Builder Fined For Misleading Insurance Certificate Coastal Design & Construction Pty Ltd

A Perth building contractor has been fined $5,000 after submitting a building permit application that included a home indemnity insurance (HII) certificate for a different property.

The Building Services Board found Thornlie-based Coastal Design & Construction Pty Ltd (BC103806) engaged in misleading conduct under WA's building registration laws when it provided a false HII certificate to the City of Stirling.

According to information presented to the Board, Coastal Design & Construction lodged the application in April 2024 for additions and alterations to a home in Inglewood. The City discovered the accompanying HII certificate had been issued to the company about five months earlier for a different address.

HII is compulsory for residential building work valued at more than $20,000. It protects owners against financial loss if a builder cannot complete or rectify building work because of death, disappearance, insolvency or loss of registration on financial grounds.

The Board noted Coastal Design & Construction's proactive steps after the incorrect certificate was identified, including obtaining a valid HII policy for the Inglewood site in June 2024. The City subsequently approved the building permit.

Building and Energy Executive Director Daniel Kearney said the requirement for builders to obtain a valid certificate of HII is a fundamental protection for consumers engaging with the building industry.

"This conduct undermines the protections provided by WA's home building contract laws and the overall integrity of the building approvals process," Mr Kearney said.

"Had the false certificate not been identified by the City of Striling, the permit may have been issued without valid insurance, putting the homeowners at risk of financial loss."

To confirm the validity of an HII certificate, homeowners can search QBE's Builders Warranty Insurance Certificate Register .