
parties did not intend for the builder to build the home under that
contract. The real contact under which the home is to be built is
a verbal cost-plus contract which the parties also entered into on
11 July 2021; and
(4) If the Tribunal does find the written contract is the contract under
which the home is to be built, it accepts it is in breach of the written
contract as it has not brought the home to practical completion as
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required by that contract and it should therefore be required to
complete the home rather than pay the owners compensation.
However, should it be required to pay the owners compensation
the builder says the proper amount is far less than the owners are
claiming.
Facts not in dispute
11 It is not in dispute in this proceeding and we find:
(1) The parties signed a written contract on 11 July 2021 in the form
of a standard Master Builder's Home Building Works Contract
(For use in works without an architect). Attached to this contract
is a one-page sketch depicting the home to be built signed by the
parties on 11 July 2021 and a two page 'Custom Specifications'
document also signed by the parties on 11 July 2021;
(2) The owners obtained title to their lot in late December 2021;
(3) The detailed building plans were not completed until 10 February
2022. These plans are, however, misdated as 10 February 2021;
(3) A building permit was issued to the builder on 21 April 2022
which expired on 21 April 2024 and has not been renewed;
(4) Between 11 July 2021 and May 2024 Mr Hadjer was a registered
builder. However, for a period of time after May 2024 he was
not registered as a builder but as the time of the final hearing he
is again a registered builder;
(5) The builder commenced work on the home in early 2022
(although whether this was in January 2022 or April 2022 is in
dispute) and the home is completed to the roof cover stage.
The last works carried out by the builder, being the roof cover
stage work (which included some plumbing and electrical work),
were carried out in or about April 2024;
(6) In accordance with the schedule set out in the written contract the
builder submitted the following payment demands to the owner:
a. Deposit demand in the amount of $16,217.50 on
12 May 2022 which the owners on 13 May 2022
authorised their lender to pay and which was paid to the
builder at around that date;
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b. Siteworks stage demand and Slab Down stage demand in
the amount of $52,395 on 4 July 2022 which the owners
on 5 July 2022 authorised their lender to pay and which
was paid to the builder at around that date;
c. Brickwork Plate High Ground Floor stage demand in the
amount of $49,900 on 17 January 2023 which the owners
on 22 January 2023 authorised their lender to pay and
which was paid to the builder at around that date; and
d. Roof Cover stage demand in the amount of $49,900 on
21 May 2024 which the owners authorised their lender to
pay on 19 July 2024 and which was paid to the builder at
around that date; and
(7) Three progress stage payments totalling $81,087.50 are yet to be
demanded by the builder, these being:
a. Lock-up stage in the amount of $37,425;
b. Tiling and Cabinetry stage in the amount of $18,712.50;
and
c. Practical Completion stage in the amount of $24,950.
Questions to be decided
12 The questions we are required to decide in this proceeding are:
With respect to the building service complaints
(1) Did the builder carry out a regulated building service?
(2) Is any aspect of the regulated building service carried out by the
builder work which has not been carried out in a proper and
proficient manner or is faulty or unsatisfactory?
(3) What is the proper remedy for any regulated building service
carried out by the builder that is work which has not been carried
out in a proper and proficient manner or is faulty or
unsatisfactory?
With respect to HBWC complaints
(1) Is the home built under the written contract or under a verbal cost-
plus contract?
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(2) If the home is built under a verbal cost-plus contract, what are the
terms of that contract?
(3) If the home is built under the written contract, is the builder in
breach of the written contract by not completing the home by the
date required under the written contract or by abandoning the
site?
(4) If the builder is in breach of the written contract should the
builder be required to complete the works or should it be required
to pay compensation to the owners for loss or damage caused by
the builder's breach?
History of the proceeding
13 This proceeding was heard by the Tribunal as a final hearing
between 20 and 23 January 2026.
14 Prior to the commencement of the final hearing and in accordance
with its usual practice the Tribunal prepared a paginated hearing book
for the use of the parties and the Tribunal at the final hearing.
This hearing book comprised the documents lodged by the parties in
accordance with programming orders made by the Tribunal (differently
constituted) at various directions hearings prior to the final hearing.
15 At the commencement of the final hearing this hearing book was,
with the consent of the parties, admitted into evidence and marked
Exhibit 1. Significantly, Exhibit 1 contains a number of reports which
had been lodged by the owners, these being:
(1) Investigation Report by Jake Daley-Cook, Authorised
Investigator from the Department of Energy, Mines, Industry
Regulation and Safety (DEMIRS) dated 11 April 2025, with
associated Proposed Building Remedy Order dated 9 April 2025;
(2) Plate Height Inspection Report by Paul Cable, Building Inspector
and Registered Builder, dated 28 September 2023;
(3) Roof Frame Inspection Report by Paul Cable, Building Inspector
and Registered Builder, dated 28 September 2023;
(4) Report 1: Rectification Works by Graham Peden, Quantity
Surveyor and Construction Cost Consultant, dated
4 September 2025; and
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(5) Report 2: Outstanding Works by Graham Peden, Quantity
Surveyor and Construction Cost Consultant, dated
4 September 2025.
16 During the course of the hearing Exhibit 1 was supplemented by a
number of documents tendered without objection by both the owners and
the builder.
The evidence
Mr Cable
17 Mr Cable is a qualified bricklayer and registered builder who has a
qualification in building and several decades of experience in the
building industry in both the United Kingdom and Australia. Prior to
giving his evidence Mr Cable confirmed he understood the obligations
of an expert witness. Mr Cable was called by the owners to give evidence
at the final hearing as to which aspects of the work carried out by the
builder were 'non-compliant' with relevant Australian Standards and/or
the building plans.
18 Mr Cable's oral evidence was, subject to some exceptions,
consistent with the evidence he gave in his written reports.
19 Mr Cable was cross-examined at length by the builder. He also
responded to some inquiries made with him by the Tribunal.
20 Mr Cable's evidence is as follows:
Complaint items 1 - 2: The purpose of roof tie downs is to anchor
the roof frame to the masonry structure to prevent the roof from
lifting due to wind. In order to properly anchor the roof frame to
the masonry structure the building plans require roof ties to be
installed at intervals of 1,200 mm along the external wall.
This was not done by the builder. The solution is to retrofit the
missing tie downs at the intervals required by the plans.
Complaint items 3 - 5: Weepholes are narrow channels inserted
into the mortar at the bottom of brick work or above window
cavities which allows moisture which enters the cavity between
the external and internal walls (including condensation) to leave
the cavity, as well as allowing air to enter the cavity and dry out
any residual moisture. Moisture which does not dry out or escape
from the cavity will enter the home where it is likely to damage
paint, plaster, tiles and carpet as well encouraging the growth of
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mould. Weepholes are usually installed by a bricklayer during
the process of building a wall, but they may also be retrofitted to
an existing wall. Weepholes should not be blocked by mortar
dropped into the cavity when laying the internal brick work.
Weepholes in many of the external brick walls are either missing
or blocked and there are none at all in the right boundary wall.
The solution is to retrofit weepholes at the required intervals of
1,200 mm but where they cannot be retrofitted, such as in the
right boundary wall, it is necessary to demolish the wall and build
it new with weepholes.
Complaint items 6 - 17: There are voids in mortar between bricks
in the internal walls. The purpose of this mortar is to stabilise the
internal walls and assist them to bear loads. Mortar containing
voids in the internal walls risks the walls cracking or being unable
to bear the load of the tiled roof. The solution is to fill the voids
with new mortar.
Complaint items 18 - 19: Cavity head flashings are missing in
the external walls of the master bedroom ensuite and theatre room
immediately below the front elevation. This flashing is a
waterproof material which is placed between the external and
internal walls near roof height, particularly above windows
and other voids in the wall. The purpose of the flashing is to
channel moisture which enters the void at roof height along the
length of the flashing to the end of wall where it can then drain
into the cavity between the walls and then, via the weepholes at
the base of the wall, drain out of the cavity. That is, this flashing
assists in preventing moisture from entering the home. In the
absence of demolishing and re-building the entire front elevation
a solution is to prop the roof, demolish a course of bricks, install
the missing flashing and then reinstall the demolished brick work.
Complaint item 20: The face brick on the right external boundary
wall is not jointed, flushed or brushed, that is, the mortar between
the bricks on this face brick is not only unsightly but is irregular
and contains voids. Voids in the external mortar of this wall will
collect rain even though the face of wall is partially protected by
the neighbour's boundary wall. Water collected in a void in this
wall will transfer into the cavity behind the external wall and
from there it may travel into the interior of the home. This is
particularly the case with this boundary wall as contrary to the
building plans it has no weepholes installed at the base of the
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wall. However, because the length of this boundary wall is only
120 millimetres from the neighbouring boundary wall it is not
possible to access the length of the wall so as to fill the voids in
the external face of the mortar.
