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{{propApi.successMessage}} {{region}} Change locationReform of building act is necessary
Reform of building act is necessary
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“HIA’s regular engagement with the Victorian government has enabled us to make several suggestions to address the current challenges facing the home building industry stemming from acute labour shortages and material cost increases that are creating delays in building work and causing cash flow difficulties,” added Mr Ryan.
“There is a need to reform the domestic building contract legislation to ensure that builders are paid more promptly for work that they have undertaken.
“Builders have faced significant ‘cash flow’ challenges over recent years, which are largely attributable to this legislation.
“Reform of this legislation will take time to implement and will not address the current challenges, or contracts already signed. Possible reform is positive news from the government at a time when industry needs confidence and certainty.
“Unnecessary red tape and delays in the planning process, along with out-of-date domestic building contract laws, have exacerbated the labour shortages and material cost increases. Victorians are disadvantaged by these out-of-date laws.
“Reform will reduce delays in supplying new homes and allow builders to enter into better contracts that balance price certainty and flexibility for consumers.
“We look forward to continuing to work with the government through this process,” concluded Mr Ryan.
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Update: contracts signed before 1 July 2026 and optional cover
HIA will continue to update you as we receive further advice and information on the ongoing transition from Domestic Building Insurance (DBI) to the First Resort Home Warranty Scheme (FRHWS).
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