MBIE targets unlicensed builder behaviour

An LBP who failed to renew his licence – and subsequently presented himself as an LBP – has been fined more than $10,000 following an investigation by Ministry of Business, Innovation and Employment (MBIE)’s Occupational Regulation team  

For years, Under Construction has reported on LBP complaints and resulting decisions decided by the Building Practitioners Board (the Board). However, the Board can only investigate and hear complaints about the conduct of LBPs who hold a current licence. This means it’s unable to pursue any action against builders pretending to be licensed, which appears to be an increasing issue.

However, as National Manager Occupational Regulation Duncan Connnor explains, there are still avenues available to the team.

“Under Section 11 of the Building Act 2004 – which establishes the roles and responsibilities of different entities within the building regulatory system – it specifies that it is a function of MBIE’s Chief Executive to take enforcement action for offences under the Building Act, which includes offences relating to carrying out or supervising Restricted Building Work (RBW).”

Investigate and punish

Recently, MBIE has used this power to investigate unlicensed builders, including 57-year-old Richard Dodd.

“LBPs are required to relicense every year. Mr Dodd’s licence was suspended in June 2021, following his failure to renew his practising licence pursuant to section 293 of the Building Act 2004. When their licence is suspended, the building practitioner is prohibited from carrying out RBW.

“Once an LBP is suspended (regardless of the manner of suspension), the LBP Public Register is updated accordingly to reflect this.”

The investigation by MBIE’s Occupational Regulation team claimed that, while Dodd was suspended, he carried out a renovation project and misled Auckland Council during its inspection of the building by stating he was an LBP, as well as issuing a Record of Work (RoW) stating that he held an LBP Carpentry licence upon completion of the project.

Following the conclusion of the investigation by MBIE’s Occupational Regulation team, Dodd was found to be in breach of Section 85 of the Building Code 2004 (carrying out RBW while unlicensed); Section 369 of the Building Act 2004 (making a false or misleading oral statement); and Section 369 of the Building Act 2004 (making a false or misleading written statement).

Big fine

Though Dodd was found to have misled Auckland Council, he was fined $3,279.80 by Kaitaia District Court for carrying out RBW while unlicensed and ordered to pay reparation costs of $4,880.81. Additionally, he was ordered to pay $1,000 for emotional harm to the homeowner, and received a $1,000 fine for providing false and/or misleading oral information and a $1,000 fine for providing false and/or misleading written information.

Suspended for non-renewal

Auckland Council Manager, Field Surveying, Jeff Fahrensohn said that Auckland Council wasn’t aware that Dodd was working without a licence as it was not originally revoked due to a complaint, but rather due to him not renewing his licence when it lapsed in June 2021.

“MBIE normally advises us when an LBP has been suspended on disciplinary grounds but, because he voluntarily decided not to renew his licence, we were only notified in June 2022 when contacted by the MBIE LBP investigator.

“Up until 15 June 2022, Mr Dodd continued to use his unlicensed LBP registration in Auckland.”

Fahrensohn added that it is the LBP’s responsibility to inform the inspector if the status of their licence has changed.

“Unfortunately, if the LBP does not advise us, we will not know about this until we receive their RoW memorandum at the code compliance certificate (CCC) stage. At this stage, we check the register to confirm the licence is valid.”

Countrywide issue

Christchurch City Council Acting Head of Building Consenting, Steffan Thomas, said it also only checks the LBP registry during the CCC stage.

“When building work involves RoW, the application for CCC must be accompanied by RoW from the relevant trade LBPs. These RoW are checked to see if the signatory is on the LBP register. At the time of inspections involving RBW, the name and number of the relevant LBPs are also recorded by the inspectors.”

Southland District Council checks the Public Register much earlier in process –when the consent is issued and when the inspection takes place.

“Southland District Council uses the LBP Register when processing a building consent application to verify that an LBP has been engaged for any RBW,” said Building Solutions Manager Julie Conradi.

“Council inspection tools include the ability to check these names against the register while on-site undertaking an inspection.”

Wellington City Council’s Manager Building Compliance, Ricky Kernohan, said its inspectors use the LBP registry to check the status of LBPs’ licences. 

“LBPs must provide their licence card during inspection visits if they are doing a project that is RBW,” he said. “If they don’t provide this, or the licence is not current, the inspection is failed.”

Kernohan added that: “For the application for Code Compliance Certificate, Records of Work must be provided from the LBPs that conducted the RBW. If this is not provided or the licence was not current, a complaint to the LBP Board would be made.”

Connor added that the health and reputation of the LBP scheme relies on misdemeanours being swiftly punished.

“By being licensed, LBPs are able to promote their professional skills and behaviour in the building industry and show the public and potential clients that they meet a minimum standard of competency in their licensed area,” said Connor.

“MBIE will not hesitate to prosecute individuals that breach the Act, and practitioners seeking to carry out RBW should do their due diligence and make sure they are properly licensed before commencing the work.”

He urged anyone engaging a builder to look them up on the LBP Public Register, which lists the names of all current LBPs. The Register can provide certainly to consumers, who are unsure
if they are hiring the right people to carry out or supervise RBW.

Additional investigations

The case follows that of Matthew Biddle, who had his Design Class 1 licence cancelled following a complaint by MBIE shortly after it was re-issued in March 2023.

Like the case of Dodd, MBIE complained because Biddle submitted a Certificate of Work for RBW using the name and contact details of another LBP to hide
his own suspension.

Biddle’s overall case is complex. In December 2018, his licence was cancelled for 18 months after a complaint was brought against him in June 2017. In 2021, he submitted an LBP application, which was declined in 2022 before being granted after a review in March 2023.

Following the March 2023 review, in which he was granted a licence, a complaint was brought by MBIE and his licence was cancelled for a second time.