A WA builder has admitted breaching home building contract laws after he started three jobs without mandatory insurance, leaving a property owner with more than $132,000 in costs.

Peter John Edmonds agreed to complete the renovation projects in 2020 and 2021, with one job valued at nearly $100,000, Mandurah Magistrates’ Court heard. He did not take out home indemnity insurance policies for the contracts before starting the work.  

The homeowner later lodged complaints about the work, resulting in the State Administrative Tribunal ordering Edmonds to pay more than $132,000.  

The court heard Edmonds had suffered a severe injury and was unable to finish the work. He eventually became bankrupt and could not pay the $132,000.

Magistrate Leanne Atkins fined Edmonds $2000 for his failure to hold the mandatory insurance, noting it would have covered the homeowner for their “significant financial loss”.

WA law requires builders to buy home indemnity insurance before starting work or accepting payments for residential construction jobs valued at more than $20,000. The policy covers up to $40,000 for lost deposits and $200,000 for defective or incomplete work if the builder dies, disappears, becomes insolvent or loses their builder registration on financial grounds.

State building commissioner Saj Abdoolakhan says the case provides a “stark reminder” of the need for home indemnity insurance.  

“If this insurance was in place as it should have been, the homeowner would have been protected from losses up to $200,000 following the builder’s bankruptcy,” he said.  

“As a registered building contractor at the time of the work, this builder was well aware of the [insurance] obligations. On this occasion, the court has decided to impose a fine of $2000, which is 20 per cent of the maximum penalty available.”