Victoria’s building industry is a significant component of the state’s economy, employing almost 7 per cent of the work force and generating over $24 billion in domestic and commercial building work in 2010–11. The audit examined how effective the building permit system is in providing assurance that approved building works meet the required building and safety standards. Specifically, the audit examined how effectively the Building Commission regulates the activities of municipal and private building surveyors and councils enforce compliance with building permits within their municipalities.
The audit found the Building Commission cannot demonstrate that the building permit system is working effectively or that building surveyors are effectively discharging their role to uphold and enforce minimum building and safety standards.
Ninety-six per cent of permits examined did not comply with minimum statutory building and safety standards. Instead, our results have revealed a system marked by confusion and inadequate practice, including lack of transparency and accountability for decisions made.
In the absence of leadership, guidance and rigorous scrutiny from the commission, councils have adopted a largely reactive approach to enforcing the Building Act 1993 that offers little assurance of compliance within their municipalities.
Consequently, there is little assurance that surveyors are carrying out their work competently, that the Building Act 1993 is being complied with, and the risk of injury or damage to any person is being minimised.
Describes the warranty insurance regime in the states where Last Resort insurance exists and is inflicted on both the consumer and builder when a dispute arises.
The Baillieu, O'Farrell, and Barnett Governments all know the issues as they have conveyed them to their parliaments on behalf of builders and consumers over their years in opposition.
Now all are in government and are yet to act on the promises made yet still say it must be fixed, and state we are addressing the issues as they are complex.
Adobe Flash Player not installed or older than 9.0.115!
The Builders Collective of Australia (BCA) was founded on the back of the burdens imposed on the building industry as a result of the HIH collapse in 2001. Since that time, both consumers and builders have continued to be adversely affected with many losing everything as they have tried to obtain justice from Last resort Builders Warranty Insurance providers and brokers.
Many individuals have needed to defend themselves from a myriad of legal threats while trying to lobby for a more just and equitable system for the Building Industry.
There have been 56 public inquiries into last resort Builders Warranty Insurance according to the insurance industry and to date there has not been one skerrick of substantiated evidence that this product is meeting consumer or builder needs. In fact, the Tasmanian Government two years ago joined the Queensland Government in completely dumping this product from their consumer protection regimes. Despite all of this the product remains mandatory with heavy penalties imposed on builders who do not purchase it on behalf of their clients.
The Financial Services Ombudsman has recently released a report, which for the first time, publicly demonstrates that Last Resort Builders Warranty Insurance is the worst performing retail or wholesale insurance currently sold in Australia. Simply put, nearly half of all claims submitted are rejected with an abysmal 2% of policies ever being able to be claimed upon.
For a statutory insurance, these figures would be damnable in any developed democracy in the world, yet in Australia the insurers and their agents appear to hold enough sway over legislators and regulators that we simply cannot get this product dumped in the remaining States.
While this product remains in place, Australians are being hurt and hurt badly. The Builders Collective of Australia aims to right this wrong and in so doing return a measure of ethics and equity into the management of the Australian building industry.
If last resort Builders Warranty Insurance is any example of mismanagement (in fact we believe it is Exhibit A), then such a change is very long overdue.
These stories were on the front page of the AGE newspaper and one would hope they will prick the conscience of the Baillieu Government as this matter is now well beyond a joke and hurting Victorians in the extreme.
There is more to life than money and this insurance can be dropped with a stroke of a pen by your Government right now!
