MR_Favour for friends turns into $5000 fine for unregistered

Media Release
1 December 2016
Unregistered builder fined $5,000 over kitchen
renovation favour for friends
A request from friends to provide a quote on a kitchen renovation as a favour has resulted in an
unregistered person being convicted and fined $5,000 in the Broadmeadows Magistrates Court.
Eduardo Romero, who operates Cabtek Architectural Joinery Pty Ltd in Keilor, does commercial cabinetry
work on a sub-contract basis and is not required to be registered for this work. In 32 years as a cabinet
maker and joiner he has never been registered as a domestic builder. He pleaded guilty to two counts of
carrying out domestic building work while unregistered, and three other charges.
Magistrate Keogh told Mr Romero that but for his guilty plea the court would have imposed a fine of
$10,000. In addition to the $5,000 fine, Mr Romero was ordered to pay costs of $488.11.
On 23 July 2014, at the request of friends, Mr Romero provided a quote to the owner of a house in
Meadow Heights for a range of work including removal of the existing kitchen and installation of a new
kitchen.
The quote of $20,790 was accepted, with the owner requesting that the contract state that a 30 per cent
deposit be paid before work started, although Mr Romero had requested five to 10 per cent deposit. The
contract also noted that all work would be performed by experienced and licensed tradespeople.
Following payment on 29 July 2014 of the deposit of $6,239, an amount higher than that allowable under
the Domestic Building Contracts Act 1995, progress payments of $4,365 and $5,000 were made on 28
August 2014 and 2 September 2014 respectively. After payment of the $5,000, the owner told Mr Romero
that no more money would be paid until the job was completed.
In February 2015, the owner engaged a building inspection company to inspect and report on the
remedial action required for the work undertaken by Cabtek Architectural Joinery Pty Ltd. The report
showed that the estimated cost of rectification work and remaining work to complete the job was
between $4,530 and $6,280. Mr Romero disputed the contents of the report.
Alleging the work was incomplete and/or defective, the owner applied to VCAT seeking compensation.
That matter was settled, although Mr Romero denied liability. Under the terms of settlement, among
other things, Mr Romero and/or his company agreed to pay an amount of $10,415.28 to the owner.
Following a complaint by the owner, the Victorian Building Authority (VBA) investigated and charged Mr
Romero with two counts of not being registered, failing to hold the insurance coverage required and
receiving a deposit in excess of what is allowable under the Domestic Building Contracts Act 1995, and
entering a contract that did not comply with that Act.
The Chief Executive Officer of the VBA, Prue Digby, said it was important for consumers to check that the
builder they engage is registered to do the work for which they are being engaged and that the contract
meets the requirements of the Domestic Building Contracts Act.
For further information and to check whether your builder is appropriately registered, visit
www.vba.vic.gov.au
ENDS
Media enquiries Craig Little, VBA Communications, 03 9618 9316, [email protected]