LBP board strips builders of licenses

Three cases recently brought before the Building Practitioners Board highlighted the importance of acting with honesty and integrity

Ronald Carmichael, Zi Xiang Lin (also known as Jiew Chong) and Steven Morrow all had their licenses cancelled after it was found they brought the LBP scheme into disrepute.

Zi Xiang Lin

Hamilton-based Lin, who acted fraudulently by using false information and making a false declaration when applying for his Brick and Blocklaying licence, was found to have:

• Been convicted of an offence punishable by imprisonment for six months or more that reflects adversely on his fitness to carry out building work.
• Made a false and misleading declaration for the purpose of becoming licensed.
• Acted in a manner that would bring the LBP scheme into disrepute.

As a result, his licence was cancelled, with a stand-down period of five years before he can reapply.

Steven Morrow

Morrow, also based in Hamilton, held Carpentry and Foundations licenses. He was previously imprisoned for two years after being convicted of offences under the Tax Administration Act, which the Board determined was linked to Mr Morrow’s fitness to be licensed. The board found that he had:

• Been convicted of an offence punishable by imprisonment for six months or more that reflects adversely on his fitness to carry out building work
• Acted in a manner that would bring the LBP scheme into disrepute.

The Board cancelled Mr Morrow’s licences, with a stand-down period of three years before he can reapply.

 Ronald Carmichael

Christchurch-based Carmichael, who held a Carpentry licence, was engaged to build a new dwelling. He incorrectly quoted the cost of the building, meaning that final costs were $100,000 above the contract price.

He also failed to correctly read and interpret the plans and to price the project based on the actual size of the dwelling and the materials required.

The homeowner also stated that she had not received a record of work from Mr Carmichael and that he had refused to provide one. The territorial authority did not receive a copy, despite his claims to the contrary.

The board found that Mr Carmichael:

• Carried out building work in a negligent or incompetent manner
• Failed to provide a record of work as required by the Building Act
• Acted in a manner that would bring the LBP scheme into disrepute.

Mr Carmichael also did not meet the requirements of Part 4A of the Building Act 2004 in relation to contracts for building work. Variations (described as ‘extras’) were not dealt with in accordance of the legislative requirements.

The Board cancelled Mr Carmichael’s licence with a stand-down period of 24 months before he can reapply.

All three men were also required to pay costs towards their inquiries. A more in-depth article on the LBP scheme and the above cases will feature in the upcoming print issue of Under Construction.

Key learnings

As an LBP, it’s critical you understand your regulatory and contractual obligations. Work that costs $30,000 or more (including GST) requires a written contract by law, along with the requirement that certain other documents be provided BEFORE any building work is started.

NZS 3902:2004 is a standard building contract you can use for clients/home owners who engage you to build their house, or undertake simple building work or alterations. MBIE has sponsored access for anyone to view and print this standard at no charge.

How you conduct yourself is also important. If you are convicted of certain offences that reflect adversely on your fitness to hold a licence, you could have your licence cancelled even if the offending occurred before you were licensed.