Complaint item 21: The missing course of bricks in the front
elevation was difficult for him to detect. When he attended the
site, he could see the front elevation was different to the plans,
but it was not at first obvious to him how it was different.
In order to find out why it was different he needed to count each
course of bricks in the front elevation before he realised that a
course of bricks specified in the building plan was missing.
This course of bricks should be installed, which will require the
demolition and rebuilding of the entire front aspect of the home.
Complaint item 22: A steel beam above the living/dining room is
not positioned in accordance with the engineering drawings in
the building (structure) plans. As this beam is part of the
structure of the home it should be positioned only in accordance
with the plans or repositioned in accordance with written advice
from a structural engineer. A structural engineer will therefore
now need to give written advice as to whether it is properly
placed. It should also be welded to an adjoining beam, but this
has not been done.
21 The evidence Mr Cable gave that was not consistent with the
opinions in his reports relates to concessions he made when certain
matters of detail were drawn to his attention by either the builder or the
Tribunal. In the Tribunal's opinion, Mr Cable's concessions were
appropriate and do not detract from his credibility.
22 Mr Cable's concessions included the following matters:
(1) He accepts his evidence relates to the state of the home as it was
on 28 September 2023, that is, prior to the installation of the roof
cover;
(2) He accepts that only a portion of the front elevation was not built
in accordance with the building plans but that in practice it was
not possible to build the front elevation in accordance with the
building plans. He accepts the difference between the front
elevation as built and as it appears in the building plans does not
diminish the internal dimensions of any room in the home and
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that the pitch of the roof above this elevation is in accordance
with the plans; and
(3) He accepts that if the steel beam above the living/dining room
had been installed in accordance with the building plans it would
have intruded into the interior of the living room and that it may
therefore be appropriate to instal it in a different manner.
However, it remains his opinion that any alternative installation
must be considered by a structural engineer in order to determine
if it is structurally sound.
23 Mr Cable rejected the suggestion put to him by the builder that he
had tailored his opinions in order to advantage the owners or that he had
entered into a corrupt agreement with the owners to share with them the
benefit of an inflated compensation order.
Mr Peden
24 Mr Peden has a qualification in building, a graduate qualification in
quantity surveying and several decades of experience in quantity
surveying in the building industry in both the United Kingdom and
Australia. Prior to giving evidence Mr Peden confirmed he understood
the obligations of an expert witness.
25 Mr Peden was called by the owners to give evidence at the final
hearing both as to as to the cost of the works identified by Mr Cable as
requiring remediation and as to the cost of bringing the home to practical
completion in accordance with the building plans and specifications.
26 In his first report, Mr Peden estimates the cost of engaging a builder
to carry out remedial works on the home to be:
Rectification Works Amount
To instal 77 tie downs between the masonry structure and the roof
frame (that is, to instal a tie down to the roof frame at each of the
intervals required by the building plans):
5,775
To attach two tie down rods to the roof frame: 250
Builder's preliminaries for these tasks: 8,000
Sub-total: 14,925
To form 32 weepholes at 1200mm centres at base of walls and also
above window heads:
2, 560
Filling voids in mortar in 730 sq m of internal walls: 20,440
Install missing cavity flashing to front elevation (master bedroom
ensuite and theatre room):
13,700
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Rectification Works Amount
To secure steel beams in living room and to allow coordination with a
structural engineer to arrive at a satisfactory solution and sign off:
(provisional
sum) 7,000
Builder's preliminaries for these tasks: 3, 500
Sub-total 47,200
Builder's margin, risk & attendance 8,000
Right side boundary wall demolition and replacement (if required) 22,800
Front elevation demolition and replacement (if required) 38,500
Total 77,138
27 In his second report, Mr Peden estimates the cost of engaging a
builder to complete the works to be:
Completion Works3 Amount
Lock-up 84,265
Tiling and cabinetry 72,328
Practical completion 107,418
Sub-total 296,011
GST 29,601
Builder's margin, risk and attendance 32,000
Total 325,612
28 Mr Peden gave evidence that was, subject to some exceptions,
consistent with his reports.
29 Mr Peden was cross-examined at length by the builder and he also
responded to some inquiries made by the Tribunal.
30 The evidence that Mr Peden gave that was not consistent with his
reports includes evidence that both supplemented the opinions he gave
in his reports as well as some matters that were not consistent with the
opinions he gave in his reports.
31 The evidence Mr Peden gave that supplemented the opinions in his
reports relate to the following matters:
(1) While he did estimate the actual cost to engage a builder to carry
out the remediation and completion works, he also allowed an
additional sum of $8,000 with respect to the rectification works
and $32,000 in respect of the completion works for 'Builder's
margin, risk & attendance';
3 Mr Peden provided a detailed schedule of the works required within each of the remaining progress stages,
but for the purposes of these reasons it is not necessary to set these out in full.
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(2) He explained 'risk & attendance' represents as money the
statutory liability a new builder would take on by performing
remediation and completion works on the home. It also includes
the risk that during the course of performing the works the builder
might discover that it required more materials, trades, expertise
or more expensive work practices than it had allowed for in an
agreed contract price;
(3) He explained that 'risk & attendance' is difficult to quantify as it
depends on variables such as the willingness of a builder to take
on remedial and completion work as well as the knowledge a
builder could obtain about the quality of the existing works.
This is because even should a prospective new builder inspect the
existing works it was unlikely it would, through inspection, ever
acquire complete knowledge about the risk it was taking on by
performing such works;
(4) The proper costing of small, risky works such as the works
required to remediate and complete this home needs to take into
account the fact that the building industry in Western Australia is
working at full capacity. This means builders and trades are able
to pick and choose what work they take on. Remediation and
completion works, which by their nature are small works which
carry a relatively high degree of risk, are unlikely to attract
interest unless they are priced with an attractive allowance for
'builder's margin, risk & attendance';
(5) It will be a time-consuming task to locate a builder who might be
interested in taking on small remedial or completion works.
This is because builders would need to be approached
individually, the work explained to them, they would then need
to be willing to attend and inspect the site and even after all this
it is likely that many would not agree to take on the work. It is
difficult to say how long it would take to find a builder willing to
take on the work, but it would be reasonable to allow 2 to
3 months for this step. The builder will then need to put together
a team of trades with the relevant skills and then schedule these
trades around their availability. It may therefore take around a
year to actually carry out both the remediation and completion
works;
(6) The estimate for the completion works provided by
EP Constructions WA given to him by the builder is a quote and
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is therefore not a reliable basis on which to cost the completion
of the home as it does not involve a contractual obligation to
perform the works for the amount given in the quote. There is
usually a substantial difference between the price of a build as
estimated in a quote and the price which is later stated in a
binding fixed price building contract; and
(7) It is not proper, as suggested by the builder, to estimate the cost
of completing the works by using the cost of the remaining stages
in the written contract and then increasing this amount by a
percentage to represent the increase in the price of labour and
materials since July 2021.4 This is because, for example, the
remaining contract price might not have represented the correct
cost of labour and materials even at July 2021. As well, this
methodology does not make any allowance for 'margin, risk
& attendance' which is necessary to attract a builder to take on
work that is, objectively, small and risky when there is plenty of
other work they could take on instead.
32 The evidence Mr Peden gave that was not consistent with the
opinions in his reports related to concessions he made when certain
matters of detail were drawn to his attention by either the builder or the
Tribunal. In the Tribunal's opinion, Mr Peden's concessions were
appropriate and do not detract from his credibility.
33 Mr Peden's concessions included the following matters:
(1) He accepts the roof cover on the home is tile rather than
Colorbond as he originally stated;
(2) He now accepts that roof ties can be fitted into the wall cavity
and do not need to be attached to the internal wall, as he had
originally stated;
(3) He accepts his estimates of cost are only his best estimate and
that the actual cost of performing the remedial and completion
works may well turn out to be different. With respect to the
remediation works, he accepts that his estimates would need to
be revised down if there was a cheaper way of performing the
4 The cost of labour and material in the residential building industry increased 40.8% between
September quarter 2020 to June quarter 2024: Australian Bureau of Statistics (2 August 2024),
https://www.abs.gov.au/articles/insights-output-building-construction-prices, ABS Website, accessed
2 June 2026.
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rectification works than the method he had relied upon in his
costing. For example, he accepts that it would be much cheaper
to apply a waterproof bitumen paint to the exterior of the
boundary wall than it would be to demolish and re-build the wall.
