Jonesy Construction went bust in May last year. Photo / NZME
Jonesy Construction went bust in May last year. Photo / NZME
A builder has had his licence cancelled after taking money from more than 20 customers to obtain Master Builder guarantees that he never lodged.
Benjamin Jones’ company Jonesy Construction went bust in May last year leaving roughly 27 clients with half-built homes and no insurance.
This week the Building Practitioners Board released its decision to cancel Jones’ licence as a Licensed Building Practitioner and disqualify him from reapplying for six months after it found he’d taken money from clients to obtain a Master Builder guarantee on their homes, but never actually lodged them.
It also fined him $4250 to cover the cost of the hearing.
It’s unclear from the decision how much money Jones took from 20 homeowners, nor whether he paid it back.
However, the Master Builders website lists a 10-year guarantee for a building project quoted between $30,000 and $200,000 as being $825.
Prices for cover increase with the cost of the construction with builds up to $2 million costing $3000 to insure. Anything above that and customers are advised to call the association directly.
According to its website, the guarantee covers the homeowner for 10 years and starts at the time they sign the contract. It covers them from loss of deposit and non-completion, materials and workmanship, and structural defects. It is fully transferable if a person sells their house and the Guarantee provides cover not included by general house insurance.
Attempts to contact Jones by the Herald have been unsuccessful, with his website deactivated as well as his email and cellphone.
Jones’ deception was discovered after a client made who had a multi-unit project under construction made a claim under his Master Builders’ guarantee but was told he wasn’t insured.
Jonesy Construction's website has since been deactivated. Photo / Supplied
The board noted that between 20 and 27 other clients may have been in the same situation. The Herald understands that some 20 families are taking legal action against Master Builders.
It said the complainant had given his forms and his deposit to Jones to pay for the guarantee, but they’d never been lodged.
By way of explanation, Jones told the board that it was an “administrative oversight”.
“The board does not accept that explanation,” its decision reads.
“A single instance might be considered an oversight. However, there are potentially some 20 to 27 clients of Jonesy Construction that have been left without the protection of a Master Build Guarantee.”
The board said Jones’ conduct indicated a pattern of behaviour.
“He was a Master Builder, knew the required processes, had possession of the form and did not submit it and knew or ought to have known that the application had not been made.
“Given the importance of a Master Build Guarantee, the board would expect a Master Builder, who is also a Licensed Building Practitioner, to know or check that an application has been accepted.”
The board said Jones had put his client in an unenviable position and had financially benefited from not submitting the forms.
“The losses that will be suffered by those impacted are significant,” the board said.
“The offending is serious, and it is aggravated by there being two findings of disreputable conduct under consideration.
“The board considers the respondent poses a risk to the public, and whilst his competence as a Licensed Building Practitioner has not been called into question, his ethics have.”
Master Builders has also been approached for comment.
