Following an independent review of Victorian Building Authority’s (VBA) handling of complaints from homeowners, the Australian Institute of Architects (the Institute) has welcomed the government’s move to transform the Victorian Building Authority into a more integrated and powerful body.
David Wagner, the Institute’s Victorian Chapter President, said the change would better look after homeowners and improve the health of Victoria’s building industry.
He emphasises the benefits of the Authority’s new ability to conduct more inspections, enforce repairs for defective work, and improve the mandatory insurance system.
“These changes are essential for rebuilding consumer trust and raising standards in the building industry, particularly the housing market,” says Wagner. Wagner also stresses concerns that many of the reforms only apply to homes over three stories.
“The existing mandatory domestic building insurance has been outdated for some time, many new homes are being built within multi-residential blocks and towers,” he says.
“Making insurance a genuine safety net by expanding beyond three stories and being a first resort system will revolutionise the confidence of the community.”
Wagner says that the proposed 50 percent increase in building inspections is a welcome move that will address substandard practices and promote an industry culture centred on quality.
He says the government’s suggestion that developers be accountable for projects post-handover through bonds and a decennial liability insurance scheme is a significant advancement.
“The Institute advocates extending this approach to all builders, ensuring mandatory contractual guarantees for all projects — this would incentivise builders to address defects directly or provide financial means for consumers to hire alternative trades,” says Wagner.
“The Institute’s ABIC contracts afford this protection to consumers, and we believe it should be adopted as industry practice.”
Wagner urges that the next step is for improved licencing and mandatory continuing education to occur throughout a tradesman’s working life, ensuring all trades can provide consistent work with ever evolving regulatory requirements.
“Many building issues involve failed waterproofing, yet membrane waterproofing contractors are currently not required to be insured and are not regulated through a licencing system,” he says.
“Improved licencing and education as well as mandatory trade insurance would improve building standards and reduce the amount of poor work that needs remediation.”
Wagner emphasises that the Institute commends the state government’s commitment to a more effective building regulator and urges continued efforts to address other regulatory gaps.
“The most effective strategy for addressing construction defects is to prevent them from occurring in the first place — this is crucial as Victoria prepares to meet the challenge of constructing up to 80,000 new homes annually to accommodate its growing population.”
