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{{propApi.successMessage}} {{region}} Change locationHIA welcomes changes providing confidence for home building
HIA welcomes changes providing confidence for home building
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HIA WA Executive Director Michael McGowan said the proposed changes are a positive step towards restoring confidence in the residential building sector.
“These reforms signal to both industry and consumers that the legislative framework is being modernised to reflect today’s challenges and also provide a realistic and workable pathway for builders who may be struggling to meet their financial obligations.
“HIA acknowledges that the last five years of home building has presented incredible challenges for consumers and builders, and a review is needed to ensure that the Home Building Contracts Act and associated legislation is fit for purpose in today’s environment.
“Industry was surprised to learn that the building regulator had limited ability to intervene when a builder was showing significant signs of distress.
“This gap has impacted not only consumer confidence, but also builders, sub-contractors, suppliers and the broader industry. Earlier intervention may help reduce the impact in these situations."
HIA noted that the increased powers were welcomed but expected that they would be used as the exception rather than the norm.
“99% of builders are doing the right thing and managing a very challenging environment that includes a constrained labour market.
"This announcement and the Government’s approach should be seen as a positive step by both builders and consumers,” said Mr McGowan.
The WA Government also announced a formal review of the Home Building Contracts Act 1991—a move HIA has been advocating for over the past two years.
“The Act is over 30 years old and a review is necessary given the many changes to home building since 1991.
“It’s been well documented that new home construction prices have increased by 50-60% in the last five years and many builders have been trapped by this rapid escalation in fixed price contracts,” stated Mr McGowan.
“There are also ambiguities in the laws causing strain on both consumers and builders.
"There have been significant changes to the process of building a home over the last 30 years. Land availability is tight, and engineers, planners and energy assessors are all more involved in the process, making it longer to get jobs to site and creating challenges when costs escalate during this process.
“A review is not only good for consumers but also builders who are looking for greater clarity from the Home Building Contracts Act and the process of dispute resolution.
“This is a great opportunity for industry, consumers and all stakeholders to provide genuine feedback on the cause of recent challenges and how they could be avoided in the future,” concluded Mr McGowan.
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