However, his task was to do his best to cost the rectification
works that were proposed by Mr Cable and it was not for him to
determine what rectification works were required nor how they
were to be done. Therefore, he could not say whether applying a
bitumen paint to the wall would in fact be an adequate way of
waterproofing the wall;
(4) He accepts there might be an alternative means of remedying the
absence of weepholes in the right boundary wall other than
through the demolition of the wall and construction of a new wall.
While it is not for him to say what such an alternative should be
it might include something like drilling into the masonry at the
base of the exterior wall although this will be difficult to do as
the neighbour's boundary wall is only 120 mm from the owner's
wall, and to do this from inside the home would also be difficult
as the weepholes need to be at the base of the exterior wall which
is lower than the base of the interior wall;
(5) He accepts it might well be proper to make an allowance in his
estimate for the cost of goods purchased by the owners if these
goods were to be supplied by the builder under the written
contract; and
(6) He accepts that the cost of the completion works for the
outstanding progress stage payments not yet demanded by
the builder under the written contract should be offset against his
estimated cost of completing the home.
34 Mr Peden rejected the suggestion put to him by the builder that he
had tailored his opinions in order to advantage the owners or that he had
entered into a corrupt agreement with the owners to share with them the
benefit of an inflated compensation order.
Zeljko Vukasinovic
35 Mr Vukasinovic is the second applicant in this proceeding and he
gave evidence on behalf of both owners. It is clear from
Mr Vukasinovic's evidence that he was the sole point of contact between
the owners and the builder.
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36 Mr Vukasinovic's evidence is that:
(1) The owners first met the builder a few weeks before 11 July 2021.
At that time the owners intended to purchase a lot on which to
build a new home. At their first meeting the owners discussed
their budget with the builder and the type of home they wanted;
(2) The owners operate a small multi-media business from their
home. They have no experience in the building industry and
relied on the builder to guide them through the process of
building their home;
(3) Between their first meeting and 11 July 2021 their ideas about
the design of their home developed and various designs were
provided to them by the builder. However, by 11 July 2021 they
had settled on a design and a price with the builder and
they believed that the builder would build this home for them for
the agreed price of $249,500. They therefore entered into the
written contract with the builder on 11 July 2021;
(4) The owners at all times believed there was only one contract
under which their home is to be built and this contract was the
written contract dated 11 July 2021. All their discussions with
the builder were on the basis of this 'fixed price' contract and they
never had any discussions with the builder about entering into a
cost-plus contract;
(5) It took longer than they expected to acquire the lot and they only
became the owners of it in late December 2021;
(6) They believe the builder commenced work on the home by
performing site works on the lot in January 2022;
(7) The progress stage payments demanded by the builder were in
accordance with the written contract and they authorised their
lender to pay each of these demands;
(8) The builder has never given them a notice of variation of price or
a variation to the scope of works nor has it ever given them a
notice of extension of time under the written contract;
(9) They believe they did everything they reasonably could to engage
with the builder and they were patient even when the building
work was not completed by January 2023. However, it became
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clear during 2023 that the builder was not progressing the works
and was avoiding contact with them as it would not answer their
telephone calls, it would not respond to their emails and nor
would it respond to their text messages;
(10) In September 2023, after many failed attempts to speak to the
builder, they engaged a solicitor who on 27 September 2023
wrote to the builder and demanded that the builder resume work
on the home and also meet with the owners to agree a program
for the completion of the works, failing which the owners would
exercise their legal rights under the contract and the BSCRA Act.
This letter also notified the builder the owners would engage a
building inspector to inspect the works. The builder did not,
however, either resume work on the site and nor did it agree to
meet with the owners;
(11) In about April 2024 the builder installed the roof cover on the
home. This was the last work the builder carried out on the home;
(12) On 27 October 2024 the owners gave a notice of complaint
containing 19 complaint items to the builder and because the
builder did not resume work on the home they lodged their
complaint with the Building Commissioner on
11 November 2024; and
(13) All that they really want is for their home to be completed in
accordance with the written contract but as the builder has done
no work on the home since about April 2024, it has not given
them a concrete plan about when it would recommence the
remaining work and that it let the building permit expire on
22 April 2024 they have no faith the builder will ever do any
more work on their home.
37 Mr Vukasinovic was cross-examined extensively by the builder.
In cross-examination Mr Vukasinovic accepted some matters that were
put to him by the builder but rejected others. In particular:
(1) He accepts the building plan referred to in the written contract is
the one-page sketch which is signed by the owners and the
builder and is dated 11 July 2021 that appears in Exhibit 1
immediately before the written contract. That is, he accepts the
building plan referred to in the written contract is not the five
pages of plans in Exhibit 1 that come immediately after the
written contract dated 10 February 2021;
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(2) He accepts the building plans dated 10 February 2021 are
misdated and should be dated 10 February 2022;
(3) He rejected the suggestion the owners on 11 July 2021 entered
into a verbal cost-plus contract which was to be the true basis on
which the home was to be built;
(4) He accepted that shortly after 11 July 2021 the owners paid the
builder $17,000, that this was not a payment required under
the written contract and that he had not previously mentioned this
payment in this proceeding. However, he rejected the suggestion
the payment is evidence that the contract under which the home
is to be built is a cost-plus contract. When asked by Mr Hadjer
to explain why he paid this money to the builder when it was not
required under the written contract he explained that Mr Hadjer
had asked him to assist him with some 'capital' as a 'small boost'
to its business which would be repaid by the builder through a
credit in that amount on a progress stage payment or, if the
owners wanted to increase the scope of works, by giving a credit
in that amount to a price variation. However, the builder did not
ever give the owners a credit in that amount on a progress stage
payment and nor did the owners, with one exception dealt with
below, ever ask the builder to increase the scope of works.
When asked to explain why he had not mentioned this payment
before he explained that as he gave the money in cash he thought
that it would be futile to request the builder repay it;
(5) With one exception, he rejected the suggestion the owners had
demanded changes to the home which they agreed would
increase the price of the home. The exception involved his
request that additional power points be installed in the garage for
which he agreed to pay the builder $3,000. However, he rejected
the suggestion his request for additional power points
demonstrated that the contract under which the home is built is a
cost-plus contract. Rather, he said, the builder had contacted him
and told him that the electrician was attending the site on a certain
day and he could attend the site and tell the electrician if he
wanted anything extra installed. He did this and told electrician
that he would like additional power points installed in the garage.
He knew he would have to pay extra for these power points as
they were not included in the written contact. The electrician
then installed the additional power points in the garage and the
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builder requested $3,000 for this work which he then paid to
the builder;
(6) While he agreed he met with the builder on site and had a
discussion about the steel beams in the living room he denies he
authorised the builder in this conversation to depart from the
building plans. He said he left matters such as this to the builder
as neither he nor his wife are qualified to say whether any aspect
of the works is structurally sound; and
(7) He rejected the suggestion he had tailored his evidence in order
to advantage the owners or that he had entered into a corrupt
agreement with Mr Cable and Mr Peden to share with them the
benefit of an inflated compensation order. He said that Mr Cable
and Mr Peden had in fact been chosen, engaged and instructed by
his solicitors and that neither he nor Ms Vukasinovic had
exchanged more than a few words with Mr Cable or Mr Peden
before the final hearing.
Haris Hadjer
38 Mr Hadjer is the sole director of the builder. He gave evidence on
behalf of the builder.
39 Mr Hadjer's evidence is:
(1) He is a registered builder and is the builder's authorised building
supervisor. He is the sole director of the builder and is the only
person associated with the builder;
(2) He is a graduate engineer and until about 10 years ago he worked
as an engineer. He has been employed as an engineer by
international companies in Western Australia, the
United Kingdom and Iraq;
(3) He founded the builder on his return to Western Australia about
10 years ago and over that time it has built about 50 homes in
Western Australia;
(4) He understands that many people who are building a home would
like a home that is of a better standard and so will cost more than
the amount they can borrow from a lender. The arrangement he
will enter into with such an owner is that he will agree to create
a 'fixed price' contract and he will issue progress stage demands
under this contract. This 'fixed price' contract allows the person
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to obtain finance and the progress stage demands he gives to the
owner will permit the bank to transfer funds to the builder.
