Image: Porter Davis
A package of reforms is being introduced for the construction sector in Victoria, providing increased protections for homeowners during the building or renovation process.
In response to the recent liquidation of Porter Davis Homes, the government has taken steps to support affected customers who were left without insurance through no fault of their own. Support payments have been made available to assist these individuals.
To address the issue of builders not obtaining the necessary insurance when accepting deposits, reforms will be made to the Domestic Building Contracts Act 1995, strengthening the requirements for domestic building insurance. Victoria’s building regulators will be granted additional powers to monitor builders’ compliance with insurance obligations prior to accepting a deposit, and strict penalties will be imposed for non-compliance.
Premier Daniel Andrews said, “These reforms are part of a comprehensive review to modernise Victoria’s building system, delivering better protection for Victorians building a home, while providing clarity to the building industry.”
The Victorian Building Authority (VBA) will conduct audits to ensure that builders are collecting deposits and purchasing domestic building insurance appropriately.
Given the current economic challenges faced by builders, including rising supply chain costs, the government will consider providing an extended transition period for certain new National Construction Code requirements, which were originally scheduled to take effect in October. This decision follows consultation with the sector.
As part of the reform package, there will also be opportunities to review the roles of regulatory bodies and enhance the information provided to consumers regarding builders’ obligations related to domestic building insurance.
These initiatives form part of an ongoing building reform program that aims to reshape the Victorian building system, prioritizing safety, compliance, and the construction of durable buildings.
Following the resignation of the former CEO of the VBA, Anna Cronin has been appointed as the new CEO to lead the agency in implementing these reforms and fostering a trustworthy practice and culture.
The Labor Government is already making progress in implementing foundational recommendations from the Building System Review. This includes the establishment of a Building Monitor to advocate for consumer interests, expanding the registration requirements for various industry participants, and strengthening oversight of building surveyors.
Further reforms will be introduced gradually to ensure comprehensive consultation with the building industry.
