One VBA case involved a family who paid an extra $2m two years after signing a contract, only for it to be terminated when the house was half finished, forcing them to pay another $2m to another builder for its completion. Photo: Facebook.
The Victorian Government has unveiled plans to overhaul the state’s building regulator as its head apologised for historical inactions on consumer complaints that “are truly heartbreaking”.
CEO and Commissioner of the Victorian Building Authority (VBA), Anna Cronin, launched an investigation into the building regulator after assuming the role in July last year. While she had already introduced several changes to begin addressing many of the legacy problems raised in the ensuing report, Ms Cronin said “I apologise for the role the VBA has played”.
“I am dedicated to focusing the Victorian Building Authority (VBA) on its fundamental goal of improving consumer outcomes,” she said. “It is clear the performance of the authority has fallen well short of this standard.
“This is why I commissioned Weir Legal and Consulting to conduct an independent review of seven of our most complex consumer cases. It identifies significant practitioner misconduct and ineffective regulation compounded by poor complaint handling.
“A combination of these factors and an imperfect civil legal process has resulted in ongoing emotional and financial stress for the seven consumers. The report clearly identifies examples of where the VBA failed to use its powers to their fullest extent, and didn’t treat consumers with the respect they deserve.
“These cases are truly heartbreaking, and I’m appalled at how badly each individual has been let down by practitioners, the VBA and the building system.”
All of the builders involved with these complaints cited in the report date back to 2014.
While they have all had their registrations cancelled, suspended or under investigation, the VBA claims it is determining whether any further disciplinary action can be taken against other practitioners involved – including plumbers, building surveyors and inspectors.
Investigators Bronwyn Weir and Frances Hall wrote in the report that each and every one of the complainants’ lives had been negatively impacted – “they have watched their savings or superannuation be replaced with debts they cannot bear”.
Their report details how the VBA preferred to work solely on issues and practitioners identified in complaints, rather than examine other “plainly evident” issues. It also describes the regulator’s culture as dismissive of complainants, with staff failing to recognise the trauma involved and encouraged to push back against their troubles.
“Because the regulation of the sector has been ineffective over many years, poor standards of building work and unethical conduct have been allowed to flourish in Victoria’s building industry,” wrote the investigators.
CEO Anna Cronin said Victorians should expect nothing less than buildings that are safe to occupy, compliant with legislation and regulations and built to last. Photo: VBA.
The report made 20 recommendations to inform the Victorian Government as it replaces the VBA with a new and more powerful watchdog named the Building & Plumbing Commission (BPC).
Ms Cronin supported all of them in-principle and said she was committed to implementing them with a new consumer-centric approach. Many have already been adopted or are in the process of being implemented.
For the first time, the regulator will house all aspects of building quality control in one agency – including regulation, insurance and dispute resolution. It will give the regulator new powers to direct builders to fix substandard work well before the move-in day.
BPC will also be able to stop apartments with serious defects from being sold, and it will increase reporting requirements before occupancy certificates are signed off on new builds.
The new watchdog has already been given a $63.3 million investment in this year’s budget, which is expected to foster a 50 per cent increase in auditors and frontline inspectors. It’s first task will be in leading an inspection blitz, including a crackdown on unregistered building and plumbing work.
Victoria’s government is also working with industry and consumer groups on reforms to ensure the rules around domestic building contracts are clear and fair, with legislative change expected next year.
The VBA’s previous board has been replaced by Ms Cronin as the sole commissioner, who will report directly to Planning Minister Sonya Kilkenny.
