Serious problems with Victoria’s domestic building industry have have cost consumers around $21 million over the past four years.
The state’s Consumer Protection Framework for Building Construction audit also found that a lack of coordination and monitoring between authorities and issues with guaranteeing the competency of both builders and surveyers has led to concerns that domestic builds across the state may not comply with minimum standards.
One of the key problems highlighted in the report relates to domestic building insurance, which the report suggests is unnecessarily expensive while providing only minimal protection for consumers.
A 2010 intervention by the state government led to the Victorian Managed Insurance Authority being given the responsibility to deliver domestic building insurance. A high-cost delivery model was selected as an interim solution, however the continuation of the model over five years is said to have cost consumers $21 million between July 2011 and July 2015.
The report released by the state’s auditor-general John Doyle said that not enough had changed since the 2011 Australian Consumer Survey report showed over one in three building consumers reported a problem with their build.
“Throughout this audit, I have received correspondence from consumers highlighting the issues that they have faced and the personal, sometimes profound, impact that trying to resolve these issues has had on their lives,” he said in the report.
“Given these impacts, and the significance of the building industry to the Victorian economy, Victorians are entitled to a consumer protection framework for domestic building construction that provides appropriate protection when they need it.”
“This is not just important for consumers, but also for builders themselves who have an interest in maintaining a personal and industry reputation for quality workmanship, professionalism and value for money,” he said.
The audit examined the performance of key industry bodies, including the Victorian Building Authority, the Building Practitioners Board, Consumer Affairs Victoria and the Victorian Managed Insurance Authority.
Some of the key recommendations of the report included a review of the practitioner registration and disciplinary processes, a review of the surveyor regulations to maintain the independence and objectivity of the role as well as the improvement of consumer access to timely and straightforward information.
To read the report in full, click here.