However, the builder does this on the express understanding that
the 'fixed price' contract and the progress stage demands are
fictions and the actual contract under which the home is to be
built is, in reality, a verbal cost-plus contract with the work to
be done as and when the owners can afford to pay for it be done;
(5) It was necessary to keep this verbal cost-plus contract hidden
from the owners' lender and so he did not confirm it in writing
with them. However, it is confirmed by the $17,000 payment the
owners made to the builder before it commenced work on the
home and the $3,000 payment the owners made to the builder
during the course of the construction.
(6) It is also confirmed by the many changes the owner made to the
building plans between 11 July 2021 and the commencement of
construction in April 2022. The builder notes that the only design
included in the written contract is a one-page sketch signed by
the owners and the builder on 11 July 2021. As the builder
correctly says, this sketch is not sufficient for a builder to use to
construct a home and further plans needed to be drawn up which
were finalised, after many changes demanded by the owners, on
10 February 2022 (despite being actually dated
10 February 2021) as ' Version: REV A'. He says these changes
were not the subject of a written variation as to give the owners
a written variation would have affected their ability to obtain
finance. The absence of these documents as well as the absence
of any notice of extension of time shows that this home is not
being built under a 'fixed price' contract but is being built under
a cost-plus contract;
(7) It is yet again confirmed by the purchases made by the owners of
certain goods for use in the home, which would make no sense
unless they and not the builder were the ones liable to pay for
those goods. That is, it would make no sense for the owners to
buy the goods if the builder was liable to purchase and instal
those items under a fixed price contract as any savings made by
these advance purchases would benefit of the builder and not the
owners;
(8) The way the builder went about building this home is very
different to how it deals with owners under a 'true fixed price'
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contract. When he negotiates with owners who are truly entering
into a 'fixed price' contract he will require the owners to enter into
a preparation of plans agreement (PPA) under which the owners
are required to pay for the work carried out by the builder in
preparing the 'fixed price' contract such as the cost of preparing
the building plans. This can include, as it did here, up to
120 hours of work to draft a custom set of building plans. In this
way, if the owners decide they do not want to enter into the 'fixed
price' contract the builder is not out of pocket. The absence of a
PPA in this matter shows that the home is not built under a true
'fixed price' contract but rather is built under a cost-plus contract;
(9) Due to the owners' refusal to honour the verbal cost-plus contract
the builder has itself had to pay for the substantial increase in the
cost of labour and materials that emerged after the COVID-19
emergency, as well as the costs associated with the increased
scope of works required by the owners. The builder eventually
stopped work on the home when it could no longer afford to cover
these cost increases;
(10) At 11 July 2021 he owned the home he lived in with his wife and
children and two investment properties. However, as he has
given a personal guarantee to the builder he has had to sell two
of his homes in order to finance the builder's operations and he
and his family are now living in a small apartment. He says the
builder cannot fund any more work on the home unless he sells
the apartment in which he is living, which will leave him and his
family homeless;
(11) The builder believes the owners are looking to exploit the
builder's willingness to sign the sham written contract. That is,
the owners are now improperly relying on the written contract to
require the builder to pay for the substantial but undocumented
increases to the scope of works they had verbally agreed to with
the builder and for the substantial increases in the cost of labour
and materials since 11 July 2021 which they are liable for under
the verbal cost-plus contract;
(12) The owners are responsible for the delay in completing the home
because they have refused to honour the verbal cost-plus contract
and pay for the increased scope of works or for the increase in
the cost of labour and materials since 11 July 2021;
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(13) As to the alleged defects in the home:
a. He accepts the steel beam above the living/dining room
has not been installed in accordance with the plans.
However, if it had been installed in accordance with the
plans it would have intruded into the ceiling of that room.
Therefore, as a matter of practical necessity, this beam
needed to be installed other than in accordance with the
plan. When he realised this needed to be done he
telephoned the structural engineer who had approved the
building plans who gave him verbal approval to instal
the beam in the way he did. He also met with
Mr Vukasinovic at the site and told him about the
problem and was given the owners approval to change
the installation of the beam. The join between the beams
was welded when the roof tiles were installed;
b. He accepts the building plans show 33 rows of bricks in
one area of the front elevation although there is only
32 courses of bricks in that area, as there is in all other
areas of the front elevation. However, just because of this
the front elevation should not be demolished and re-built.
This is because as a matter of practical necessity the
course of brick the owners claim is missing cannot now
be installed without then changing the roof. The missing
course of bricks does not alter the internal dimensions of
any internal room. Consequently, if this course of bricks
is installed then major changes will be required to the
remaining areas of the front elevation and to the roof,
which would make those areas inconsistent with the plans
all for no practical benefit;
c. He accepts cavity head flashings should be installed in the
external walls of the master bedroom ensuite and theatre
room, but this flashing can be easily and cheaply
installed;
d. He accepts that not all roof ties have been installed at the
intervals indicated in the plan. This is partly because roof
ties are not required on a tiled roof and partly because if
they were to be installed at those intervals then some of
them would then need to be placed above a window void,
which is impractical. Roof ties are not required for a tiled
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roof because tiles are heavy and so hold down the frame
and also because, if wind does get under the roof, it blows
individual tiles off the roof but does not lift a section of
the roof. The roof ties that can be seen in the photographs
taken by the building inspector were properly installed at
the time the roof tiles were installed. If additional ties are
needed, they can be easily and cheaply installed;
e. The missing mortar in the internal walls can be easily
rectified by one or two tradespersons in one day or
possibly two days at the rate of about $1,000 to $1,500 a
day. These trades can, when doing that work, also easily
rectify the visible portions of each end of the boundary
wall; and
f. The boundary wall does not need to be demolished.
This is because weepholes are not needed in a boundary
wall but if they are required they can be easily drilled into
the mortar at the bottom of the wall. If there is a need to
waterproof the external part of the wall this can be done
easily by putting on a coat of bitumen paint and also, with
the neighbour's approval, putting a cover over the gap
between the two boundary walls.
Consideration and findings - Building service complaints
Did the builder carry out a regulated building service?
40 Under s 5(1) an owner may make a complaint to the Building
Commissioner that a regulated building service has not been carried out
in a proper or proficient manner or is faulty or unsatisfactory.
A 'regulated building service' under s 3 is 'a building service carried out
by a registered building service provider' that is carried out for another
person under a home building work contract or other contract for gain.
41 We are satisfied the builder was a regulated building service
provider at the time it carried out works on the home and that it did so
pursuant to a contract for gain. While we note the parties dispute whether
the contract under which the building service was carried out by the
builder was the written contract or a verbal cost-plus contract this
controversy is not relevant to our consideration of this building service
complaint.
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42 Should the Building Commissioner refer a building service
complaint to the Tribunal under s 11(d) the Tribunal is able, under
s 38(1)(a), to make a building remedy order if satisfied the regulated
building service has not been carried out in a proper and proficient
manner or is faulty or unsatisfactory. If not so satisfied the Tribunal is,
under s 38(1)(b), to decline to make a building remedy order. We note
the Building Commissioner did refer complaint items 1 - 22 to this
Tribunal as a building service complaint.
43 As this Tribunal (differently constituted) explained in
Marsh Outdoor Pty Ltd and Schnuriger [2021] WASAT 108 at [34] the
phrase 'has not been carried out in a proper and proficient manner or is
faulty or unsatisfactory' within s 5(1) and s 37(1) is a broad expression
which incorporates two distinct limbs, such that:
a) the description 'in a proper and proficient' attaches to the manner
in which the regulated building service has been carried out;
b) the phrase 'is faulty or unsatisfactory' makes it clear that this
element attaches to the regulated building service itself … ;
c) those limbs are not exclusive, with the result that deficiencies in
a regulated building service may in certain circumstances fall
under both limbs; and
d) whether either limb is engaged is to be determined on an objective
basis.
44 Under s 36(1), the Tribunal may make a building remedy order
requiring the person who carried out the regulated building service to do
one or more of the following:
(1) Remedy the building service in the manner specified in the order;
(2) Pay to the owners the costs of remedying the building services
which the Tribunal considers reasonable and which it specifies in
the order; and
(3) Pay to the owners a specified sum of money to compensate the
owners for the failure to carry out the building service in a proper
and proficient manner for faulty or unsatisfactory work.
Complaint items 1 - 2: roof tie-downs
45 Mr Cable says the certified BG Structural Engineers drawing detail
T4 requires the home's '[r]oof to be tied down in accordance with
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AS1684' and the 'Tie Down Specification Roof Cladding: Tiled …' detail
D.1.1 requires the roof beams to be tied down to the external wall plate
at '…each side of corners … and at 1200ctrs max elsewhere'. However,
Mr Cable says that his inspection shows that while some tie downs have
been installed they are not installed at the required intervals of 1,200 mm.
