It has long since been known that Australia’s building industry is aggressively protected by the government, at the cost of the homeowner. 13% of the population in work in the industry, and in the eyes of the politician, these are valuable votes.
Despite concerning reports from across the nation highlighting deteriorated building standards and severe lack of rights to the consumer, not much has changed in regulation. After decades of this imbalance, the resulting damage can be seen across every state in the country – with the building industry expecting exclusive treatment, and getting it one way or the other through strong lobbying and politicians too afraid to utter a word against them. A recent example being Liberal MP Elise Archer flat out refusing to even consider an inquiry into Tasmania’s degraded building standards. She rejected the proposal even before the terms of reference have been tabled in Parliament!
Your Rights in Victoria – different, but is it any better?
Moving on to Victoria, it is a state where a buyer/homeowner has relatively more rights than in other parts of Australia. For example, since mid-2019, Victorian builders/developers can no longer abuse sunset clauses like they used to extensively. Similarly, unlike Tasmania, Home Warranty Insurance is mandatory in Victoria. So despite being relatively better placed than the rest of the country, what are your rights as a buyer building a new home?
You may have bought land to build on, or you may have entered an off-the-plan contract. If the product does not meet Australian Building Standards (a common issue due to shoddy practices currently allowed) and you are at a disagreement with the builder on that matter, who can help you? Even if you present an independent inspection report highlighting defects, there is nothing enforceable about it – the builder can simply ignore it with no legal reprimand.
Cracking slabs, sinking houses, bad plumbing and exposed wiring are an epidemic in the country now, with cases reported to the Victorian Administrative Tribunal (VCAT) soaring by 47 per cent in 2018-19. These poor standards have particularly been prevalent in housing estates and off-the-plan contracts, where builders and developers unashamedly exploit First Home Buyers’ and their lack of experience handling these matters.
If the builder does not agree to take corrective measures, you are left with taking the case to the Domestic Building Dispute Resolution Victoria (DBDRV). This is a 2 year wait. And reading through the DBDRV’s google reviews will tell you how effective they are once you get a mediation with them.
In the likely event the DBDRV’s mediation does not encourage a builder to take corrective action, you (the consumer) can go to VCAT for a hearing. This will be at least another 1 year wait. This is the only platform you can expect a fair hearing.
At this point, after at least 3 years of waiting and all the legal costs along the way, you may finally get justice through the courts.
This is the reality faced by homeowners. Outside of Victoria, the process is even worse.
Conclusion
The building industry is too valuable for politicians to even consider scrutiny. Years beyond the right time to address the sector, not a single politician is stepping up. Home-buyers should educate themselves on the risks involved with off-the-plan developments and any new home build.
Unfortunately, there is no light at the end of this tunnel.
