“Master Builders Victoria welcomes the second reading of the Building Amendment (Registration of Building Trades and Other Matters) Bill 2018 in Parliament on 7 August,” Radley de Silva, CEO Master Builders Victoria, said.

If the Bill passes it will set up two models applicable to the commercial and domestic sectors for prescribed building work:

1. a registration requirement for subcontractors to be expanded from the current registration requirements to include when a subcontractor contracts directly with builders; and
2. a broader requirement for the occupational licensing of employees.

“Master Builders Victoria would be disappointed, if mandatory trades registration of subcontractors was delayed or overshadowed by the impracticalities of a broad employee licensing system. The preference would be to at least take the first step towards subcontractor trades registration – thus at least bringing Victoria into line with the rest of the Eastern Seaboard that have similar trades registration models. ”
 
“Master Builders considers that mandatory registration based on existing domestic trades categories – and focusing initially on certain areas like carpentry, bricklaying, waterproofing and concreting – ensures that the system would be practical, more cost effective and manageable,” Mr de Silva said.
 
“Whilst the introduction of a broader system which applies to the commercial sector and includes occupational licensing of employees might be an admirable goal, it may not be practical and may be too costly. Ultimately, the cost-benefit analysis will determine whether a broader system is a manageable one.”
 
It is understood, that if the Bill passes through Parliament, then a Regulatory Impact Statement (RIS) process, with public consultation, would be undertaken to determine workable models with appropriate categories of registration and licensing. This would include determining scopes of work and skills and qualifications that would be applicable. As such, the stated intention is to allow more than 12 months from the date of the Bill’s introduction for the completion of a RIS process and development of new regulations (the default commencement date for the new scheme is 1 September 2020). Minister Wynne in the second reading of the Bill stated that:
 
“Priority areas for consideration of restricted building work are likely to include carpenters (and framers), plasterers, footing and foundation workers, bricklayers and waterproofers.” (Assembly Proof, Tuesday 7 August 2018, pg 29)
 
These categories are supported by Master Builders.
 
The Bill provides for a transitional process that would also allow time for tradespeople to obtain provisional registration or licenses to develop the appropriate skills and qualifications over a five year period.
 
It will be an offence to carry out prescribed building work if not appropriately registered or licensed, or engage practitioners for prescribed building work if they’re not appropriately licensed or registered. Those offences carry maximum penalties of up to 500 penalty units for individuals and 2500 penalty units for a company.
 
“The introduction of the Bill represents a good first step towards a much needed and called for reform in our industry, but there’s a long way to go because even if it passes through Parliament, a cost-benefit analysis will also need to be undertaken to develop a workable and cost-effective solution.”
 
“Master Builders Victoria has been lobbying for a model of subcontractor registration based on the existing domestic trades registration categories that already exist and are administered by the Victorian Building Authority. Whilst there is a trades registration system currently in place in Victoria, the issue is that is it not mandatory if the subcontractor is working for a registered builder.”
 
“The lack of mandatory trades registration in Victoria is one of the most common issues raised with us by our members. And we have collected signatures attesting to that. In 2015, Master Builders released an online petition calling for mandatory trades registration which over 1250 people signed."
 
“There are some common problems being seen across the industry – from the insurance claims through to disputes about issues like waterproofing, concreting, carpentry and brickwork which have impacts on structure.”
 
“Ultimately it is the Victorian consumers who suffer because they endure higher costs of building and renovations and defective work on their houses. The intent of mandatory trades registration is to enable both builders and consumers to look up trades people on a register to see if they have the skills and qualifications they need - similar to electricians and plumbers.”
 
“Frankly, it’s alarming to think that these proper and commonsense safeguards aren’t already in place to protect mums and dads who invest their savings into having a house built. What’s also concerning is the regularity with which consumers have issues. The Victorian Auditor General reported in May 2015 that nearly one-third of people in the course of their building or renovating experienced problems, and that a high percentage of those incidents involved poor workmanship.”
 
“Greater levels of trades registration will enhance skills, productivity and improve the quality of construction - a win for both the industry and consumers. Master Builders Victoria calls upon the progression of the Bill through Parliament, and a workable and cost-effective solution to ultimately be developed,” Mr de Silva said.
 
The Bill also contains provisions for amending the Building Act and other legislation in relation to various matters including:

• the requirements for mandatory pool and spa register
• various proposals to deal with non-compliant cladding, including the ability for the Minister to make a declaration prohibiting the use of high risk external wall cladding products and the capacity for the regulators to have destructive testing powers
• amendments to the Local Government Act to create Cladding Rectification Agreements (CRA) which will enable owners to upgrade their homes and pay it off via their council rates over a minimum of 10 years (with costs transferred with the property if sold) – using a CRA between owners (or owners corporations), lenders and local councils.

 
Master Builders will monitor the details of the Bill and provide more information to members about the possible consequences of its introduction as it progresses.