46 In response, the builder does not dispute that at the time Mr Cable
inspected the home on 28 September 2023 the roof beams were not tied
down at intervals of 1,200 mm. Nonetheless, the builder says:
(1) It believes that the roof beams have, since 28 September 2023,
been tied down at intervals of 1,200 mm;
(2) The relevant Australian Standards do not require the roof beams
of a tiled roof to be tied down at all, let alone at intervals of
1,200 mm; and
(3) It is impractical to tie down the roof beams at intervals of
1,200 mm as this would require installing tie downs through
multiple window cavities.
47 When considering these complaint items, we have examined the
certified BG Structural Engineers drawing and we are satisfied it does
require the roof beams for this tiled roof to be tied down at each corner
and then at intervals of less than 1,200 mm. We also reviewed AS1684
and we are satisfied this standard also requires a home's roof beams to be
tied down at intervals of no less 1,200 mm. Finally, the Tribunal is
satisfied that the BG Structural Engineers drawing detail T4 and AS1684
set out minimum standards for the construction of a timber framed home
with a tiled roof for wind classification N1, with one purpose of this
standard being to prevent wind damage to the roof and roof frame.
48 In our view it is practical to tie the roof beams down at these
minimum intervals even with window cavities in the wall as all that is
required to be done is to instal a tie down at each side of a window cavity.
49 While we note the builder's declaration that it believes that the roof
beams have, since 28 September 2023, been tied down at intervals of
1,200 mm we note the builder provided no details that would persuade
us its belief is correct. For example, the builder did not say that it had
engaged a tradesperson since 28 September 2023 to instal any additional
tie down straps and nor did the builder say it had inspected the home and
had satisfied itself that additional tie down straps had, since
28 September 2023, been installed. Indeed, given the builder does not
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accept that tie down straps should have been installed at intervals of
1,200 mm or less and that it would be impractical to do so, we doubt the
builder did engage a tradesperson to instal additional straps or that it ever
did inspect the home to determine if such additional straps had ever been
installed.
50 As the roof frame is not tied down to the external masonry walls at
the required intervals we are satisfied and we find the roof framework
carried out by the builder on the home is a regulated building service
which was not carried out in a proper and proficient manner or is faulty
or unsatisfactory. We are therefore required to make a building remedy
order under s 36(1).
51 The owners seek a building remedy order under s 36(1)(b) the
builder pay them the cost of installing the missing tie downs. The owners
say that an order under s 36(1)(a) that the builder remedy the building
service 'would be wholly unrealistic, unworkable and of no utility'.
The owners also note that the sole director of builder, Mr Hadjer, has
stated he has twice applied for a violence restraining order against the
owners and has twice made complaints to police about the owners.
52 When considering this issue, we are mindful of the following:
• The owners do not have a right to elect an order under s 36(1)(b)
that the builder pay them the costs of remedying the work, but
they may express a preference for such an order: Gemmill Homes
Pty Ltd v Sanders [2018] WASC 179 [134].
• Due to Mr Hadjer's attempts to obtain a violence restraining order
against the owners and his complaints about them to police he
appears to be afraid the owners will inflict violence upon him
(although the owners deny they want to do this) so, at least from
the builder's perspective, its relationship with the owners has
irretrievably broken down.
• That the relationship between the builder and the owners has
broken down is less important in this matter than it would be if
the home had reached practical completion and was inhabited by
the owners. That is, this is not a situation where the builder needs
to enter the owner's residence to perform works.
• The owners have lost confidence the builder will ever perform
any further works on the home. The owners since April 2024
have repeatedly asked the builder to recommence work on the
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home by email and text message but the only response the builder
has made to those requests is to say it is willing to carry out work
on the home so long as the owners agree to increase the contract
price: Hippydayze Pty Ltd and Mener Group Pty Ltd
[2019] WASAT 92 [126].
• The owners have lost confidence the builder has the financial
capacity to perform any of the remedial works. This is because
the builder has said the reason it stopped work on the home in
April 2024 is because it could no longer afford to build it under
the written contract and it has said that it will only perform more
work on the home if it is paid more for each of the remaining
progress stage payments than is set out in the written contract.
• The owners have lost confidence in the workmanship and skill of
the builder. This is because the builder denies the work it has
carried out is not proper and proficient or is faulty or
unsatisfactory. With respect to these complaint items the owners
say that despite the tie downs being stated as necessary in
AS1864 and in the structural engineers drawing the builder still
believes a tiled roof does not need to be tied down to a masonry
wall.
53 We are satisfied for these reasons that, in the words of the owners,
an order under s 36(1)(a) the builder remedy the building service 'would
be wholly unrealistic, unworkable and of no utility'. That is, we are
satisfied and we find that the relationship between the parties has
irretrievably broken down, that the owners have justifiably lost
confidence in the skill of the builder to perform the remedial work but
most importantly we are satisfied the builder does not have the financial
resources to perform any significant remediation work on the home.
54 We therefore find an order under s 36(1)(b) the builder pay to the
owners the costs of installing the missing tie downs is justified.
While we accept Mr Peden did concede that tie downs can be installed
into the masonry cavity and that more tie downs are in place than he had
thought we are nonetheless satisfied that the estimate of $6,000 he gave
in his first report for the cost of installing the tie downs is reasonable.
This is because the cost of installing tie downs in the cavity will be very
nearly the same as the cost Mr Peden estimated of installing them on the
interior wall.
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Complaint items 3 - 5: external walls, missing weepholes and blocked
weepholes
55 Mr Cables inspection reveals, first, while some weepholes have
been installed in the front, left and rear side walls of the home that they
are not installed at the required intervals and that some of the weepholes
that have been installed are blocked by mortar that has dropped into the
cavity between the external and internal brick walls and, second, that
weepholes have not been installed at all in the right boundary wall.
This, they say, is contrary to the requirement in the BG Structural
Engineers drawings that brickwork be 'in accordance with AS 3700
and NCC'.
56 The owners say the absence of weepholes in the right boundary wall
is the most significant problem as this wall has been built to within
120 millimetres of the neighbour's boundary wall with the result it is not
possible to now instal the required weepholes, with the result the wall
needs to be demolished and built new with weepholes.
57 In response, the builder says it does not dispute that some weepholes
in the external walls are blocked by mortar, that some of the weepholes
that are installed are not at the intervals stated in the AS 3700 and the
NCC and that no weepholes have been installed in the right boundary
wall. However, the builder says that blocked weepholes can be cleared
by drilling through the weepholes and that all missing weepholes
(including any that might need to be installed in the right boundary wall)
can also be installed by drilling into the mortar at the external base of the
wall. The builder also says weepholes do not need to be installed in
boundary wall.
58 When considering these complaint items, we examined the certified
BG Structural Engineers drawing and we are satisfied these do require
the brickwork to be in accordance with AS 3700 and NCC. Relevant to
these complaints, these standards do require weepholes to be pipes or
ducts installed immediately above the footing under the external walls
and to be free of 'mortar or other material that will prevent their proper
functioning'. The BG Structural Engineers drawing requires weepholes
to be installed in all the masonry walls in the home, which in the
Tribunal's opinion requires that they also, contrary to the builder's
contention, be installed in the right boundary wall.
59 We accept Mr Cable's report that some weepholes are missing,
particularly in the right boundary wall where there are none, and that
even those weepholes that have been installed are not at the required
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minimum intervals and that some are obstructed by mortar dropped in to
the cavity. We also accept Mr Cables evidence that weepholes are a
necessary part of a system which channels moisture in the wall cavity to
leave the building. For the reasons given by Mr Cable we also accept his
evidence as to the importance of moving moisture out of the home's
cavity.
60 We therefore find that the builder's construction of the external
walls of the home is a regulated building service carried out by the
builder that has not been carried out in a proper and proficient manner as
these walls are not constructed with an adequate number of unobstructed
weepholes and in the case of the right boundary wall with any weepholes
at all. We are therefore required to make a building remedy order under
s 36(1).
61 The owners seek a building remedy order under s 36(1)(b) the
builder pay them the cost of clearing the obstructions between the
existing weepholes and installing the missing weepholes.
62 For the reasons set out above, which we shall not repeat, we are
satisfied an order under s 36(1)(a) that the builder remedy the building
service 'would be wholly unrealistic, unworkable and of no utility'.
We therefore find an order under s 36(1)(b) the builder pay to the owners
the costs of clearing the obstructions in the existing weepholes and
installing the weepholes in the right boundary wall is justified.
