The Victorian Parliament recently passed the Building Legislation Amendment (Buyer Protections) Bill. This is disappointing as while the Bill was set up with good intentions, it is flawed and will cause a lot of distress for good reputable builders but do little to protect consumers who have the misfortune or poor judgment to engage a disreputable builder. Some of these problems may be mitigated by the regulations which have to be made for the new version of domestic building insurance to operate. Others will have to be mitigated by the new Building and Plumbing Commission having to manage the expectation of consumers about when and how the new power to issue rectification orders will be used.

HIA will continue to engage with the Victorian government and the new Building and Plumbing Commission to find ways to improve the regulation of the industry without unfair consequences for good builders. We would like to see the government crackdown on unregistered builders as well as those who lend or borrow their building registration (licence lending). There also needs to be action against those who corruptly obtained a building registration.

HIA also wants to see the review of the Guide to Standards and Tolerances completed as a matter of urgency. This document is expected to be an important tool to manage the expectations of consumers.  Now that there is one, and not more, regulators there is no reason for this review to be further delayed.

Over the coming months HIA will provide further guidance to members about how to manage their business to minimise the risks created by the new laws. We start this month with our virtual trade night where the HIA Contracts and Compliance team will provide guidance on how to manage difficult clients.

Finally, it is noted that media reports about the Victorian Managed Insurance Authority (VMIA) have created the impression that premium increases for domestic building insurance are imminent.  HIA has been in contact with the government, and we understand that any increases in premiums are more likely to follow implementation of the new domestic building insurance scheme.  We will stay alert however as we know that DBI premiums have a significant impact on home building clients.