[2025] WASAT 52
General information, not legal advice.
State Administrative Tribunal (WA)
2025-06-09
Original judgment source is linked above.
(1) Did the respondent carry out a regulated building service in relation to all or any of the complaint items?
(2) Did the applicants take early possession of the site and if so, what impact if any does this have on determining whether the works are proper or proficient or faulty or unsatisfactory?
(3) If the answer to (1) is in the affirmative, has the respondent failed to carry out the building work the subject of the complaint items in a proper and proficient manner or is the work faulty or unsatisfactory?
(4) If the answer to (1) and (3) is in the affirmative, what is the appropriate form of the BRO (if any) in respect of each complaint item?
(a) remedy the building service as specified in the order;
(b) pay to an aggrieved person such costs of remedying the building service as the Tribunal considers reasonable and specifies in the order; and
(c) pay to an aggrieved person a sum of money specified in the order to compensate the aggrieved person for the failure to carry out the building service in a proper and proficient manner or for faulty or unsatisfactory building work.
cost plus contract means a contract under which a builder is entitled to recover an amount excluding prime cost items and provisional sums that is not determined at the time when the contract is entered into, being an amount that includes the actual cost to be incurred in -
(a) acquiring materials; and
(b) performing work,
specified in the contract, together with an additional amount that comprises either -
(c) a sum calculated as a percentage of that cost; or
(d) a specified sum,
(a) Forthwith upon the execution hereof and until practical completion the Builder shall be entitled to exclusive possession of the Works for the purpose of performance of this Contract and the Owner shall do all that is necessary to confer the same upon the Builder PROVIDED THAT the Owner or his duly appointed representative approved by the Builder shall be entitled to access for the purposes of inspection and viewing the progress of the Works but only at such reasonable times and in such manner as shall not interfere or prevent the Builder from carrying out the Works. After practical completion the Builder shall be entitled to reasonable access to the Site for the purpose of completing his obligations hereunder.
(a) The Builder shall be entitled to make claims for progress payments for the Works by notice in writing to the Owner (herein after referred to as "Progress Claims" at intervals either:
(i) the number of days specified in Item 7 of the Schedule commencing from the date of commencement of the Works; or
(ii) the value of the Progress Claim exceeding the amount specified in Item 7 of the Schedule.
(b) Such Progress Claims are subject to the following conditions:
(i) the Progress Claim shall identify all Costs incurred by the Builder up to and including the date of that progress claim together with the Builder's fee as specified in Item 5 of the Schedule;
(ii) payments shall be payable by the Owner within FIVE (5) days of receipt of any Progress Claim;
(iii) if the Owner shall not within FIVE (5) days of receipt of any Progress Claim notify the Builder of their disagreement with any of the items therein specifying full details of the Owner's disagreement the Owner shall be deemed to have accepted and approved of that Progress Claim as trust and correct;
(iv) if any dispute arises as to any item in the Progress Claim the Owner shall pay to the Builder the undisputed portion of that Progress Claim within the period specified in sub-clause 10(b) and the balance shall if not agreed and paid by the date of the next Progress Claim be resolved in accordance with Clause 18; and
(v) if any dispute arises as to any item in a Progress Claim which dispute remains unresolved at the date of the next Progress Claim the Builder may suspend the Works until the dispute is resolved or for any shorter period he may decide without prejudice to either party's rights in accordance with this Contract.
(a) Practical completion of the Works shall be deemed to have occurred when the same are structurally complete and reasonably fit for habitation and notwithstanding any unfinished work of a minor nature which does not unduly interfere with the free and uninterrupted use of the premises by the Owner.
(b) The Builder shall notify the Owner when the Builder considers that practical completion has occurred and within FIVE (5) days the Owner and the Builder or his representative shall meet at the Works to carry out a pre-handover inspection. If said meeting does not occur the Contract shall be referred to arbitration pursuant to Clause 18 hereof.
(c) During the pre-handover inspection the parties shall agree to a list of items which require completion or rectification. If the parties do not agree the Contract shall be referred to arbitration pursuant to Clause 18 hereof.
