Watkins, director of Watkins Building Group Pty Ltd and Watkins Building and Carpentry Pty Ltd, was issued a show-cause notice after demanding and receiving money from consumers when he had no legal right to do so.
The BPC found that Watkins failed to obtain the required domestic building insurance (DBI) before accepting payments. One homeowner paid more than $400,000 for a single-storey home and garage in Kilmore. When Watkins' company went into external administration, the funds were not recoverable because no DBI policy was in place.
All builders are required to take out DBI on behalf of homeowners for domestic building work valued over $16,000. DBI protects homeowners if a builder dies, disappears or becomes insolvent.
Watkins also failed to lodge a building permit with Mitchell Shire Council for the Kilmore property, making the excavation work illegal. Both companies are now in external administration.
He admitted he failed to keep adequate financial records for either company, and both were found to be trading while insolvent.
Following the investigation, the BPC:
- Cancelled Watkins' registration
- Disqualified him from being registered in any category or class of building practitioner for three years
- Disqualified him from being the nominee director of any registered building company for three years
- Ordered him to complete multiple training courses
Watkins has the right to appeal the decision to VCAT.
BPC Commissioner and Chief Executive Officer Anna Cronin said the outcome reflects the Commission's commitment to removing unprofessional and dishonest operators from the industry.
"The BPC has zero tolerance for rogue practitioners and we're doing everything we can to remove them from the industry."
"Consumers should always check their builder is registered and has proof of a valid domestic building insurance policy before handing over money."
"We're working hard every day to help restore confidence, protect consumers and support practitioners to do the right thing."
