Victoria announces new building watchdog

In response to concerns about failures in the VBA and other regulatory bodies, the Victorian government has announced a new, more powerful commission for the building industry.

The Building & Plumbing Commission will bring together the Victorian Building Authority (VBA), Domestic Building Disputes Resolution Victoria (DBDRV) and the Domestic Building Insurance (DBI) function of the Victorian Managed Insurance Authority (VMIA). According to the government, this will put consumer protection front and centre and will be a game changer for the people of Victoria.

“This change is the most significant reform to building industry regulation in decades,” says the government.

“The new regulator will combine the key regulatory functions relating to the building industry together under one roof, streamlining the process for consumers and industry and enabling the regulator to have oversight of all complaints so they can be handled more effectively and efficiently.

“Creating an overarching, more powerful regulator that addresses the life cycle of the building process will create a better consumer experience and supports improved standards and quality in the building industry.”

Addressing systemic failure

The Victorian plan responds to a new report exploring serious failures of the VBA to respond appropriately to consumer cases.

The independently commissioned report, written by Bronwyn Weir and Frances Hall, details seven complex and challenging real-life cases that highlight major flaws in the system. It closes with 20 recommendations for policy development, reform or other actions.

“I have met with six of the seven consumers involved, and spoken to the seventh on the phone,” says VBA CEO and Commissioner Anna Cronin.

“Their distress about how the system has treated them is palpable. And, as you will read in the report, there are clearly areas where, if the VBA had had a clear focus and priority on consumers, we would have done things differently and better in terms of outcomes for them.

“I support all of the report’s recommendations in regard to our own practices, in principle, and am committed to implementing them as quickly as possible.”

New powers

The Building & Plumbing Commission will be resourced with new boots on the ground, with a 50 per cent increase in auditors and frontline inspectors, as part of a $63.3 million investment in this year’s budget.

The watchdog will also be tasked with leading an inspection blitz, including a crackdown on unregistered building and plumbing work.

Apartment buyers will also have stronger financial protection, with developers required to provide a bond to cover the cost of fixing poor work for buildings over three storeys. The new bond will be the first step towards introducing a new 10-year insurance product for apartment buildings, with next steps to be developed in consultation with an industry working group equipped to bring rogue builders and building practitioners to account more effectively.

Timing of the changes

The new regulator and its additional powers require changes to legislation to go through parliament as well as new administrative arrangements through government departments.

The changes are slated to come into effect in the first half of 2025. Until then, the government says there will be no imminent changes to business-as-usual activities. Updates will be provided on the VBA website.

The VBA is holding an industry conference at Marvel Stadium on Thursday, November 7.

The event will bring together prominent VBA and industry spokespeople to discuss emerging trends and regulatory approaches impacting the building and plumbing sector.

The conference agenda will feature separate event times for building and plumbing practitioners, and an opportunity to network.

For more information and to register, visit the VBA website.