A new regulator with new powers
The major overhaul of the Victorian Building Authority (VBA) is in full swing as we aim to improve consumer outcomes and use our powers to their fullest extent.
Last October, the Victorian Government announced the establishment of the Building and Plumbing Commission (BPC). A new and powerful watchdog overseeing domestic building and plumbing industries across Victoria, the establishment of the BPC will be one of the most significant reforms to the building and plumbing systems in more than three decades.
The new regulator will bring together all aspects of building quality control – regulation, insurance and dispute resolution – in a single agency.
The BPC will also have tough new powers, including for enforcement. Currently, the VBA cannot direct builders to fix non-compliant work once an occupancy permit has been issued.
Subject to the passage of a Bill introduced to Parliament in March, the regulator will get new enforcement powers which will apply after someone moves in. This power will enable the BPC to issue an order for rectification of non-compliant work once the occupancy permit is issued.
According to the Bill, the powers will come into place by the end of 2025 and make the BPC a one-stop-shop for consumer protection and regulation of the Victorian building and plumbing industries.
In line with the NSW scheme, the BPC will also oversee a developer bond scheme for an interim period. Set at two per cent of the cost of constructing the building, the bond will be held by the regulator and released to pay for rectification works as needed. The balance will be returned to the developer.
The developer bond is a precursor to the Government's reform to introduce a decennial liability insurance scheme to protect apartment owners.
