The conviction of two Illawarra builders for numerous breaches of the home building laws is a timely reminder for consumers to ensure contractors are properly insured.

Fair Trading Deputy Commissioner Steve Griffin today said Michael Andrew Gales and Marcell John Khouri, directors of Designer Relocatable Homes Pty Ltd, now in liquidation, have been ordered to pay $4,900 and $3,976 respectively in fines and costs for failing to insure work and demanding payment for uninsured work.

Mr Griffin said both builders pleaded guilty at separate hearings before Wollongong Local Court.

“NSW Fair Trading investigators became aware of Mr Gales and Mr Khouri’s illegal activities after receiving a number of complaints from consumers,” he said.

“Ultimately, their defective and incomplete work led to their dissatisfied customers contacting Fair Trading for assistance.”

Mr Griffin said during 2006 and 2007, Designer Relocatable Homes Pty Ltd constructed and installed relocatable homes in Port Kembla and Dapto.

“Each residential building contract was close to $100,000, however Mr Gales and Mr Khouri failed to provide home warranty insurance to their customers as required by law,” he said.

“Mr Gales and Mr Khouri chose to ignore their obligations and this decision was a breach of the laws governing the NSW home building industry.

“Home warranty insurance is an integral part of consumer protection and must be obtained by the home building contractor when the contract price is more than $12,000, before the commencement of work and before demanding or receiving any payment.”

Mr Griffin said the laws exist for the protection of consumers and traders alike.

“Any person who carries out residential building work in NSW worth more than $1,000 in labour and materials must have a licence,” he said. “For specialist work, such as plumbing, electrical, air conditioning and refrigeration there is no threshold for labour and materials.

“You can avoid a lot of financial and emotional pain by carrying out a simple licence check online or by calling 13 32 20.”

Traders who breach the law can receive penalties of up to $22,000 for an individual or $110,000 for a partnership or corporation.

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