Construction Insurance Online :: News
SHARE

Share this news item!

Western Australian Builder Penalised for Inaccurate Completion Notices

The Impact of Premature Documentation on Home Indemnity Insurance

Western Australian Builder Penalised for Inaccurate Completion Notices?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

In a recent development highlighting the critical importance of accurate documentation in the construction industry, a Western Australian residential builder has been fined for submitting premature completion notices.
This action has raised significant concerns regarding the integrity of home indemnity insurance (HII) processes and the responsibilities of builders in ensuring compliance with regulatory standards.

The Building Services Board imposed a $5,000 fine on Sovereign Building Company Pty Ltd, based in Balcatta, after determining that the contractor engaged in misleading conduct under Western Australia's builder registration regime. An investigation by the Department of Local Government, Sport and Cultural Industries' Building and Energy division revealed that between 2021 and 2024, Sovereign submitted 25 notices of completion to QBE Insurance for building work at six development sites. These notices were lodged despite the projects not having reached practical completion at the time.

QBE Insurance requires completion notices as evidence that each site has achieved practical completion before extending additional HII capacity to builders for further projects. By submitting these forms prematurely, Sovereign's notifications did not accurately reflect the actual stage of construction. Consequently, QBE issued HII policies based on information that was subsequently found to be inaccurate.

In determining the sanction, the board considered the company's cooperation during the investigation, its acknowledgment of the conduct, and the absence of prior disciplinary matters. However, the case underscores the broader implications of such practices within the construction industry.

Daniel Kearney, Executive Director of Building and Energy, emphasized that builders must only submit completion notices when works have genuinely reached practical completion. This ensures that insurers can accurately assess the home indemnity insurance facility available to the builder. Premature or inaccurate documentation can lead to misinformed decisions by insurers, potentially resulting in inadequate coverage and increased risk exposure.

This incident serves as a stark reminder for builders and construction companies about the importance of adhering to regulatory requirements and maintaining transparency in all documentation processes. Accurate reporting not only upholds the integrity of the construction industry but also ensures that homeowners are adequately protected under HII policies. Builders are encouraged to implement robust internal checks and balances to prevent similar occurrences and to foster trust with both regulatory bodies and clients.

Published:Sunday, 19th Apr 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

New Specialty Capacity Arrives for Australian Construction Risks
New Specialty Capacity Arrives for Australian Construction Risks
03 Nov 2026: Paige Estritori
Munich Re Specialty's formal entry into the Australian primary specialty insurance market on 2 November 2026 is a notable development for builders, contractors, developers and project owners watching capacity across construction, engineering and surety lines. The Sydney-based operation is initially focused on property, construction and engineering, mining and surety business, with a stated emphasis on commercial and mid-market clients. - read more
Safety Data Puts Construction Insurance Discipline Back in the Spotlight
Safety Data Puts Construction Insurance Discipline Back in the Spotlight
15 Sep 2026: Paige Estritori
The latest national work health and safety picture is another reminder that construction risk is not confined to the site fence. When injury, fatality and serious incident trends remain elevated, the consequences can flow directly into insurance outcomes for builders, subcontractors, developers and project managers. - read more
Falls From Height Are Back in Focus for Construction Risk
Falls From Height Are Back in Focus for Construction Risk
08 Sep 2026: Paige Estritori
Renewed regulatory and industry attention on falls from height is a timely warning for Australian builders, subcontractors and project managers. While falls are usually discussed as a work health and safety issue first, they also sit squarely inside the insurance conversation because a serious incident can trigger workers compensation claims, public liability exposure, contractual disputes, investigation costs and reputational damage. - read more
Why Slower Building Approvals Can Become an Insurance Issue
Why Slower Building Approvals Can Become an Insurance Issue
01 Sep 2026: Paige Estritori
Australia’s latest building approvals commentary has again highlighted a difficult reality for the construction sector: the national housing task is ambitious, but the project pipeline remains uneven. Industry groups have pointed to approvals volatility, planning delays and capacity constraints as continuing barriers to lifting housing supply at the pace governments want. - read more
Workers Compensation Costs Are Back on the Construction Risk Agenda
Workers Compensation Costs Are Back on the Construction Risk Agenda
25 Aug 2026: Paige Estritori
Workers compensation is again moving from a payroll administration issue to a strategic insurance concern for construction firms. Recent attention on state scheme performance, premium settings and claims pressure is a timely reminder that builders and contractors cannot treat statutory cover as separate from the rest of their risk programme. - read more


Professionals Insurance Articles

Factors That Influence Construction Business Insurance Costs in Australia
Factors That Influence Construction Business Insurance Costs in Australia
Construction business insurance costs can vary widely between builders, contractors and subcontractors. This guide explains the common factors insurers may consider when assessing premiums, including business activities, project values, cover limits, claims history and subcontractor use. - read more
Public Liability Insurance for Construction Businesses in Australia
Public Liability Insurance for Construction Businesses in Australia
Public liability insurance can help construction businesses manage third-party injury and property damage risks. Learn what it may cover, what is commonly excluded, and how certificates of currency work in Australia. - read more
NSW Construction Compliance Update: Professional Indemnity Insurance Requirements from 1 July 2026
NSW Construction Compliance Update: Professional Indemnity Insurance Requirements from 1 July 2026
The NSW construction industry is approaching a major compliance milestone. From 1 July 2026, a registered building practitioner in NSW must be indemnified under an insurance policy for work they carry out in that capacity. This change sits within the broader compliance framework established under the Design and Building Practitioners Act 2020 (NSW) and supporting regulation, which have progressively lifted accountability standards across building and construction work in the state. - read more
Income Protection Insurance for Construction Workers and Contractors
Income Protection Insurance for Construction Workers and Contractors
Construction work can involve physical risk, variable income and periods away from the tools. This guide explains how income protection insurance may relate to builders, subcontractors, sole traders and construction workers in Australia, and how it differs from workers compensation and business insurance. - read more
Staying Compliant: Understanding Insurance Obligations in the Construction Industry
Staying Compliant: Understanding Insurance Obligations in the Construction Industry
Insurance compliance is a cornerstone of operating successfully within the construction industry. It ensures that businesses adhere to legal standards while safeguarding their projects and employees. Ignoring these obligations can result in hefty fines and damage to a company’s reputation. Thus, staying compliant is not just a legal duty but a smart business strategy. - read more

Knowledgebase
Depreciation:
The reduction in the value of an asset over time, used in insurance to calculate the actual cash value of property.