He pleaded guilty and was fined $10,000 at the Ringwood Magistrates’ Court on September 24 after being in breach of Section 136(2) of the Building Act 1993.
The man entered into a major domestic building contract with the homeowners in 2015 after their house was destroyed by fire.
An agreement included the purchase and relocation of a dwelling from regional NSW to the Tongala property.
Work was carried out between May 2016 and October 2017 by a registered builder, who was sub-contracted by the man.
The work was defective and to such a low standard that it left the dwelling uninhabitable.
Although the man did not carry out the defective building work himself, it was due to the fact that he was the builder who managed and arranged the carrying out of the building work by subcontracting the builder, that the obligation to take out insurance rested with him.
The owners became concerned, as they had paid $162,650 under the contract and received a further invoice for $20,240 on June 13, 2017.
At this point building work slowed and defects became apparent.
An inspection report was commissioned by the owners, which provides a costing estimate for rectification and completion at $157,820.
The owners commenced proceedings at the Victorian Civil and Administrative Tribunal against both the man and the sub-contracted builder and a settlement was reached.
VBA chief executive Sue Eddy said the regulator took its role to maintain the integrity of the building industry extremely seriously.
“We will always use the powers available to us to protect consumers,” Ms Eddy said.
“Anyone carrying out building work needs to know their legal obligations regarding building contracts.
“These laws are designed to protect property owners and maintain proper standards in the building industry.”
More local news
Thirteen cars damaged in Echuca crime spree
Echuca-Moama New Year's celebration cancelled
Coolabah Turf claims national honour
23°C