The Victorian Government has introduced the Building Legislation Amendment (Consumer Protection) Bill 2015 with new consumer reforms affecting domestic builders.
The reforms include some dramatic and important changes as a first stage of reform following problems with domestic building identified by the Victorian Auditor General earlier in May 2015.
The changes include:
- a new dispute resolution system to be administered by a new body called Domestic Building Resolution Victoria
- a new disciplinary system for building practitioners that will be administered by the Victorian Building Authority
- building registration to be renewable every five years with the building practitioner required to demonstrate the maintenance of competency on renewal
- builders are no longer permitted to appoint a building surveyor
- tougher laws for owner-builders with projects limited to one every 5 years (up from 3 years)
- the possibility of codes of conduct for building practitioners to be issued by the VBA
- a new information statement to be provided to consumers before a building contract is signed
- more specific information about responsibilities of owners and builders in relation to the building project
Of note the dispute resolution system will enable consumer to make complaints about building work 10 years after the issue of a Certificate of Occupancy or Final Inspection. Also, the dispute resolution system cannot be used if the dispute is the subject of legal proceedings at VCAT.
If the dispute resolution system is used, the Chief Dispute Resolution Officer can appoint a Dispute Assessor who will have wide ranging powers to investigate the dispute on the relevant building site including having part of the building works removed or demolished to enable relevant inspections and to carry out testing.
Any Dispute Resolution Order issued against a builder by the Chief Dispute Resolution Officer will also be notified the Insurer.
The Bill has been introduced to the Victorian Parliament but not yet passed. If it is passed, then it is expected to come into force on 1 July 2016.
A planned second round of reforms including the expansion of registration requirements to corporations and making information about a registered building practitioner’s registration and disciplinary history available to consumers is expected to follow in 2016.
This content is intended as commentary and should not be construed as legal advice.
For more information call Melissa Henderson on 03 9629 2211.
