Consequences of Non-Compliance in the Trade Industry

In a competitive market, your reputation in the building industry is crucial. It has the power to determine your current and future success. Being caught out for not complying with the law can have an irreversible effect on a tradesperson’s finances and standing in the community.

Consumer and Business Services (CBS) takes action where noncompliance is detected, such as builders and tradies not being licensed, working outside the scope of their licence, or performing substandard work. The action taken and resulting consequences can vary based on the facts of each matter and the extent of damage caused. CBS has taken court action in relation to several unlicensed tradies in recent months.

A Burnside man who operated without a licence and provided shoddy work was fined $105,000. His victims were left with either inadequate or irreparable work, or they had paid for services that the tradie did not supply.

In one case, a consumer paid more than $32,000 to the tradie to build a pool, only to find that the fencing wasn’t straight, the filter pump wasn’t secured to the ground and the pool itself had a crack in the bottom.

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The damage was so bad the consumer was told it would be cheaper to install a new pool than to repair the crack. In addition to the court ordered penalties, CBS issued a media release bringing this man to the broader public’s attention.

A tradie from Royal Park received a five-month suspended prison term, was fined $3,350 and ordered to repay consumers $8,000. He was unlicensed, performed defective and dangerous building work, provided unsafe car trailers to unsuspecting consumers and stole $10,000 from a charity.

In another matter, a tradie from Torrensville provided a written assurance to CBS that he will not contract for building work without a licence. This assurance is publicly available on the assurances register on the CBS website, along with the names of other traders who have provided written assurances that they will not engage in certain unlawful conduct.

By publicising the names and details of builders and tradespeople who have gone before the court, provided a written assurance to CBS, or whose conduct is so poor that a public warning is necessary to protect consumers, this means that consumers are alerted to which tradies they should not engage. It also sends a clear message to the industry that unlicensed activity and other unlawful conduct is not acceptable.

CBS urges all workers in the building industry to be vigilant and professional with how they conduct themselves in their trade. It is clear that consumers will not tolerate tradies who perform substandard work, and that non-compliance can impact a tradie’s reputation and result in court ordered fines and compensation payments to affected clients.

CBS will continue to investigate and take action against South Australian traders who fail to comply with licensing and consumer protection requirements. CBS welcomes reports from consumers and industry of unlicensed activity. You can report online at www. cbs.sa.gov.au or by telephone on 131 882.