Master Builders Victoria is concerned that the ongoing uncertainty about rectification action of non-compliant cladding could have an immediate effect on the availability of building surveyors and on our sector. This uncertainty has prompted a number of insurers to withdraw the availability of professional indemnity (PI) insurance for building surveyors, which is a legislated requirement for them to practice.
Master Builders Victoria is keenly aware of the urgency of the problem and has been having regular discussions with the government to address it. We are now calling on state and federal governments to find and implement a solution.
What is the urgency?
Up to 30 per cent of building surveyors will be required to renew their insurance by the end of June. If they are unable to obtain insurance, or the insurance offered to them is non-compliant due to exclusions being imposed, many building projects could come to a standstill.
The primary reason for the removal of exclusion-free PI insurance is the perception of increased risks associated with cladding and other non-compliant building materials (NCBM).
The issue is urgent and we need government to put something into action now.
“Neither our industry nor the economy can afford it; our sector employs one in 10 workers nationally and contributes 45 per cent of the state’s tax revenue,” CEO Rebecca Casson says. “The Andrews state government and the Morrison federal government must do something immediately.”
It is now imperative that the federal and state governments take the leading role in solving the problem; the eleventh hour is approaching quickly, with damaging consequences for industry if neglected.
Until an announcement is made, we recommend that you speak with your surveyor to determine whether they will be affected by the 2 July deadline.
We will continue to work with government departments and industry stakeholders to assist them in progressing a solution as quickly as possible and will keep you updated with developments.