LBP struck off

A Licensed Building Practitioner (LBP) has been struck off after charging for services that he didn’t provide

Jonesy Construction director Benjamin Jones took money from between 20-27 clients to obtain Master Builder guarantees that were never lodged, according to a decision shared by the Building Practitioners Board.

To add insult to injury, Jonesy Construction entered liquidation in May 2022, leaving those clients with uncompleted homes and no insurance.

The deception was brought to light when a client of Jonesy Construction made a Master Build Guarantee claim but was told he was not insured.

“The Complainant was operating under the impression that he was covered by a Master Build Guarantee because he had completed an application form, which had been taken from him for submission to Master Build Services by the Respondent (Jonesy Construction),” said the Board. “Also, the building agreement stipulated a Master Build Guarantee. The contracted price included the Guarantee premium, and the Respondent had invoiced the Complainant for the premium, which had been paid.”

No clear explanation

During the hearing, Jones denied the failure to submit applications was due to Jonesy Construction’s difficult financial situation. He also confirmed that he was responsible for processing Master Build Guarantee applications but was “unable to offer any explanations as to why the applications were not submitted” and blamed an “administrative oversight”. His explanation was rejected out of hand by the Board, which said the scale of non-lodgement rendered his argument invalid.

A Master Builders’ guarantee covers a homeowner for ten years and begins when they sign the contract. The guarantee covers a homeowner against loss of deposit and non-completion, structural defects, materials and quality of work.

Bringing the profession into disrepute

In judgement, the Board stated: “He (Jones) was a Master Builder, knew the required processes, had possession of the form and did not submit it, and knew or ought to have known that the application had not been made. 

Given the importance of a Master Build Guarantee, the Board would expect a Master Builder, who is also a Licensed Building Practitioner, to know or check that an application has been accepted.”

The Board found that Jones brought the LBP regime into disrepute by taking Master Build Guarantee funds and forms and not processing them. As a result, it struck him off the LBP register and disqualified him from reapplying for six months. It also fined him $1,750 to cover the cost of the hearing and his offending will be recorded on the Public Register for three years.

Legal challenge

In July 2022, a group of 20 affected homeowners were planning on suing the Master Builders for refusal to honour the guarantees. They had engaged a lawyer who had handled similar cases before; however, at the time of printing, the status of the case is unclear.