The Victorian government has created a new watchdog for the building industry called the Building & Plumbing Commission.
The new commission has been given new powers and will replace the Victorian Building Authority.
The new watchdog has the power to stop apartments with serious defects from being sold and will increase reporting requirements before occupancy certificates are signed off on new builds.
The watchdog will also be tasked with leading an inspection blitz, including a crackdown on unregistered building and plumbing work.
Apartment developers will be required to provide a bond to cover the cost of rectifying defects 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.
Further changes will be made to the dispute resolution processes as part of the transition to the Building & Plumbing Commission, creating more streamlined pathways to resolve disputes.
The 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 in 2025.
The Victorian Building Authority’s CEO Anna Cronin has been leading a major transformation of the VBA since her appointment in July 2023.
Earlier this year, Cronin commissioned an independent review into concerns raised by consumers about historical practices by the VBA.
The report confirmed that significant changes to the VBA were needed. The reforms are also supported by the Master Builders Association of Victoria (MBV).
The MBV is advocating for better trained trades and sub-contractors on sites who are appropriately qualified and registered to deliver better quality work.