
Victoria’s Building Regulator Faces Overhaul Amid Damning Report
The Victorian Building Authority (VBA) is set to be replaced following a damning independent review that revealed widespread failures in protecting homeowners from defective and incomplete building work. The Victorian government has announced plans to replace the VBA with a new regulator equipped with stronger powers to safeguard consumers, including preventing the sale of apartments with unresolved defects.
VBA’s Failures Exposed in Scathing Review
The report, conducted by Weir Legal and Consulting, unveiled significant shortcomings in how the VBA handled complaints from homeowners affected by faulty construction. The review highlighted numerous cases where complaints were either lost, ignored, or mishandled, leaving homeowners facing severe financial, emotional, and physical distress.
Among the report’s key findings were instances of duplicated or lost complaints, a lack of technical inspections, and delays in investigating serious allegations against builders. The report also noted that some VBA staff dismissed complainants as “emotional” or “stirring up trouble,” further exacerbating the already traumatic experiences faced by homeowners.
Widespread Impact on Homeowners
The Weir Legal and Consulting review highlighted significant failures in the VBA’s handling of long-standing and complex complaints involving breaches of legislation by building practitioners. The report examined seven case studies, including families, apartment owners, and a property developer, all of whom faced issues with the construction of 75 homes, 22 of which remain incomplete. In one case, a couple nearing retirement continued to pay for alternative accommodation nearly five years after signing a construction contract, as major defects led to an ongoing dispute.
In another case, a serious complaint about builder non-compliance was lost by the VBA, with the complainant only being informed two years later that it had never been lodged. The affected individuals suffered severe financial, emotional, and physical distress from their interactions with both the VBA and the building industry, with the report stating that their savings and superannuation were replaced by insurmountable debts.
CEO Apologises for VBA’s Failings
In response to the report, VBA chief executive Anna Cronin issued a public apology, acknowledging the organisation’s failures in handling consumer complaints. In a letter to one of the complainants, Ms Cronin admitted that the VBA had not met expectations and apologised for the delays, lack of empathy, and the additional stress caused by the regulator’s ineffective processes.
“I take responsibility for the VBA’s shortcomings in its handling of your complaint,” Ms Cronin wrote. “We should have been faster and more focused in our investigation, and more helpful to you.”
Government Promises a Stronger Regulator
In light of the damning review and in response to growing concerns, the Victorian government has announced a major overhaul of the regulatory framework for the building industry. A new regulator, the Building & Plumbing Commission, will be established to replace the VBA, Domestic Building Disputes Resolution Victoria (DBDRV), and the Domestic Building Insurance (DBI) functions of the Victorian Managed Insurance Authority (VMIA). This new entity will serve as a one-stop shop for all building and plumbing-related complaints, insurance, and dispute resolutions across Victoria, providing stronger consumer protection and more streamlined services.
Among the new regulator’s key powers will be:
- A new rectification order power to allow the regulator to act against a builder after the occupancy permit is issued. This is important because defects are often only discovered after the homeowner moves in.
- Compelling developers of apartment buildings above three storeys to notify the regulator before a building is occupied, so the regulator can conduct a final inspection.
- Apartment owners will be better protected with a strata bond introduced for mid- to high-rise apartment buildings. This ensures funds are available to rectify defects after the occupancy permit is issued.
- DBI will be expanded to respond when a builder has failed to comply with the new rectification order. This means the builder must no longer be insolvent, have disappeared, or died before a claim can be made.
These reforms, scheduled to come into effect by mid-2025, will provide a more cohesive approach to regulating the building industry and ensure that both homeowners and practitioners are better supported throughout the building process. Further details regarding the transition and implementation of these changes will be provided closer to the launch of the new regulator.
An in-depth video detailing this information will be released by Site Inspections in the coming weeks.
Our Blog
YOUR GO-TO RESOURCE HUB
Whether you’re on the hunt or have already settled in, we’ll arm you with the know-how and confidence to keep your home safe and compliant. With our guidance, you can make informed decisions and steer clear of common pitfalls.