• Building work undertaken without the required permit, insurance or supervisor
• Five properties in Perth’s north-eastern suburbs
• Director fined and company now in liquidation

The former director of a now-defunct Perth building company has been ordered to pay $25,000 in fines and costs for unauthorised work and inadequate oversight of five building projects.

On 8 September 2023, the State Administrative Tribunal (SAT) found former registered building contractor Babylon Homes and Construction Pty Ltd (BC102939, expired), overseen by Mohammed Razaq, was the subject of disciplinary matters under WA’s builder registration laws.

Information presented to the SAT by Building and Energy showed home owners in Ballajura, Mirrabooka, Dianella and two Landsdale sites engaged Babylon for building and renovation projects valued between $33,000 and $250,000 in 2020 or 2021.

At all five properties, Babylon carried out work without the required building permits and without a nominated supervisor to oversee the projects. For four of the properties, the company also failed to obtain home indemnity insurance, which is compulsory for residential building work valued at more than $20,000.

The SAT found that Babylon’s failure to obtain building permits and to have a nominated supervisor and home indemnity insurance meant that the company had been negligent and incompetent in carrying out the building services and failed to ensure proper management and supervision. These are disciplinary matters under the Building Services (Registration) Act 2011.

Babylon entered liquidation in June 2022 and was not fined by the SAT. Mr Razaq became Babylon’s director after the company carried out the five projects, but the SAT found that he should be fined due to his direct involvement in the building services and as the key person responsible for the company’s management.

In her decision, SAT member Anita King noted Mr Razaq did not participate in the tribunal proceedings or provide any evidence, but he had previously admitted to the disciplinary allegations during a record of interview with Building and Energy.

“The tribunal has taken into consideration the seriousness of the allegations made and notes that Mohammed Razaq admitted the conduct,” Ms King stated.

“I surmise that the actions of Mohammed Razaq were either intended to mislead or were negligent in the carrying out or completion of the building work… The conduct complained of was a serious departure from the requisite standard expected of a competent builder and occurred over a significant period of time and over five sites.”

Building and Energy Acting Executive Director Peter Stewart said unauthorised and unsupervised building work was unacceptable.

“WA’s building approval and registration requirements are in place to ensure community safety through compliance with building standards,” Mr Stewart said.

“Likewise, operating without home indemnity insurance puts home owners at significant financial risk if the builder becomes insolvent.

“Building service providers who attempt to bypass the rules will be held to account.”

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Media contact: BEmedia@demirs.wa.gov.au