63 The solution recommended by Mr Cable is to drill new weepholes
into the external face of the front, left and back walls and to demolish the
right boundary wall and build it new with weepholes. The demolition of
the right boundary wall, we note, would also remedy complaint item 20.
64 Mr Peden provided an estimate of the cost of installing additional
weepholes to the front, left and rear walls of the home to be $2,560 and
the cost of demolishing the right boundary wall and rebuilding it with
weepholes to be $22,800.
65 There was little controversy as to the cost of installing weepholes to
the front, left and rear walls of the home. This is because those walls are
able to be accessed from their external face. We find Mr Peden's estimate
for the cost of these works to be reasonable.
66 There was much controversy, however, about how to remedy the
missing weepholes in the right boundary wall. This is because the right
boundary wall of the home and the boundary wall of the neighbour's
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home is only 120 mm away making it impossible to access this wall
externally. There was extensive discussion with Mr Peden as to whether
it might be possible to knock out some bricks from the internal right
boundary wall and then drill a weephole through the external wall but it
was ultimately accepted that this was not an adequate solution as the
weephole needed to be installed at the base of the external wall which
was significantly lower than the internal wall.5 It was also postulated
that doing this work might damage a termite barrier.
67 Regrettably, therefore, the only practical solution to installing
weepholes in the right boundary wall is to prop the roof, demolish the
wall and build it new with weepholes and when doing so to make sure
the external face of the wall is properly jointed. We find Mr Peden's
estimate for the cost of these works to be reasonable.
Complaint items 6 - 17: voids and holes in mortar in brickwork of internal
walls
68 It is not in dispute the mortar between bricks in the internal walls
was well below standard in that it contained many voids. We accept
Mr Cables evidence that mortar between bricks in the internal walls is
necessary to prevent the walls from cracking and is also necessary to
support the weight of the tile roof.
69 For these reasons we are satisfied and we find the internal brick
work carried out by the builder on the home is a regulated building
service which was not carried out in a proper and proficient manner or is
faulty or unsatisfactory as it contains numerous voids. We are therefore
required to make a building remedy order under s 36(1).
70 The solution recommended by Mr Cable is to fill the voids with
mortar. We accept this is the proper solution for these complaint items.
For the reasons set out above, which we shall not repeat, we are satisfied
an order under s 36(1)(a) that the builder remedy the building service
'would be wholly unrealistic, unworkable and of no utility'. We therefore
find an order under s 36(1)(b) the builder pay to the owners the costs
filling the voids in the brickwork of the internal walls is justified.
71 Mr Peden estimates the cost of filling the voids in the internal walls
to be $20,440. While the builder did not dispute the voids in the mortar
in the internal walls needed to be filled with fresh mortar, he said this
5 Mr Hadjer appeared at one time to concede it was not possible to instal weepholes in the right boundary wall
by drilling them from the inside of the home: ts, 283, 23 January 2026.
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could be done by one or two tradesmen over 1 to 2 days for no more
than $2,500.
72 We accept Mr Peden's point that the building industry at this time
is working at capacity. We also accept Mr Peden's point that small
remedial works need to offer an attractive margin but we think that this
is less important when it is carried out along with a more substantial piece
of work such as the demolition and rebuilding of the right boundary wall.
In our view, the work of filling the voids in the internal walls can be
carried out by a bricklaying team for a cost of $5,000 at the same time
the right boundary wall is demolished and built new.
Complaint items 18 - 19: missing cavity head flashings
73 It is not in dispute the cavity head flashings in the front elevation
are missing and need to be installed. We accept Mr Cable's evidence that
these cavity head flashing are a necessary part of a system which
channels moisture which enters the wall cavity at roof height to leave the
building. We also accept his evidence about the importance of
channelling moisture out of a building.
74 For these reasons we are satisfied and we find the work on the front
aspect of the home carried out by the builder is a regulated building
service which was not carried out in a proper and proficient manner or is
faulty or unsatisfactory as does not contain cavity head flashings. We are
therefore required to make a building remedy order under s 36(1).
75 The solution recommended by Mr Cable is to prop the roof,
demolish a row or several rows of bricks, instal the missing cavity head
flashing and replace the demolished rows of bricks. We accept this is
the proper solution for these complaint items. For the reasons set out
above, which we shall not repeat, we are satisfied an order under
s 36(1)(a) that the builder remedy the building service 'would be wholly
unrealistic, unworkable and of no utility'. We therefore find an order
under s 36(1)(b) the builder pay to the owners the costs installing the
missing cavity head flashings on the front aspect of the home is justified.
76 Mr Peden estimates the cost of installing the missing flashing in the
manner recommended by Mr Cable to be $13,700. We accept
Mr Peden's point that this is skilled work, that the roof needs to be
propped in order to carry out the work and that it is remedial work that
is by its nature not attractive to builders. We therefore accept
that Mr Peden's estimate that this work will cost $13,700 to be
reasonable.
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Complaint item 20: face brick walls not jointed on right boundary wall
77 Given the orders we will make with respect to complaint items 3 to
5 which will involve the demolition of the right boundary wall and
building it new this complaint item falls away. We will therefore dismiss
this complaint item.
Complaint item 21: missing course of bricks front elevation
78 It is clear from Mr Cable's evidence that one length of the front
elevation of the home has one less course of bricks than is stated in the
building plans and that for this reason this aspect of the home looks
different to how it is depicted in the sketch attached to the written
contract.
79 It is also clear from Mr Cable's evidence this missing course of
bricks does not affect the internal dimensions of the home, that the pitch
of the roof above the missing bricks is in accordance with the building
plans and that the only effect of the missing course of bricks is that one
area of the front elevation looks slightly different to how it is depicted in
the sketch attached to the contract. Indeed, so slight is this difference
that it took some time for Mr Cable to determine the cause of the
difference was a missing course of bricks.
80 It is also clear from Mr Cable's oral evidence that it would be a
complex task to instal the missing course of bricks. This is because the
installation of an additional course of bricks would change the pitch of
the existing roof such that for the roof to then be in accordance with the
building plans the front portion of the roof cover and frame would need
to be removed and replaced with a custom designed new frame and with
a new roof cover.
81 The builder agrees with Mr Cable's evidence on these matters and
adds that for this reason it is obvious the building plans are in error in
requiring an additional course of bricks on this part of the front aspect
and that it was therefore proper for the builder to omit this course of
bricks when building the home.
82 Mr Peden estimates the cost of installing the missing course
of bricks to be $38,500, but Mr Peden was not asked to estimate the cost
of removing and replacing the roof frame and roof cover which, as it
turns out, would be required once the missing course of bricks is
installed. The actual cost of the work would therefore likely be several
multiples of the cost estimated by Mr Peden.
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83 We therefore agree with the builder the building plans are in error
in requiring an additional course of bricks on a length of the front aspect
of the home.
84 We also accept that the only effect of the omission of this course of
bricks is to slightly change the look of the front aspect of the home from
how it is depicted in the plans. That is, we are satisfied the missing
course of bricks does not diminish the look of the front aspect of the
home and that it is only noticeable to someone who compares it to
the sketch attached to the written contract. We are also mindful that the
owners themselves attach little importance to this complaint item.
85 Therefore, while we are satisfied the construction of the front aspect
of the home is a regulated building service we are not satisfied it was not
carried out in a proper and proficient manner or that it is faulty or
unsatisfactory. We therefore must decline to make a building remedy
order under s 36(1) and we will dismiss this complaint item.
Complaint item 22: roof beam not installed in accordance with plans
86 It is clear from Mr Cable's evidence that one beam above the living
room/dining room is not positioned as required by the building
(structural) plans and that at the time he inspected the home the beam
had not been welded as required to an adjoining beam. It is also clear
from Mr Cable's evidence that if the beam had been positioned as
required in the building (structural) plans that it would have intruded into
a decorative cathedral ceiling which would have been unsightly.
In Mr Cable's opinion, while it was desirable to place the beam in a
different position this is a change to the building (structural) plans which
should be approved in writing by a structural engineer. As Mr Cable is
not a structural engineer, he is not able to say whether the position of the
beam is structurally sound.
87 While the builder agrees with almost all of Mr Cable's evidence it
says it consulted with the owners about repositioning the beam who
approved this change, and that he has verbal approval from a structural
engineer to reposition the beam. He also says that since Mr Cable's
inspection the beam has been welded to an adjoining beam.
