This article is from the Australian Property Journal archive
THE Victorian government has abolished the mandatory commercial defects insurance, providing significant cost savings to commercial and high-rise apartment builders.
The Builders Collective of Australia (BWI) president Phil Dwyer said the BWI has been lobbying successive governments over the past nine years for the removal of both the mandatory insurances for builders.
“The removal of the commercial builders insurance is due to the fact it appears there have been no claims against this product. The CDI has been mandatory as a condition of registration for commercial builders and the removal will reduce administrative and premium costs, which will see significant savings to the commercial sector and more particularly for the high-rise builders,” he added.
Dwyer said although these reforms are a good start, the current domestic Builders Warranty Insurance continues to be controversial, secretive, and fails its intended purpose.
“The building industry and its consumers crave genuine consumer protection and a realistic management regime that will enhance industry and restore integrity and confidence but more importantly deliver the intended product and for that to happen the bureaucrats need to listen and work with the wider industry as we have the knowledge to achieve that outcome,” Dwyer added.
The abolishment of the commercial defect insurance is as part of 36 red tape reforms announced by acting premier and minister for state development Peter Ryan.
Ryan said currently commercial builders must have defects insurance as a condition of registration and this reform removes this requirement reducing insurance and administrative costs and recognising that commercial building owners have the capability to manage their own risks of building.
In total, eight reforms was made relating to the building industry, including metal roof plumbing, building complaints, wall heights, wall setbacks, testing of Geosynthetic products, caravan annex construction, building permit signing.
Ryan said there will be an increase in the acceptable maximum average height for walls constructed on or near a boundary without the need to apply for a council permit, saving builders and home-owners time and money
Property Review
