‘Not inhabitable’: Shoddy builder ordered to pay $350k over ‘unsightly defects’ in homes
A Sydney builder has been ordered to pay $350,000 after leaving two homes with cracked brickwork, dodgy pipes and visible defects.
EXCLUSIVE
A Sydney builder has been ordered to pay his niece’s husband almost $350,000 in damages after leaving more than 120 “unsightly” defects across two homes in the city’s south.
Sans Souci man Sami Haddad hired Elrob Construction Group in 2018 to construct two double-storey brick houses on a block of land he owned on Sandringham Street at the cost of almost $1.5 million.
The organisation is owned by Mr Elia Elrob Boujaoude, who is Mr Haddad’s wife’s uncle.
Mr Boujaoude faced the NSW District Court this week after he was found to have left 127 “separate defects and incomplete work items” across the two homes.
The court heard how various pipes were improperly installed, the houses were poorly painted and that multiple defects had caused cracking in the brickwork.
Mr Haddad told the court how he contacted NSW Fair Trading in 2020 after the works were left incomplete.
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The court heard how prior to this, Mr Haddad had emailed Mr Boujaoude, writing: “We need a deadline to complete this project. It’s dragged on for far too long. It’s costing week on week with no rental return. We can’t keep living like this. I’m sure you can appreciate that Elie.”
Mr Boujaoude responded: “Last week I was available to meet you on site again, but you were busy. As far as I’m concerned my work has been completed.”
The court heard how photos taken as part of the “Final Progress Inspection Report” showed “very much a building site” with a builder’s “welded mesh fence and sand and debris around the houses”.
“The photographs of the interior of the houses show that there is no splash back in the kitchen, the kitchen walls are untiled and unpainted, the oven is covered in plastic wrapping, there are exposed and unconnected electrical wires, internal painting has not been done in many areas, internal stairs are bare timber, flooring has not been laid in some areas, a toilet has not been installed in a bathroom, and the interior is dirty and littered with debris,” the report outlined.
“The houses were not inhabitable at the date of the report.”
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In his evidence, Mr Boujaoude did not admit that the work was “defective or incomplete” but said that he was “ready and willing” to remedy the situation.
District Court Judge Susanne Cole SC found Mr Boujaoude had breached the contracts as the standard of work was “not done with due care and skill”.
Elrob Construction Group Pty Ltd was ordered to pay Mr Haddad a total sum of $346,580.91 for the breach of contract.
Elrob ordered to pay more than $1m
Earlier this year, Elrob Construction Group was ordered to pay more than $1 million to a couple in the Northern Beaches in a separate civil court case after their multimillion-dollar luxury home was left unfinished and riddled with “severe defects” after three years of construction.
Doctor Dror Schmuelly and his wife, real estate agent Louise, bought the five-bedroom home in Bayview in 2007 for $1.55 million and hired Elrob in 2017 to transform the house into a “luxury high-end” property.
The court heard director Elia Elrob Boujaoude told the couple: “I have built many high-quality luxury houses. This is my passion. I have some houses that I can show you.”
The court heard that one of the homes he showed the couple was a luxury property in Palm Beach; however, it was later realised that he had built a $177k fit-out for a cafe in a retail space at the site.
When construction was ongoing in mid-2019, Mr Schmuelly became concerned about the works, emailing Mr Boujaoude about some of the noticeable defects.
In November 2019, Mr Schmuelly had his lawyer hire a building consultant. The court heard how the consultant’s “jaw dropped” when he attended the home on Cabbage Tree Road.
“He informed us how severe the defects and noncompliance issues were and informed us that in no way we should actually allow anything to be installed and that we should demand that [the builder] fix all the defects,” Mr Schmuelly told the court.
Mr Boujaoude was ordered to pay $1.13 million plus interest in damages to the couple.
Naremburn homeowner speaks out
In 2007, homeowner Paul Garratt was left furious after he was left with a “half-renovated shell” after hiring Mr Boujaoude’s Elrob Construction Group.
The project at his Naremburn house was set to be a 45-day $99,000 contract; however, it was instead left with a “virtually uninhabitable” house after coughing up $107,000.
“He said he couldn’t keep working unless I gave him more money and I did that, which was just crazy, in hindsight,” he told the Sunday Telegraph at the time.
“I called in the Office of Fair Trading and they did an inspection and told me there was still about $80,000 worth of work to be done.”
Mr Garratt said he was eventually awarded a Home Warranty Insurance payout from CGU after taking the matter to the Consumer, Trader and Tenancy Tribunal.
Originally published as ‘Not inhabitable’: Shoddy builder ordered to pay $350k over ‘unsightly defects’ in homes
