The Victorian Government has made recent changes to Victorian building laws which came into effect on 4 July 2016. The changes extend the powers of the Victorian Building Authority (VBA) and will affect building practitioners, building surveyors, owner builders and all home owners. The aim of the changes is to increase consumer protection in the domestic building industry.
Changes from 4 July 2016
The changes strengthen the requirement for building permits to be issued for all domestic building works before building starts. This obligation will fall onto building practitioners, architects and home owners including owner-builders. Home owners may be exempt from this requirement if they can prove that a building practitioner or architect has been engaged for the building works. Failure to ensure that a permit has been issued before the works start is an offence that may result in significant penalties payable by individuals ($75,500) and companies ($377,000).
The VBA also now has the power to inspect owner-builder sites to ensure compliance with building laws and regulations and may issue directions to fix faulty work. The VBA’s powers include entering land to examine work and requiring owner-builders to produce documents.
The new changes give building surveyors powers to issue directions to fix building works if the works fail to comply with relevant laws and regulations or the permit. The VBA can also issue building directions. If a builder fails to comply with a building direction, written notice must be given to the VBA and the home owner. Builders may be fined up to $75,500.00 for failing to comply.
Upcoming changes
Further changes will come into effect next year including the establishment of Domestic Building Dispute Resolution Victoria which will handle all building work disputes before parties are able to apply to VCAT or the courts. The VBA will also be given increased powers to impose sanctions including the suspension or partial suspension of building regulations. Building practitioners will need to be renew their registration every five years unlike the current situation where registration is indefinite subject to insurance renewal. Further, the current practice of builders engaging building surveyors will be prohibited with home owners directly engaging the building surveyor instead.
If you are unsure how these changes will affect your business or the building of your house or renovation, then please call our building law expert, Melissa Henderson on 9629 2211.
This content is intended as commentary and should not be construed as legal advice.
For more information call Melissa Henderson on 03 9629 2211.
