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The Western Australian government has announced a review of its home building contract laws to strengthen consumer protections, following a surge in legal actions involving the state builders.
The Cook government has announced a review into its home building contract legislation to modernise regulations and give the state watchdog more power to intervene early in building issues.
The review aims to protect Western Australian home owners further when renovating their properties and to increase the public’s confidence in builders and suppliers.
Western Australian Commerce Minister, Dr Tony Buti, said that consumer and industry confidence were essential to continuing the expansion of the state’s housing market.
“Building or renovating a home is one of the biggest investments we make. Home owners should have confidence in the builders they engage and the laws governing home building contracts,” Buti said.
The review followed a surge in legal action targeting builders after consumers were left stranded for cash in either an unfinished or defective property.
Recently, three Western Australian building industry operators have been fined for breaching building laws, including misusing credentials, undertaking unregistered work, and asking for an illegal deposit nearly 10 times the legal limit.
Building and Energy Western Australia said that the recent cases have highlighted the need for a modernised and more accessible regulatory framework.
To ensure the state regulators can intervene earlier and better protect consumers and builders, the Western Australian government has instigated a review of its home building contract regulation to be led by Hon Dan Caddy MLC.
The review, along with industry feedback, will result in a bill that grants the Building Services Board and the Building Commissioner more powers to investigate financially troubled builders and impose conditions or cancel their registration.
“Strengthened powers to ensure registered builders comply with their financial obligations will help reduce disputes and delays, while allowing regulators to more closely monitor builders and intervene where necessary,” Buti said.
“To ensure home building contract laws keep pace with changes and challenges in the sector, stakeholders will have the chance to provide feedback during the review,” he concluded.
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