What to expect from the new Victorian Building & Plumbing Commission

An independent review that exposed serious failures in how the Victorian Building Authority (VBA) handled complaints from homeowners facing years of financial distress over defective or homes was the final straw for the State Government. 

Its swift response was to announce it will replace the VBA with a new, more powerful watchdog with greater powers to tackle sub-standard building work. 

The Victorian Building & Plumbing Commission (VBPC) will be given tough new legislative powers to protect homeowners and owners’ corporations against builders and plumbers who carry out sub-standard works.

The VBPC will handle all aspects of building quality control, including regulation, insurance and dispute resolution, into a single agency.

Currently, the VBA could only direct builders to fix substandard work before occupants moved in. 

However, under new rules the VBPC will be able to direct builders and plumbers to fix work not just before move-in day – but also beyond. The state government will work with industry to define the eligible time period.

New powers will also enable the VBPC to stop apartments in new buildings with serious defects from being sold, as well as increased reporting requirements before occupancy certificates are signed off on new builds.

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

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

The state government’s press release announcing the new VBPC stated that homeowners will have better access to insurance if things go wrong, potentially reducing the need for complex and costly legal claims against builders who do the wrong thing.

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 ten-year insurance policy for apartment buildings, with next steps to be developed in consultation with an industry working group.

It remains to be seen as to whether the new VBPC will be anything other than simply the old Victorian Building Authority dressed up in new clothes and attire.

However, any improvement on the current structure will be an overall improvement and will lead to better outcomes for homeowners. •