Diamond Builders Fights Suspension with Tribunal Appeal to Complete Glenroy Project
In a recent Victorian Civil and Administrative Tribunal (VCAT) ruling, Diamond Builders Pty Ltd and its director, Waleed Khumra, secured a conditional stay on their suspension by the Victorian Building Authority (VBA). The stay allows them to complete an ongoing project in Glenroy, despite serious allegations of regulatory violations across multiple building sites. A VBA-commissioned report identified several defects in the incomplete Glenroy Works, supporting the VBA’s position that allowing Diamond Builders to continue would not be in the public interest. Additionally, a prior investigation into Diamond Builders uncovered a series of alleged breaches across contractual and construction standards, leading to fines that totalled up to $200,000, a cancellation of his building registrations along with a three-year ban from the industry. These disciplinary measures stem from claims of unapproved building works, overcharging clients, and failures to meet required building stages and Australian standards.
The Suspension and Alleged Breaches
On September 12th, 2024, the VBA suspended Diamond Builders, alleging over 100 breaches of construction laws spanning five projects in Melbourne’s southeast suburbs, including Chadstone, Hampton East, and Bentleigh East. Allegations included:
- Failing to obtain the required building permits before starting work.
- Demanding higher payments than the progress payment limits set under the Domestic Building Contracts Act.
- Not notifying the relevant building surveyor about the completion of mandatory inspection stages, which prevented necessary inspections from taking place.
- Ignoring written directions to fix identified defects and issues on multiple projects.
- Varying contract terms in ways that did not comply with the Domestic Building Contracts Act.
- Undertaking building work without valid or required insurance coverage.
- Failing to follow contract requirements and consumer protection standards as specified by construction laws.
The immediate suspension blocked Diamond Builders from starting any new projects, limiting their actions to making current sites safe for potential handover to other contractors.
VCAT’s Ruling on the Glenroy Project
On October 28th, 2024, VCAT Deputy President E. Riegler allowed Diamond Builders to continue work solely on the Glenroy project, a 16-townhouse development in its final stages. Under the ruling, the stay applies only to necessary work for completing this specific site and addressing any defects previously flagged by developers, surveyors, or the VBA.
VCAT emphasised that the Glenroy project was nearing completion, with remaining tasks primarily related to landscaping and minor finishing. Blocking Diamond Builders from finalising the project could potentially cause unnecessary deterioration or delays, impacting both the developer and property buyers.
Strict Conditions Imposed
To ensure oversight, VCAT placed several limitations on Diamond Builders while allowing them to finish the Glenroy project:
- Work is restricted to the Glenroy project only, with no permissions for new contracts or additional projects.
- The stay order expires on the 20th of December 2024, with potential for early revocation if conditions are breached.
- The VBA may inspect the Glenroy site with 24 hours’ notice to confirm compliance with regulatory standards.
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