Negligent builder prosecuted for overcharging client $100,000
A Christchurch Licensed Building Practitioner (LBP) has had his licence cancelled for two years for work negligence and
incompetence, which saw a client overcharged by $100,000.
The Building Practitioners Board says Ronald Carmichael’s quote for a build was incorrect, pushing costs $100,000 above
the contract price. The Board found he was negligent in failing to correctly read and interpret the plans, and to price
the project accurately.
The homeowner stated that she had not received a record of work from Mr Carmichael and that he had refused to provide
one. The Territorial Authority also didn’t receive a copy, despite Mr Carmichael’s claims.
The Board found Mr Carmichael also failed to disclose and sign a contract between himself and the client, building
variations were not in accordance with the Building Act, and he took a cavalier approach to pricing.
He also failed to keep the homeowner informed and tended to treat her assumed ability to pay as an open cheque book.
“Understanding your regulatory and contractual obligations is important, and has been highlighted by this complaint.
Ensuring that there is a written contract and the required documents are provided before starting building work is
required by law,” says Paul Hobbs, Registrar, Building Practitioner Licensing.
“It helps to protect both LBPs and clients, and can make everyone’s life a lot easier down the line if a dispute were to
arise.
“This is a reminder to LBPs that being honest on your licence application and in your business decisions is important –
not only for your reputation and that of your business, but also to maintain your license,” he says.
NZS 3902 is a standard building contract LBPs can use for clients and home owners who engage them to build their house,
undertake simple building work or alterations. MBIE has more information on this process and has sponsored NZS3902 on
the NZ Standards website so that it can be used free of charge.
A guide to making a complaint about an LBP is available on the LBP website.
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