(d) Subject to Clause 13(e) the final payment shall be due within FIVE (5) days after practical completion and upon payment thereof the Builder shall hand the keys of the Works to the Owner or to such persons as the Owner may direct and on acceptance of the keys the Owner shall be deemed to have entered into possession of the Works and to have acknowledged that they have been completed by the Builder in accordance with this Contract and the Builder shall thereupon be relieved and discharged from all responsibilities under this Contract other than his obligations pursuant to Clause 14.
(e) Subject to Clause 13(g), if the Owner shall take possession of the Site, permit work outside this Contract or deliver goods or chattels to Site without prior written consent of the Builder, before practical completion or before the payment of all monies due and payable hereunder (whichever is the earlier), such action shall constitute an absolute waiver, release and discharge to the Builder from the Owner of any and every claim which the Owner had or might have against the Builder hereunder and the Builder shall thereupon be discharged, released and relieved absolutely from all of his obligations and responsibilities under this Contract (other than his obligations pursuant to Clause 14 - Defects Liability Period) and all monies payable under this Contract shall become immediately due and payable together with any interest thereon for late payment at the rate specified in Item 8 of the Schedule calculated from the date of the Owner taking such action.
(f) The Works shall be at the risk of the Owner from the date the Owner takes or is entitled to take possession.
(g) Possession of part of the works may be granted by the Builder in writing without prejudice to either party's rights under this Contract.
(a) If within the time specified in Item 10(a) of the Schedule calculated from the date on which practical completion was reached therein after referred to as "the defects liability period") defects or other faults in the Works which arise out of defective or improper materials or workmanship appear other than those defects and faults which may occur due to normal shrinkage and settlement and are notified in writing to the Builder they shall be rectified by the Builder.
(b) If the Owner does not notify the Builder in writing of any such defects or faults within TEN (10) days of the expiration of the defects liability period, the Builder shall be discharged and relieved from any further obligations and responsibilities under this Contract.
(c) The Builder shall at his own costs carrying out the rectification of defects within the time stated in Item 10(b) of the schedule hereto. If the Builder fails to rectify the defects or faults within this period the Owner may recover from the Builder the costs of making good the same.
(d) The Builder shall not be liable to remedy any damage or rectify any defects to the Works arising from any work carried out on the Site by the Owner or its servants and agents at any time.
(1) The Owner will pay the Builder five progressive payments of $11000 including GST after consequently: 1. Concrete finished; 2. Brickwork finished; 3. Roof cover done; 4. Internal fitout; 5. Completion.
(2) The Owner will agree to pay all Quotation (invoices) before Commencement of the job into the Builder's account.
(3) The Builder agrees to negotiate each Part of Contract rate with Owner then go ahead with it.
(4) After finishing each Part of Contract, the Owner to inspect the job and if Owner happy and satisfied, then Builder shall Proceed to the next stage of building.
(5) Items as below to be completed by Owner: Tiling except waterproofing - Painting - Landscaping.
After finishing each part of the contract, the owner to inspect the job and if owner all happy and satisfied then builder shall proceed to the next stage of building.
It is a fundamental principle that the rights granted and obligations imposed under legislation cannot privately be agreed not to apply. Relevant to this Act, a registered building service provider cannot opt out of obligations imposed and a person cannot agree not to exercise his or her rights to make a complaint at some future point when a defect may arise. The Act imposes obligations on registered building service providers and grants rights to persons in relation to a regulated building service to make a complaint alleging that such work has not been carried out in a proper and proficient manner or is faulty and unsatisfactory. Parties cannot enter into a private arrangement to operate outside of the Act where the building service being provided comes within the definition of a regulated building service because that building service is regulated by the Act.
In my view, the purpose of the BSCRA Act as consumer legislation, in relation to complaints about disputes which arise under home building work contracts, is to provide a system and process for resolving those disputes (Original emphasis).
And then from there he said, you know, 'if it takes longer time, you guys are living at the front, we will manage. You know we will basically, you know, work together'.
Dear Sara
Hope you are well,
I contacted you via text message previously before this email to arrange a suitable time to discuss any enquiries or issues you may find with the building. I have yet to receive a response.
With the completion of the building in close proximity if needed we can hire a private building inspector to go through the project in detail and rectify any faults, however, the current progress of the building is reasonable.
