Darwin company Kassiou Constructions has been slapped with a record fine of $94,200 after admitting to invoicing customers for incomplete building work over a 15-year period.
The company, owned by Louis and Ilias Kassiou, was investigated by the Northern Territory’s Building Practitioners Board of Inquiry (BPBI) following an audit of five home construction projects between 2021 and 2023.
The audit revealed that Kassiou Constructions billed clients for the completion of the frame stage of the project, despite the work being unfinished. In four of the cases, the company invoiced customers prematurely for work that was not completed on time. The frame stage was never completed in two of these builds.
The BPBI concluded that Kassiou “failed to complete the building works in accordance with the due date of their contracts and caused significant financial loss to the owners.”
The company was also found to have completed work that did not align with building permits, and its practice of billing for unfinished stages violated regulations that prohibit payments before work is completed.
The inquiry highlighted that it is a standard expectation for the building frame to be fully completed—walls, floors, and roof—before payment is made for the frame stage. The BPBI noted that Kassiou Constructions appeared to have adopted unlawful shortcuts to building practices over time.
The audit also revealed that Kassiou Constructions did not apply for necessary changes to building permits before making structural amendments, a practice deemed unacceptable for a licensed building practitioner in the NT.
While Louis did not attend the hearings or respond to inquiries, co-director Ilias cooperated with the investigation, claiming the company only issued invoices after the block work was completed. Ilias also argued that the regulations do not specifically define when the frame stage is completed.
The BPBI has recommended that Ilias undergo supervision to ensure compliance with building regulations. Kassiou Constructions’ registration, along with Louis’, was suspended in June after failing to meet re-registration requirements. The company has since removed its website and is now listed as permanently closed.
Source: Daily Mail.
