Since providing advice to members on reforms to the building industry proposed by the State Government, Master Builders has heard from a number of members.

Following recent discussions, the State Government has confirmed it will have more industry consultation on the matters detailed in their legislation.

  • Domestic building insurance;
  • Registration of building practitioners;
  • Handling of consumer disputes;
  • Processing of building permits; and
  • Introducing new disciplinary procedures and a demerit points system for builders.

You can find our full summary of these changes here.

“Members have been picking up the phone, sending through emails and using our website to share their views on the government’s proposals,” said Radley de Silva, CEO at Master Builders.

“We strongly believe this legislation poses real dangers to the building and construction industry by adding more red tape, delays and costs on to building projects.

“Master Builders has been strongly advocating for the needs of builders in a range of discussions with the Napthine Government and the State Opposition.

“Pleasingly, many members have been assisting us by contacting their local Members of Parliament and expressing their views on this legislation.”


Government opens talks on reforms

This work is paying dividends, with the State Government indicating that further discussions are needed on the Building Legislation Amendment Bill, These discussions will occur in the coming weeks to ensure that our industry is appropriately represented in any future changes.

“It is great that the government is willing to sit down and talk through these reforms so that we can ensure builders are not burdened by more bureaucracy and costs,” Mr de Silva said.

“Senior politicians and their teams have been very open to hearing our concerns and we now have an agreement to stop this legislation and work constructively together.

“There is no doubt that reforms should be introduced to tackle dodgy builders, prevent consumers and subcontractors being ripped off by phoenix companies, reduce rapidly rising owner builder activity and register more tradespeople.

“We want to ensure these types of reforms are pursued to help legitimate builders win and deliver new work.

“I think hardworking builders want consumers to be protected from dodgy work, but not through a system that excessively punishes them and their businesses when they are doing the right thing.”

What’s next?

From 1 July 2014, minor changes will be introduced that will require projects worth $16,000 or more to be covered by domestic building insurance (up from $12,000 today) and the maximum payment to consumers through the insurance will rise from $200,000 to $300,000.

“These changes may lead to modest increases in the cost of insurance policies,” said Mr de Silva.

“That’s why I have personally suggested to the Planning Minister that the government look at ways to ensure builders who have factored current insurance costs into their projects aren’t unfairly hurt by any rise in premiums.

“Minister Matthew Guy was very open to this suggestion and his office will provide advice to us about how this will be handled.”

Other components of the government’s reforms will be dissected and discussed at meetings with policymakers over the coming weeks.

“A key focus of our efforts will be on ensuring an efficient and effective insurance regime is in place, because insurance goes to the heart of builders being able to run their business,” Mr de Silva stated.

“We have seen upheavals in insurance a number of times over the past 15 years and on each occasion it almost killed our industry so it’s vital government gets any future reforms right.

“We want to see reforms that strengthen our residential building sector and we will be regularly updating members on how our negotiations progress.”

More: Building Bill takes aim at builders


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