88 We note here that clause 3(a) of the written contract states that if
there is a discrepancy or ambiguity in the drawings that the builder must
refer the matter to the owners who must direct the builder in writing what
is to be done. Under that clause, if the owner fails to direct the builder
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what is to be done within 5 working days of the request the builder may
determine what is to be done.
89 We have considered the evidence given by Mr Cable and the builder
and we agree with both that if the beam was installed in accordance with
the plans, it would be unsightly as it would intrude into the cathedral
ceiling and that it was proper to reposition the beam to avoid this.
However, we agree with Mr Cable the beam is a structural component of
the home which should be repositioned only in accordance with the
written advice of a structural engineer. Given that the beam supports
the roof frame and tiles we do not accept that it is sufficient for the
builder to obtain verbal advice from an engineer to reposition the beam.
We also do not accept that the owners could approve the repositioning of
the beam.
90 For these reasons we are satisfied and we find the placement of this
beam is work that is a regulated building service which was not carried
out in a proper and proficient manner or is faulty or unsatisfactory as it
is a structural component of the home which has not been placed in a
position approved in writing by a structural engineer. We are therefore
required to make a building remedy order under s 36(1).
91 The solution recommended by Mr Cable is to consult with a
structural engineer as to whether the placement of the beam is
satisfactory. For the reasons set out above, which we shall not repeat,
we are satisfied an order under s 36(1)(a) that the builder remedy the
building service 'would be wholly unrealistic, unworkable and of no
utility'. We therefore find an order under s 36(1)(b) the builder pay to
the owners the costs of consulting with a structural engineer is justified.
Mr Peden estimates the cost of this, as a provisional sum, to be $7,000.
While we think that this is high for the work required, we do accept it
requires an engineer to inspect the beam on site and within the context
of some extensive remediation works that will be carried out on the right
boundary wall. We therefore accept Mr Peden's estimated cost for this
work to be reasonable.
92 In summary, the builder remedy orders we will make are:
Items 1 - 2 $6,000
Items 3 - 5 $22,800
Items 6 - 17 $5,000
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Items 18 - 19 $13,700
Item 20 dismissed
Item 21 dismissed
Item 22 $7,000
Total $54,500
93 However, as we will explain later in these reasons, we will make a
HBWC remedy order requiring the builder to pay the owners
compensation for the increase in the cost to them of now bringing their
home to practical completion which will make allowance for the amounts
given by Mr Peden for 'builder's margin, risk and attendance'.
Because we expect the builder who will carry out the completion works
will be same builder who will carry out the remedial works we will not
make such an allowance in this building service remedy order for
'builder's margin, risk and attendance'.
Consideration and findings - HBWC complaints
Is the home built under the written contract or under a verbal cost-plus
contract?
94 It is not in issue in this proceeding that:
(1) The parties signed the written contract on 11 July 2021;
(2) The written contract is a 'fixed price' contract; and
(3) There are no text messages, emails or any other written document
that confirms the parties entered into a cost-plus contract.
95 This written contract meets the requirements for a home building
work contract set out in s 4(1) of the HBC Act as it is a contract between
an owner and builder for the performance by the builder of home building
work, it is not a cost plus contract and it is a contract which is more than
$7,500 and less than $500,000, it is in writing setting out all the terms
conditions and provisions of the contract, it shows the date of the
contract, it is signed by the owners and the builder and it includes
the required notice.
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96 We note here that each of the progress stage payment demands
given by the builder to the owner were given shortly after the stage the
subject of the demand was completed and was for the amount set out in
the written contract. We also note there is no evidence the builder ever
demanded an additional 'cost-plus' stage payment when it sent its
demands to the owners and that the builder only suggested the home was
being built under a verbal cost-plus contract well after it had stopped
work on the site. Despite this, we will consider the circumstances which
the builder says proves the home is, in truth, built under a cost-plus
contract which includes:
(1) The $17,000 payment which Mr Vukasinovic made to the builder
in cash before the works commenced;
(2) The $3,000 payment which Mr Vukasinovic made to the builder
for the installation of additional power outlets in the garage;
(3) The purchase by the owners of certain goods for use in the home;
(4) The absence of a written price variation, variation as to scope of
works or notice of extension of time; and
(5) The absence of a PPA prior to entering into the written contract.
97 With respect to the $17,000 payment made by the owners to the
builder we note that while both parties agree that Mr Vukasinovic made
this payment in cash to the builder at some time in late 2021, they are in
dispute as to the purpose this payment was made. Mr Vukasinovic says
that the payment was made at the builder's requests to provide the builder
with 'capital' and it would be returned to the owners at some time during
the construction of their home in the form of a credit. The builder
appears, however, to say this payment was made for variations to the
scope of the works which resulted in an increased contract price with
the reason that no written notice of the price variation was given to the
owners being the need to conceal this transaction from their lender.
98 After considering these matters we are satisfied they do not prove
the parties entered into a 'cost-plus' contract for the building of the home.
This is because we believe that during the construction period between
April 2022 and April 2024 there were substantial increases in the cost of
labour and materials so if the home had truly been built under a 'cost plus
contract we would have expected the builder to have demanded the
owners pay these price increases at each of the progress stages.
However, it is clear the builder did not do this.
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99 With respect to the $3,000 payment and the $17,000 payment made
by the owners to the builder we also find these payments were made for
the reasons told to us by the owners and not because they were payments
under a verbal cost-plus contract.
100 The issue of the purchase of goods by the owners is, in our view,
more difficult to understand outside of a cost-plus contract. The builder's
contention that it would make no sense for the owners to make an
advance purchase of goods to be used in the home unless the owners
were responsible for purchasing them under a cost-price contract has
some force. The only explanation the owners were able to give the
Tribunal as to why they purchased the goods is that the builder asked
them to make those purchases and warehouse them until needed.
Ultimately, we consider this issue is neutral as it is as equally likely the
owners purchased the goods to avoid a price increase as it is that an
undercapitalised builder who wanted to avoid an increase in the price of
goods would ask an owner to purchase them.
101 It is clear that both parties agree the builder has never given the
owners any written notices under the contract. The owners say this is
because the builder has had no right to do this as, apart from requesting
additional power points in the garage, they have not made any request to
the builder to change the scope of works in the written contract.
The builder says that the owners made many changes to the scope of
works in the period 11 July 2021 to February 2022 but that it was agreed
between them that no variation would be issued to the owners as to do
this would alert their lender to the true arrangement under which the
home was to be built, which was a cost plus agreement.
After considering this matter we are satisfied that it is more likely than
not that the reason why the no such notices were issued by the builder is
for the reasons given by the owners, which is that the builder had no basis
for issuing a notice under the written contract rather than because the
parties had agreed to create no documents that might indicate to
the owners lender the true arrangement under which the home was to be
built. This is because we do not accept that a variation due to a change
in design would indicate to a lender that the home was being built under
a cost-plus contract, that is, it does not indicate anything other than the
owners were wanting to change the design.
102 Similarly, we find the absence of a PPA prior to the parties entering
into the written contract does not indicate anything one way or another
about the type of contract under which the home was to build. This is
because a PPA could apply to a home to be built under a cost price
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contract just as much as it would apply to a home to be built under a
'fixed price' contract.
103 Most importantly, however, we observe there is no
contemporaneous evidence in the way of an email or text message that
directly confirms the builder's contention that the parties entered into a
cost-plus contract on 11 July 2021 or that the parties conducted
themselves on the basis that they had entered into such a contract.
The best that can be said about the builder's contentions is that apart from
his own oral evidence there is some evidence which is at best neutral as
to whether the parties did enter into such contract. However, the contrary
position is much stronger. That is, there is considerable
contemporaneous evidence that there is only one contract under which
the house was to be built which was the written contract.
104 Therefore, we find the parties did not enter into a verbal cost-plus
contract on 11 July 2021. Consequently, we also find the written contract
is the contract under which the home is built.
If the home is to be built under the written contract, is the builder in
breach of the written contract by abandoning the site or by not completing
the home by the date required under the written contract?
