NT construction company handed record fine for professional misconduct

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A Darwin construction company has been found to have engaged in professional misconduct and hit with a record fine after admitting to invoicing clients for incomplete work over at least 15 years. 

The NT’s Building Practitioners Board of Inquiry has ordered Kassiou Constructions to pay a fine of $94,200, following an audit by the Director of Building Control into its conduct across five home builds in Greater Darwin between 2021 and 2023.

The company, owned by Louis and Ilias Kassiou, was referred to the board of inquiry in February by NT Director of Building Control, Mark Meldrum.

According to the decision of the board published earlier this month, the audit found that during four of the builds, Kassiou Constructions had invoiced clients for completion of the frame stage of construction when the required works had not yet been completed.

For two of the builds, the audit found, the frame stage was never finished by the company.

“Kassiou failed to complete the building works in accordance with the due date of their contracts and caused significant financial loss to the owners,” the board of inquiry said.

The audit found Kassiou Constructions invoiced clients for the frame stage of builds, before the required work was completed. (ABC News: Dane Hirst )

According to the board, the audit also found that during another of the builds, Kassiou Constructions undertook works which were not in accordance with its building permit.

The findings follow an ABC investigation that reported allegations Kassiou Constructions left multiple Darwin families in financial difficulty after abandoning their home builds and invoicing for incomplete work.

The audit and decision did not relate to any of the cases reported by the ABC.

In making its decision, the board noted that “it is commonly the view of building certifiers that the building frame is not completed until all framework, including floors, walls and the roof, has been completed”.

“It would appear from the evidence that, a long time ago in the history of Kassiou, unlawful short cuts to building practices became the norm,” the board said.

“There is no allowance in the Act or Regulations for payment prior to works being completed for a stage, like the frame stage of a building.

“Likewise, there is no allowance in the Act or Regulations for saving up amendments to one amended building permit at the end of the build after the changes have been made.

“These building practices are unlawful under the Act and Regulations.”

A derelict residential building site

An abandoned Kassiou Constructions build in Palmerston, which was not investigated by the watchdog. (ABC News: Dane Hirst )

The board said Kassiou Constructions’s practice of not applying for amended building permits before making structural changes “flies in the face of what is expected of an experienced and competent building practitioner in the Northern Territory”.

During the audit, the company’s nominated practitioner and majority owner Louis Kassiou did not respond to correspondence or attend inquiry board hearings.

Instead, co-director Ilias Kassiou cooperated with the investigation and told the inquiry that Louis Kassious had moved interstate to work. The board noted that Ilias Kassiou “did his best to complete the builds where possible”.

In his submission, Ilias Kassiou said that over its past 15 years in operation Kassiou Constructions had “always issued the frame stage invoice once the block work is completed”, and said “regulations do not specify what the frame stage is”.

The Director of Building Control submitted that 15-year time period as one reason to impose a fine “at the higher end”, which the board took into account.

Board makes recommendations

The personal building registration of Ilias Kassiou remains active, meaning he is still able work as a builder in the Northern Territory.

In its report, the inquiry board recommended the Building Practitioners Board “consider whether it would be appropriate for Ilias Kassiou to be under a period of supervision until the Board is satisfied with his level of competency and capacity to comply with all relevant and applicable legislation”.

It also recommended clearer guidelines regarding what works must be completed for each stage of a home build.

The registration of Kassiou Constructions and Louis Kassiou was suspended in June after they “ceased to comply with the qualifications or other requirements of their applications for re-registration”.

In September, the Fair Work Ombudsman announced it was taking legal action against both Kassiou Constructions and Ilias Kassiou, alleging the company did not pay out a long-term employee for accrued annual leave he was owed at the end of his employment.

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