(1)  A permit authority –

(a) is to refuse to grant a permit of substantial compliance if a certificate of substantial compliance has not been granted in respect of the building work; and

(b) may refuse to grant a permit of substantial compliance if he or she considers the refusal reasonable in the circumstances.

(2)  A permit authority must notify an applicant for a permit of substantial compliance, in writing, of –

(a) his or her refusal to grant the permit of substantial compliance; and

(b) the reasons for his or her refusal; and

(c) the right of appeal under this Act in respect of the refusal.