A Derrimut builder has been ordered to pay more than $160,000 in damages after moving to the Philippines midway through construction of a Maidstone property.
Gaudencio Espinosa, director of GE Builder Pty Ltd, appeared before the Victorian Civil and Administrative Tribunal on May 22 after two property owners sought damages for the termination of a contract to build two townhouses.
The tribunal heard Peng Cao and Saiyu Liu purchased land in Maidstone in October, 2014, with the intention of building two townhouses, one for each of them and their respective families.
They engaged GE Builder to build the properties and paid a 10 per cent deposit ($52,320.36) in December, 2014.
Works began in April, 2015, and by Christmas of that year a further $52,320.36 was paid. At that time, construction was at a mid-frame stage, with part of the timber and steel framing, including a fire-rated partition wall, for the lower level of the townhouses completed.
The work stopped at that point, with Mr Espinosa saying he had become stressed. He said that in an effort to improve his health, he moved himself and his family to the Philippines temporarily in February, 2016.
Mr Espinosa told the tribunal that at the time of moving he believed arrangements had been made for a separate building company to complete the work. But Mr Cao and Ms Liu said no such deal had been made.
They terminated the contract with Mr Espinosa on October 31, 2016, after failing to make contact with him overseas. At the time, an inspection of the dormant works found weather damage that would likely have required the works to be demolished and restarted.
Mr Espinosa returned to Australia in January, 2017. He did not dispute the evidence at VCAT.
Tribunal senior member Mark Farrelly ordered GE Builder to pay $164,245.13 damages for incomplete work and breach of contract.
“It is clear … that the builder abandoned the contract in February, 2016,” Mr Farrelly said. “The applicants’ termination of the contract was justified and they are entitled to damages.”
■ A Sunshine West man who posed as a builder to carry out a major home extension has been fined $5000.
The man was fined and convicted in the Sunshine Magistrates Court recently on charges including entering a major domestic building contract without being a registered builder and not being covered by insurance.
The court heard the man carried out a $70,000 extension on a Sunshine West home almost four years ago which involved demolishing a study and installing a skylight, shower, pantry, kitchen and bathrooms.
The property owner said the skylight and pipes in the bathroom leaked, showers were not sealed properly and flood lights were installed rather than security lights.
The home owner lodged a complaint with the Victorian Building Authority (VBA), which upon investigation led to the court conviction.