In relation to the building site, I was going to meet you to remind you as per the contract agreement I am the only person who can deal with the contractors on site. As we have spoken very often so far in all cases of contractors hired for this project we have agreed and you were satisfied after doing background checks for them to work on the project. I would appreciate you allow me to deal with the contracts as I am the builder. I am worried to tell you the interference in many cases of your husband with my contractors has been inconvenience, also dealing in cash with them as you know all payments have to go through builders bank account to pay for the invoices of the contractors this is a serious offence to my building ethics and company and can cause serious consequences for the contractors and confusion to the progress of the building as things have to be documented legally. Also, he cannot contact any suppliers or contractors on behalf of my company without my knowledge as he is free to do so on his behalf however, I am willing to arrange a meeting to resolve any issues at hand.
Feel free to contact me to organise a meeting as soon as possible as we don't want any delays to this project.
Kind regards
Dear George,
I hope email finds you well.
It has come to our attention, there are several issues with our build in Wembley Downs, we have verbally spoke to you about some of them in the past however your excuses does not make sense and it is getting more hectic and complicated as build goes further, we have heard numbers of complaints from some of the trades worked at our site in relation to faulty and poor workmanship. Also we have realized some areas are not matching the approved plan from local city council.
We would urge you to arrange a meeting so we could discuss our queries and hopefully finding a solution.
Looking forward hearing from you.
Kind regards
Sara Beladinejad
Issue 1 - Did the Respondent carry out the work?
Evidence of witnesses as to who carried out the building works
Witness, Moschilla: He would call and say his name was George. The emails I 've got, he started off as Orlando Rad. Then he became George Orlando. Then he became George UCPM.... I knew him as George from - I thought he was the builder. And it wasn 't until we had to confirm flyscreen installation that this George, the builder George, said you can't be dealing with this customer, he is the owner, all communication is to go via the builder not the owner. So the emails that I have got are from Orlando as, I 'm going to say, impersonating George.
Tuesday 30th July 2024
To: State Administrative Tribunal
Subject: 246 Weaponess Road, Wembley Downs
I, David Byl trading as Jahdav had quoted UCPM Pty Ltd (George Forrester) for the amount of $53,559.00 to supply and install stone tops and cabinets for the kitchen, alfresco, ensuite, bathroom and laundry as well as glass splash backs and walk in robes.
The client, Pooya Rad (also known as Orlando), gave me the interpretation that he (Orlando) was affiliated with UCPM. When I received the deposit directly from Orlando, I thought that the job was going ahead not knowing that Orlando was a client and not an authorised representative of UCPM Pty Ltd.
I went ahead and installed the cabinets and the stone tops for the kitchen, alfresco, bathrooms and laundry. While we were completing the bathroom top, we realised the basin was out of centre. To replace the top would cause a delay with the tilers. Orlando was on site and we discussed the issue. Orlando agreed to accept it as is. Orlando then got the tiler in to complete the tiling.
Orlando was happy with the quality and finish of all the work that I completed, except for a couple of minor scratches in the kitchen cabinet doors. This can be verified by George Forrester or Jeremy Byl (Southern Cross Kitchens).
I was planning to return to site and fix these minor scratches and install 2 x European drawer runner mechanisms (they were on back order at the time), however Orlando refused to allow me or my cabinet maker (Jeremy Byl from Southern Cross Kitchens) to return to site. These were the only things we needed to do to fully complete the job. Everything else had been done from our end.
I have seen the building inspection report, and I would like to clarify that when I left the job there were no chips in the stone tops, and there were no gouges out of the cabinetsdoors, drawers and panels. The cabinet maker who custom made and installed the cabinets (Jeremy Byl, Southern Cross Kitchens) can verify this also.
There is approx. $30,000 outstanding on this job as Orlando is refusing to pay for the work completed. He has also barred access to the site so that Jeremy and I are unable to finish those last minor items on this job.
I started legal proceedings against Pooya Rad (Orlando) with Warnar Spyker from Spyker Legal. However I ended up giving up, as the cost of chasing Orlando down was too much for me financially and mentally[.]
To whom it may concern,
I Gary Hill Licensed plumber and gas fitter for 54 years, declare that towards the end of the project, the owner took over the builders job, frequently calling me and interfering with and distracting my work.
I required a partial payment towards the final invoice but he refused to do so. Consequently, I refused to finalize the job as I was concerned about not being paid in full. So far, except for the final payment have been made by UCPM Pty Ltd and I have never had any issues with them. Since I do not know the owner, l requested to secure my pay[.]
