MBV and HIA say some elements of proposed new building legislation are illogical and far from fair and reasonable.
With the Victorian Government scheduled to debate its new Building Legislation Amendment (Buyer Protections 2025) Bill in Parliament tomorrow, both Master Builders Victoria (MBV) and Housing Industry Association (HIA) say a close investigation of the new building dispute resolution legislation, shows that some elements are illogical and far from fair and reasonable.
Both MBV and HIA say the new legislation, which is intended to better protect consumers, has been rushed, and in some parts simply doesn’t make sense.
MBV CEO Michaela Lihou said the issues of how and why rectification orders can be put into place need to be better defined.
“For example, as the Bill currently stands, a consumer would be able to lodge a complaint with authorities about peeling paint, up to nine years after they have moved into their home,” she said.
“And this is despite most paint manufacturers only providing a warranty for their products for seven years. Where is the sense in that? How can that be the builder’s fault?”
HIA Executive Director Keith Ryan called the legislation misguided and said it won’t stop unregistered builders continuing to ignore the rules.
He said while the legislation provides additional powers to compel registered builders to fix defective work, it won’t provide the same protection for consumers who engage unregistered and uninsured builders.
“The dodgy operators already ignore the legislation that is currently in place. What makes the Government think they won’t ignore this new legislation?” he said.
“What it will do, is create another layer of legislation that decent builders will be forced to deal with, and for some, it could push them out of the industry. Added to that, it could also push consumers towards uninsured people pretending to be builders, who clearly are not registered but offering cheaper deals that come with virtually no protections for consumers when things go wrong.”
“We’re talking about people’s businesses and livelihoods. We need to get this right!”
“The legislation also effectively requires that a builder who wants to take action to recover unpaid claims from a client, must first seek consent from the regulator to start the long drawn-out process of legal action. There’s no doubt that being forced to wait for the regulator to consent will further delay the chance for a builder to be paid.”
Ms Lihou said the broad definition of a ‘defect’ and a ‘serious defect’ in the Bill also posed potential problems around when and where rectification orders would be fair and appropriate.
“And to add insult to injury, builders have no effective right to challenge the making of an order,” she said.
Both MBV and HIA say the positive intent of the legislation is outweighed by the reality of the impact of these proposed changes, which go way beyond protecting consumers and will unfairly punish reputable builders.
“The Government says it’s committed to building more homes across Victoria and as an industry we’re working hard to encourage more reputable tradies to support that vision, but new rules and laws that don’t make sense, will see them simply say ‘it’s too hard’,” said Ms Lihou.
“Let’s be clear, we all understand the need to protect consumers with a fair, reasonable and respectful dispute resolution process, but this legislation takes a potential sledgehammer to the rights of builders,” she said.
“We need the Government to come back to the table, listen to some feedback about what they’re really proposing, and fix it!”
