Homeowner Battles Rogue Builder After Catastrophic Home Extension Project

A Melbourne couple with five children under the age of 11 have faced devastating consequences after hiring SCAL Construction, operated by Craig Wellington, to transform their single-storey home into a double-storey family residence. The project, which began in December 2020, quickly spiralled into a financial and emotional ordeal after a series of serious building defects and non-compliance issues emerged during construction.

History of Company Collapses and Bankruptcy

The homeowners later discovered that Mr Wellington, the owner of SCAL Construction, had a long history of business failures. His previous companies—C.R. and S.B. Wellington and SCAL Nominees—were both placed into liquidation. C.R. and S.B. Wellington collapsed in 2009, owing close to $1 million to secured creditors and an additional $373,948 to 57 unsecured creditors, while SCAL Nominees collapsed in 2020 with combined unsecured and ordinary creditor debts exceeding $455,000. Mr Wellington was also declared bankrupt from 2006 to 2009, following action from Barclay Finance. Despite this history, he obtained a new Domestic Builder Unlimited registration from the Victorian Building Authority (VBA) in December 2019.

Defects, Safety Breaches, and Site Abandonment

After engaging SCAL Construction, the couple reported major defects in the extension works, including problems with the cladding, steel columns, concrete stumps, ceiling, and walls. A report cited damage caused by “careless actions of employees and subcontractors.” WorkSafe Victoria shut down the site following a complaint about workers operating on the roof without proper fall protection. Instead of using scaffolding, workers used a cherry picker that damaged the couple’s garden, causing an additional $6000 in repair costs.

Contract Terminated, Legal Action Begins

SCAL Construction failed to comply with rectification orders issued by the couple’s building surveyor, leading to termination of the contract. The homeowners brought the case to the Domestic Building Dispute Resolution Victoria and later VCAT, where Mr Wellington was ordered to pay $117,921 for faulty works and associated losses. After failing to receive payment, the couple sought Supreme Court action. In October last year, they succeeded in having a liquidator appointed to SCAL Construction.

Mounting Legal Costs and Insufficient Compensation

While the couple received partial compensation through insurance and managed to complete their build with the help of another builder, they are still out of pocket by more than $20,000 in legal fees. They also endured significant emotional strain, high stress, and lost time with their children.

VBA Under Fire for Inaction

The couple accused the VBA of failing to protect them, stating that complaints had been made against Mr Wellington and SCAL Nominees as early as 2018 and again in 2021. Despite a previous $5000 fine issued in 2017 for carrying out building works without a building permit when he was operating as SCAL Nominees ,and multiple VCAT cases for defective and incomplete works, Mr Wellington was granted new builder registration in 2019. The couple submitted multiple complaints requesting suspension of SCAL Construction, but the VBA dismissed the matters as “contractual” and advised going through DBDRV.

Expanded Powers in New Regulatory Body

The VBA has since stated that the new Building and Plumbing Commission will be granted expanded powers, including the ability to order rectification works even after occupancy permits are issued. Under current rules, homeowners are eligible for domestic building insurance up to $300,000 only when a builder becomes insolvent.

A Home Transformed into a Source of Trauma

The couple expressed their deep disappointment in the regulatory system:
“Our home is the place where we spend the most amount of our time… For us, it is a place that now holds the memories of the most tumultuous time in the lives of our young family after enduring a disastrous building project with Mr Wellington and SCAL Construction.”

Despite the resolution of construction and partial financial recovery, the emotional and financial scars remain.