Documentary evidence as to who carried out the building works
...
When I started the job after a few days george came checked the job, and I was paid a progressive payment through ucmp
After that Orlando was on site every day checking in on me he told me that he and George where partners
I finished job then Orlando checked job then paid balance[.]
Carl chipi just messaged me and he is coming to pick up the cash at 8.30am.
He is going to invoice $8800 including GST for the balance.
Are you sure we don't need to check his work before I pay him the cash?
Cause I'm not also sure about that pier and facis but according to the picture I sent you yesterday he has modified it as per plan.
Hi George,
Hope you are doing well.
Please see description for this job below.
Job - 246 Weaponess Road, Wembley Downs
Orlando here, I'm George Forrester's business partner. You recently did a job for us in Wembley Downs. I met you when you came to measure the roof few weeks ago. Could you please give me a quick call when free.
Cheers
Orlando
Hi Greg,
Please call me when you free so we could arrange sometime to sort out your invoices in relation to the job you did for us in Wembley Downs.
246 Weaponess Road
Wembley Downs
Thanks
Orlando
Hi Greg
Hope all is well
How are the things with Orlando's place going mate
Are you done with it all
Pls let me know if there are any issues
Kind regards
George
George, please let me know if you require further information.
Thanks
Regards,
Greg Bussell
Director
GJB Roofing Pty Ltd
Hi Greg
This is George again
If we offer you a good rate and half cash and half on the book
Are you then going to do the job?
Cheers
HI George
Sorry I haven't been able to get a quote to you yet. I will be in the office later today and will get a quote to you.
cheers
30 JULY 2024
To State Administrative Tribunal
To whom it may concern,
Subject: 246 Weaponess rd, Wembley Downs
We can confirm that MV Ceilings completed the ceiling works at this property and was paid in full by the owner of the property.
UCPM pty ltd had introduced MV Ceilings to the owner of the property and works were carried out as requested.
Thank you.
Your sincerely
Michael Ventrice
To: state administrative tribunal
Subject: 246 Weaponess Rd, Wembley Downs
I, Kiro Korunoski, declare that I have been a door fixer for almost 20 years and have previously completed work for UCPM Pty Ltd (George Forrester).
Mr. Orlando knows me through UCPM and called me to do his job. I completed all the door and skirting work. Mr Orlando was happy with my work and paid me in full.
Kind regards,
Kiro Korunoski
(1) Invoice dated 26 January 2023 for 'Progressive payment on the completion of the roof'.
(2) Invoice dated 10 April 2023 for 'Progressive payment for the internal fit out'.
(3) Invoice dated 10 April 2023 for 'Progressive payment on the completion of the house'.
(a) An invoice from 'Chill Plumbing and Gas in the amount of $5,713.29 directed to UCPM Pty Ltd.[35]
(c) An invoice dated 10 March 2023 which was addressed to Mr Forrester from Jahdav Design Woodcrafts (David Byl) and details an outstanding amount of $28,746. This invoice indicates that a $1,000 'deposit' was paid on 18 October 2022, a $17,559 deposit was paid on 16 January 2023 and a 'progress payment' of $5,000 was paid on 6 March 2023.[38]
(d) Two brick work invoices - an invoice for the amount of $11,532.44 to UCPM from Midland Brick dated 23 September 2022 and an invoice that UCPM issued to itself in the amount of $33,406.46 on 15 December 2022.
(e) An invoice to the respondent from DJB roofing in the amount of $22,159.19 on 28 September 2022 and a further invoice on 23 December 2022 in the amount of $572.
(f) An invoice from Capitol Constructions to the respondent for roof carpentry dated 4 December 2022 in the amount of $8,800; and
(g) An invoice from Euro Electrical Services to the respondent for $13,893 dated 10 September 2022.
(a) the works completed by the cabinet maker Mr David Byl (complaint items 8, 19, 20, 21, 22) with the exception of complaint item 8.
(b) the works completed by the plumber, Gary Hill (complaint items 33, 37 and 53)
(c) the items completed by the roof plumber Mr Greg Bessell (complaint items 26, 27, 33, 35, 37, 46, 50 and 53); and
(d) the items completed by the roof carpenter Mr Carl Vilardi (complaint items 38, 39, 40, 42, 43 and 44) (this was in fact accepted by the respondent).
