Peter Apollonio of Innovation Builders found liable following VCAT ruling and VBA penalties

Melbourne homeowners Paula and Tom Virgato were left heartbroken and financially devastated after their attempt to develop three townhouses on their Reservoir property fell apart. Through their company Rockgold Investments Pty Ltd, they entered into a contract with Peter Apollonio, who trades as Innovation Builders.

The couple made progress payments totalling approximately $280,000 before the build came to a halt, citing extensive defects and lack of progress. Their plan was to create long-term housing security for themselves and their children, but instead, they were left with a site requiring full demolition.

Extensive Defects and Abandonment Confirmed

An independent building report revealed numerous issues. According to Daily Mail and 9 News, the property was left in an incomplete and defective state, with a rectification estimate of $1.3 million. The Victorian Civil and Administrative Tribunal (VCAT) later accepted expert reports that found the only viable method of repair was complete demolition and reconstruction.

VCAT listed the following verified defects:

• The frame overhanging the slab, with the attempted fix deemed structurally inadequate

• Garage strip footings cut back, rendering them structurally unsound

• Unconstructed SF5 strip footing

• Incorrect location of the electrical meter box

• Non-compliant brickwork, failing to meet AS3700 (Masonry Structures)

• Walls out of plumb

• Missing malthoid waterproofing

• Overextended brickwork at rear of Unit 3, not matching architectural plans

• Ten confirmed siting errors, where the dwellings were built out of position

• Overall non-compliance with building standards

Paula and Tom also discovered an abandoned dryer on-site used as a toilet, according to 9 News. “I feel like he’s taken our lives away,” Paula said. “That’s a lot of money. That’s our kids’ savings.”

VCAT Ruling Orders Over $600,000 in Damages

In its June 2021 ruling (Rockgold Investments Pty Ltd v Innovation Builders (Vic) Pty Ltd), VCAT found that Innovation Builders:

• Failed to perform building work in accordance with the contract, regulations, and the Building Act

• Caused significant construction delays without justification

• Abandoned the project following a Building Order for Minor Works, without progressing remedial work

VCAT ruled that demolition and reconstruction to frame stage was the most appropriate course of action. The Tribunal ordered that Innovation Builders must pay Rockgold Investments a total of $611,618.38, comprising:

• $555,500 for demolition and rebuilding to frame stage

• $56,118.38 for holding costs (including interest, insurance, maintenance, and reconnections)

VCAT dismissed Apollonio’s counterclaim for an $84,000 progress payment, finding it was not due under the contract as the work was not completed to the claimed stage. A separate claim for variations submitted after the contract’s termination was also rejected.

Builder’s Conduct During Media Inquiry

When approached by A Current Affair in October 2018, Peter Apollonio—referred to by some as ‘Nasty Pete’—initially claimed he did not know Paula and Tom. During the encounter, he grabbed the program’s camera and opened the door of his vehicle into the reporter, causing the reporter to be pushed backwards. In response to questions, Apollonio said:

“You know what guys, you want to get all your investigations done right, because you’re talking a lot of s—.”

According to 9 News, Apollonio became physically aggressive during the interaction, which was filmed and broadcast.

Official Action by the Victorian Building Authority

Separate from the VCAT case, the Victorian Building Authority (VBA) conducted disciplinary proceedings against Peter Apollonio, whose registrations are:

• DB-U 39813 – Domestic Builder (Unlimited)

• CB-L 38405 – Commercial Builder (Limited)

On 3 April 2025, the VBA determined that Apollonio:

• Contravened section 16(2) of the Building Act 1993 by conducting building work not in accordance with the Act, permits, or regulations

• Breached regulation 1502(a) of the Building (Interim) Regulations 2017 by failing to perform work competently and to a professional standard

The VBA imposed the following disciplinary actions:

• A formal reprimand

• $20,000 in financial penalties

• Suspension of both registrations for six months

• Mandatory training requirements to be completed within 12 months

The project location referred to in the VBA decision was the Reservoir site developed by Rockgold.

“This cowboy builder has cost us $280,000. It’s an absolute disaster,” Tom told Daily Mail. With rectification costs estimated at $1.3 million, and multiple legal and regulatory findings confirming extensive failures, do you think the disciplinary action taken by the VBA was an appropriate decision?