A WANGARA cabinetmaker has been penalised almost $4000 for taking a deposit six times higher than the maximum allowed.
At Joondalup Magistrates Court earlier this month, Michael Clinton Cockburn pleaded guilty to a breach of WA’s home building contract legislation following a prosecution by Building and Energy.
The court was told that in December 2017, Mr Cockburn entered into a contract to renovate the kitchen of a Butler house for $19,000.
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READ NOWIn an email to the home owner, he confirmed the quote and stated that a 40 per cent deposit, or $7600, was required prior to starting the work.
The home owner accepted the quote and paid the deposit two days later.
Mr Cockburn was fined $3300 and ordered to pay more than $500 in costs.
Building and Energy acting executive director Saj Abdoolakhan said the Home Building Contracts Act 1991 allowed for a deposit of no more than 6.5 per cent of the total amount before work started.
“This legislation applies to contracts for home building work or associated work valued between $7500 and $500,000,” he said.
“In these circumstances, it is not permissible to enter into a contract that provides an entitlement to demand or receive a deposit of more than 6.5 per cent of the contract price prior to the work commencing.
“Breaches of these rules can be reported to Building and Energy on 1300 489 099.”
Visit dmirs.wa.gov.au for more information.