Issue 2: Principles concerning when work is unfinished/incomplete instead of faulty/unsatisfactory
(a) the behaviour of the applicants and the respondent during the hearing indicates to the Tribunal that their relationship has now completely broken down and there is no reasonable prospect that they will be able to communicate to allow the respondent to complete the work or organise someone else to do so;
(b) this is a very long-standing dispute with a long history of legal proceedings, including in the Magistrate's court and Supreme Court and understandably both parties are now in a visible state of frustration and agitation about the proceedings, which is evident in their behaviour towards each other; and
(c) the Tribunal therefore has no confidence that a work order will bring this matter to a conclusion.
Evidence of the witnesses in relation to remedial works
To strip out tiles, Gyprock ceiling, cornices, downlights, exhaust fan. To build up new wall creating a niche according house plan, waterproofing, tiling, fixing ceiling and cornices, reinstallation of downlights and exhaust fan.
Items 9 - External west wall, 10 - Internal garage wall, 12 - External southern wall, 13 - External eastern wall, 14 - External northern wall
(1) a chipped section in the external alfresco kitchen stone benchtop - the inspector says that it appears that the cut out for the wok burner has been overcut and a discernible chipped section is evident to the front left-side corner in front of the stainless-steel hob of the wok burner; and
(2) all 90-degree internal corners at the junction of the waterfall ends, and the underside of the stone benchtop in the kitchen are defective - the inspector stated that when viewed from a normal viewing distance of 1.5 metres, all internal corners are noted above are not 90-degreees, appear bowed and look untidy.
To strip out kitchen benchtop and outdoor kitchen benchtop, plumbing, electrical, tiling around it. To supply and install new kitchen benchtop and new outdoor kitchen benchtop plus all plumbing, tiling and electrical work.
Items 26 and 27 - Façade and 46 - Portico and 50 - Alfresco
The respondent is to remedy the fall of the Portico fascia and gutter, so that it falls away from the feature brick pier, and water is directed to the closest downpipe in accordance with 'NCC 2019 Volume 2; Part 3.5 Roof and Wall Cladding; Part 3.5.3 Gutters and Downpipe.
We have - the - the reason why we - we fit these vacuum breakers is to stop the contaminated water coming back through the mains if the mains gets turned off, but now the water metres are fitted with a blackflow prevention device that's actually built in since 2020, so we haven't actually had to fit them.
To strip out roofsheets and partially remove external cement float. To tie down hoop iron straps into brickwork and timber framework, re render external wall and re install roof sheets.
Install 1 missing hoop iron strap by using J bolt (as is).
To strip out white set, skirting boards, cornices, Gyprock ceilings, A/C vent, electrical sockets. To re render hallway walls and apply white set, reinstall Gyprock ceilings, cornices, A/C vent and electrical sockets and repaint the walls.
Prepare and etch wall and replaster the wall and repaint (if required new cornice and skirting will be installed).
I certify that the preceding paragraph(s) comprise the reasons for decision of the State Administrative Tribunal.
[23] Mr Forrester confirmed that he did not serve the witnesses with conduct money (ts 140, 10 February 2025) and therefore in accordance with the Tribunal's Practice Direction no steps could be taken to compel their attendance.
[48] Gemmill Homes Pty Ltd v Sanders [2018] WASC 179 at [106] per Smith J.
[49] Gemmill Homes Pty Ltd v Sanders [2018] WASC 179 at [104] per Smith J.
[50] Gemmill Homes Pty Ltd v Sanders [2018] WASC 179 at [124] and [134] per Smith J.
[51] Gemmill Homes Pty Ltd v Sanders [2018] WASC 179 at [147] per Smith J.
Deshmukh and Distinctive Building Services Pty Ltd [2024] WASAT 15
Gemmill Homes Pty Ltd v Sanders [2018] WASC 179
Jetpoint Nominees Pty Ltd and Lee [2021] WASAT 10
Lee and Jetpoint Nominees Pty Ltd [2020] WASAT 62
Shami and Teo [2017] WASAT 73
Thorp and D2R Pty Ltd [2023] WASAT 64