This article was written by Charlie Wardrop as part of his internship with us here at Beck Legal. Charlie is currently studying Law and International Studies at Deakin University Geelong.
As part of a recent set of housing policy announcements, the Allan Labor government has overhauled the Victorian Building Authority with a new industry regulator. The new Building and Plumbing Commission (BPC) incorporates the Domestic Builders Insurance (DBI) functions of the Victorian Managed Insurance Authority. Additionally, the Domestic Building Dispute Resolution Body has been consolidated into a more stringent stakeholder in Victoria’s push for an increase in housing supply. The Allan government seeks to bring insurance, dispute resolution and building quality control into one, more streamlined agency.
One of the new powers granted to the BPC is the issuing of developer bonds for any apartment building over three storeys tall. This new bond is the first step in working towards a more permanent 10-year insurance liability scheme which protects buyers from serious building defects after that apartment is occupied. Any future occupants will have access to this bond should any repairs be needed because of defective construction.
This new developer bond works in conjunction with the BPC’s new powers to order work to be done before and after occupancy. Only after a builder disappeared, went insolvent, or died would there be grounds to access relief from the DBI. In this new ‘first resort system’, previously lengthy legal proceedings which could only be initiated under the DBI scheme can be immediately acted upon by the BPC for occupants.
The BPC’s new ‘rectification orders’ will provide additional avenues for consumers to find peace of mind in the quality of their new homes. These rectification orders if not followed are to be covered under an expanded DBI scheme.
Compliance with these new developer bond obligations will be supported by a $63 million dollar budget increase for auditors and inspectors. This funding increase coupled with the developer bond proposals ensure a more transparent and secure incentive for buyers and developers alike.
For More Information on the new scope and powers afforded to the BPC, visit the State Government’s press release at the link below:
https://www.premier.vic.gov.au/new-building-watchdog-teeth-protect-victorians