Victoria’s new Building and Plumbing Commission has begun operations, as the state moves to plug gaps in construction industry regulation. 

The commission assumes the functions of the Victorian Building Authority, the domestic building insurance arm of the Victorian Managed Insurance Authority, and Domestic Building Dispute Resolution Victoria. 

“The establishment of the BPC is just the beginning of a new chapter, but it’s a huge step forward,” said Anna Cronin, who has been appointed CEO and commissioner.

“Our new powers will be a game-changer for consumers. We at the BPC will be working hard every single day to help restore confidence, protect consumers, and educate and support practitioners.”  

Under forthcoming reforms, domestic building insurance will be expanded so a claim can be made against any builder when non-compliant or defective work is identified and the builder refuses to fix it.  

Presently, claims can be made only when the builder becomes insolvent, dies or disappears.    

Under the Buyer Protections Bill, the regulator will be allowed to act against a builder after the homeowner has moved in and to “order builders back”.  

A developer bond for buildings four storeys and above will ensure funds are available to quickly rectify non-compliance post-occupancy.    

Developers of apartment buildings above three storeys will have to notify the BPC before a site is occupied, to determine whether an inspection is needed before an occupancy permit. 

The proposed regulations will be developed through consultation with consumer groups and industry.