Perth home builder Builton Group was trading while insolvent for several months last year before administrators were called in, but was given a clean bill of health by WA’s Building Commission.

The commission audited Builton in November and the company went into administration in January, stopping work on more than 100 building sites around Perth, owing millions of dollars to creditors and leaving dozens of staff unemployed.

Director of compliance Sandy Randall said the commission would try to impose disciplinary action on Builton’s director and seek to have him declared ineligible to hold such a role.

Ms Randall said there were thousands of registered builders in WA and it was hard to fully scrutinise the financial status of all of them.

“It’s frustrating for us as much as anybody else,” she told ABC radio.

“The ability for us to do comprehensive financial checks of every builder at the time of their initial application or renewal would be quite onerous if we did that in every case.

“We use indicative evidence that they meet their requirements under the act.”

That could be a declaration from an accountant or a certificate of eligibility from home indemnity insurers, who do comprehensive checks, she said.

  • "The commission audited Builton in November". Really? Surely whatever it was that the commission conducted in November, it certainly wasn't an "audit".

  • I wonder if these regulators understand that the rules are to protect consumers and subcontractors from devastating financial losses caused by these collapses. I wonder if they understand the complete dismay and hurt caused .

    I bet also they would know if a builder had not paid their fees . It is not good enough . In QLD the regulator would not know its bum from its elbow.

  • Ditto Trevor and Les!

    No surprises here!

    Of course the WA Building Commission was on board with this company – it is after all the builders' 'PROTECTOR' and it did its' 'protecting'. And who gives a damn about the carnage and lives wrecked and forever lost? Not the BC or any of its buddies! As for the crazy idea that the 'no regulation' agencies are there for consumers or small business, that nonsensical notion is the direct result of combined agencies' SPIN. There is absolutely no truth to this mythical rubbish. Considering that 50% of all insolvencies are in 'building' – and many if not most are via the phoenix trick – we victims are the little silenced lambs to be dispatched to the silent slaughter. It is our cash cow/victim roles, they crafted by Govt under the Biz-Bureau team for us to be the victims of the disaster by design Think of it as the 'recession we had to have' – or the 'failure' the industry must have so that the 1% protected by our Governments can legally steal our life savings and leave our lives first in limbo, and ultimately in ruins!

    This is the land of the 'fair go'! More like the Orwellian "we are all equal – BUT some are more equal than others"! By a long way.

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