105 For the purpose of this proceeding the most significant terms of the
written contract are:
(1) Clause 1 of the 'Agreement' which is the promise by the builder
that 'Subject to the Conditions' it will 'complete the Works
shown on the Drawings and described or referred to in the
Specification and elsewhere in the Contract Documents';
(2) Clause 2 of the 'Agreement' which is the promise by the owners
that they will pay the builder the 'sum of Two Hundred and
Forty Nine Thousand and Five Hundred Dollars ($249,500)
including GST (Contract Sum) as adjusted in accordance with
the contract, at the times an in the manner specified in the
Conditions.';
(3) Appendix I:
a. item 2, 'Time to commence the Works' is 20 working
days;
b. item 3, 'Time from commencement to complete the
Works' is 260 working days; and
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c. item 7, the home is to be build '[b]y progress of the Works
in stages', being:
Deposit (6.50%) 16,217.50
Siteworks (6.00%) 14,970.00
Slab down ground
floor
(15.00%) 37,425.00
Brickwork plate
high ground floor
(20.00%) 49,900.00
Roof cover ground
floor
(20.00%) 49,900.00
Lock-up (15.00%) 37,425.00
Tiling and
Cabinetry
(7.50%) 18,712.50
At practical
completion
(10.00%) 24,950.00
Total contract
sum
$249,500.00
(4) Conditions of Contract, 'Discrepancies and Ambiguities',
clause 3(a) which states 'If the Builder finds any discrepancy or
ambiguity in the Drawings or between the Drawings and the
Specification, the Builder must immediately refer the matter to
the Owner who must direct the builder in writing what is to be
done. If the Owner fails to direct the Builder within 5 Working
Days of the request for directions, the Builder may determine
what is to be done';
(5) Conditions of Contract 'Date for Commencement and Time for
Completion, clause 10(a) 'The Builder must commence the
Works within the number of Working Days in Appendix I Item 2
of whichever is the latest of: … (ii) The owner delivering to the
Builder evidence of title to the land …';
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(6) Conditions of Contract 'Owner's Access to Site', clause 13(a)
which in substance permit the owner or a duly appointed
presentative to have access to the site and to inspect and view
progress of the Works during the builder's normal working hours;
(7) Conditions of Contract 'Variations':
a. clause 16(a) - (c) which in substance requires variations
agreed to by the builder to be in writing, to set out the cost
and terms of the variation, to show the date of the
variation and to be signed by the parties; and
b. clause 16(g) which in substance does not enable the
builder, except by agreement with owners in accordance
with clause 16(c), as a consequence of law or because of
a delay beyond 45 working days after the date of the
contract which is caused solely by the owners under
clause 25(h) or 34, to vary the contract by reason only of
an increase in the costs of labour or materials to be
incurred by the builder;
(8) Conditions of Contract 'Delays and Extension of Time', which
requires the builder by no later than the date of Practical
Completion to notify the owners in writing of the cause and
extent of the delay and entitles the builder to be paid reasonable
costs arising from any extension of time.
106 It is clear that the written contract requires, subject to a variation
given under the contract, a notice of extension of time6 or due to certain
circumstances set out in the written contract (such as by a consequence
of law, which are not relevant in this proceeding), the builder to bring the
home to practical completion within 260 working days of commencing
the work.
107 It is also clear that the builder under the written contract was
entitled, if it thought it had grounds to do so:
a. To have required the owners to produce to the builder evidence
of title to the land on which the works are to be executed, and to
have terminated the contract if the owners failed to do so within
10 working days of such a request: clause 7; and
6 Under clause 19(b) the builder is not required to submit any notice of extension of time up to the days of
practical completion.
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b. To have issued a written notice of price increase to the owners if,
due to delay by the owners the builder is not able to obtain a
building permit within 45 working days of the date of the
contract. However, if such an increase exceeds 5% of
the contract sum then owner may terminate the contract within
10 working days of receiving such a notice: clause 34 (d).
108 However, the builder accepts it did none of these things.
109 The builder says that as it commenced work on the home no earlier
than 22 April 2022 and the home it is not yet at practical completion.
We are satisfied that given the date on which the building permit was
issued and the dates on which the builder gave the owners its first
progress stage demand that it is more likely than not that the builder
commenced work on the home after 22 April 2022.
110 We therefore also satisfied that the builder, under the written
contract, was required to bring the home to practical completion by no
later than 8 May 2023 and in not doing so it is in breach of the written
contract. We are also satisfied and we find that because the builder has
not carried out any work on the home since April 2024, that it has let the
building permit lapse, that it has let its site insurance lapse and that it
does not possess the finance necessary to fund the next stage of the works
that it has abandoned the site.
111 We are satisfied that the builder's failure to bring the home to
practical completion by 8 May 2023 as required by the written contract
and by abandoning the site in April 2024 that the builder is in breach of
clause 10(b) and clause 19(b) and item 3 of Appendix I of the written
contract. We are also satisfied that the owners have suffered loss and
damage due to the builder's breach and that the quantum of loss
and damage suffered by the owners must include the amount above the
contract price which it will now cost them to complete their home.
112 Mr Peden estimates the cost of engaging a new builder to complete
the home including GST and 'builders margin, risk and attendance' to be
$325,612.
113 The builder contends that any amount we order it to pay the owners
to complete the home should not include the cost of goods purchased by
the owners, it should not include an amount of 'builders margin, risk and
attendance' and it should be reduced by the sum of the progress stage
payments remaining under the written contract. That is, the builder says
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Mr Peden's estimate of the cost of completion of the home should be
reduced as follows:
Mr Peden's estimate of the
cost of completion:
$325,612.00
Minus $19,151.94
Minus $32,000.00
Minus $81,087.50
Total $193,372.56
114 We agree with only one part of the builder's contentions which is
that the owners' loss and damage should be limited to the amount above
the contract price which it will now cost them to complete their home.
That is, we will deduct from Mr Peden's estimate the remaining progress
stage payments or $81,087.50. However, we also agree with the owners
that the goods they purchased at the invitation of the builder should
properly be included in these progress stage payments and so will add to
Mr Peden's estimate $19,151.94 which is the cost to the owners of
those goods.
115 As the builder accepts the owners also paid the builder $17,000 in
late 2021 for which they were given no value by the builder we also find
the owners have suffered loss and damage in this amount.
Are the owners entitled to compensation due to the builder's breach?
116 Pursuant to s 41(2)(d)(i) we may order the builder 'pay specified
compensation for loss or damage' caused by any breach of the written
contract or of a provision of Part 2 of the HBC Act.
117 Pursuant to s 17(a)(i) of the HBC Act each complaint by the owners
that the builder is in breach of the contract must not be a breach in respect
of which a building remedy order may be made. The Tribunal is satisfied
that each HBWC complaint made by the owners is not a breach in respect
of which a building remedy order may be made.
118 Pursuant to s 6(3)(b) each breach complaint made by the owners
must be made not more than 3 years after the cause of action arose.
In this case, the Tribunal is satisfied that as the builder commenced to be
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in breach on 9 May 2023 that each of the owners' complaints was made
within the required 3 year period.
119 We note the written contract does not limit the compensation the
owners may claim for delay by setting a rate for liquidated damages.
Therefore, if the owners are entitled to claim compensation for their
losses due to a breach by the builder then their compensation is not
limited by the written contract and they are able to claim their actual
losses.7
120 For these reasons we are satisfied under s 43(1) that complaint items
23 and 24 and 29 to 33 inclusive are HBWC complaint items which have
been referred by the Building Commissioner to this Tribunal. Given our
findings the written contract is a home building work contract and that
the builder is in breach of the written contract we are now justified in
making a HBWC remedy order under s 41(2)(d)(i) that the builder pay
to the owners the following specified compensation for the loss and
damage they have suffered by the builder's breach:
Mr Peden's estimate of the cost of
completion:
$325,612.00
Minus remaining stage payments $81,087.50
Plus, costs of goods purchased by
owners
$19,151.94
Plus, money paid to the builder $17,000.00
Total: $280,676.44
Orders
The Tribunal orders:
1. Pursuant to s 38(1)(b) of the Building Services (Complaint
Resolution and Administration) Act 2011 (WA), in relation to
complaint items 25, 26 and 27, the Tribunal declines to make a
building remedy order and those items are dismissed.
7 See Vitte and Studio 8 Builders & Designers Pty Ltd [2013] WASAT 43.
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[2026] WASAT 65
Page 47
2. Pursuant to s 36(1)(b) of the Building Services (Complaint
Resolution and Administration) Act 2011 (WA), by no later than
17 July 2026 the respondent must pay $54,500 to the applicants,
this being the cost of remedying complaint items 1 to19 inclusive
and complaint item 22.
3. Pursuant to s 43(1)(a) and s 41(2)(d)(i) of the Building Services
(Complaint Resolution and Administration) Act 2011 (WA), by
no later than 17 July 2026 the respondent must pay compensation
to the applicants in respect of complaint items 23 and 24 and
29 to 33 inclusive, in the amount of $280,676.44.
I certify that the preceding paragraph(s) comprise the reasons for decision of
the State Administrative Tribunal.
MR E Cade, MEMBER
2 JUNE 2026
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