Domestic building consumer protection reform strategy released

The Victorian Coalition Government has released a wide-ranging package of reforms to give better protection to consumers for building works for new or renovated homes, and to provide fairer, quicker and cheaper resolution of disputes.

The reforms are set out in the Coalition Government’s Victorian Domestic Building Consumer Protection Reform Strategy released today by the Minister for Finance Robert Clark,

Minister for Planning Matthew Guy and Minister for Consumer Affairs Heidi Victoria.

Key elements of the reforms include:
•a one-stop-shop for building practitioner regulation and domestic building consumer protection;
•inspectors to make on-site inspections and give rulings on disputes;
•better and more accessible insurance cover;
•improved builder registration standards, oversight and discipline of non-performing builders;
•improved oversight of building surveyors and the building permit system; and
•better and more accessible information for consumers.

“These reforms recognise that the current system is not working as well as it should for either consumers or for builders,” Mr Clark said.

“It can be far too difficult for consumers to get justice when a builder does the wrong thing. Builders who give the industry a bad name are too often not being held to account, while honest, capable and hard-working builders can be tied up with insurance paperwork and lengthy disputes with unreasonable clients.”

Mr Guy said these reforms to domestic building regulation and consumer protection would build on the reforms to building industry regulation already underway.

“Under these reforms, the Victorian Building Authority will be the one-stop shop for all aspects of industry oversight – practitioner registration and discipline; supervision of building permits; advice to domestic building consumers; and inspectors who will inspect and make rulings on disputes,” Mr Guy said.

“Either a consumer or a builder will be able to call in an inspector when a dispute can’t be resolved between them. The inspector will then visit and make a ruling that will be binding on both parties unless and until appealed against.

“If a builder fails to comply with a binding ruling by an inspector or by VCAT before the end of the building project, the consumer will be able to claim under their building insurance, and the insurer will then have the right to recover the payout from the builder.”

Ms Victoria said that the reforms would provide a fairer and more effective system that will benefit both consumers and builders and give Victorians confidence in the domestic building industry into the future.

“These reforms are expected to reduce the number of building disputes and when disputes do arise, to help them to be resolved quickly, fairly and cost efficiently,” Ms Victoria said.

“While the majority of domestic building projects are completed to a high standard and in a timely manner, there is room to improve the consumer protection framework.”

Today’s reform package has been developed after considering submissions to the Domestic Building Consumer Protection Public Discussion Paper issued by the Coalition Government in April last year.

Following the release of today’s strategy, further consultation will take place with builders, insurers, consumers and other stakeholders on implementation of the strategy, with reforms to commence progressively over the course of 2013 and 2014.

A copy of the strategy document can be downloaded from www.dtf.vic.gov.au.