Building remediation policy

Purpose

This Policy is intended to assist the building industry and consumers to understand the role and powers of the Building and Plumbing Commission (BPC) to support and facilitate the remediation (e.g. fixing or completing) of non-compliant, defective or incomplete building and plumbing work.

This Policy is to be read in conjunction with the BPC’s other policies available on its website.

Role in the building regulatory system

The BPC regulates the building industry to promote the prevention and reduction of harm to consumers and the public. Effective industry regulation enables consumers to enjoy a safe and quality built environment. BPC seeks to achieve this by:

• monitoring industry compliance with building standards through proactive inspections and audits
• applying its risk-based frameworks to assess and respond to reports from industry and consumers about incomplete, non-compliant work or defective work
• using enforcement powers when appropriate to achieve compliance with relevant standards.

The BPC operates alongside other bodies with statutory duties and regulatory responsibilities. Its approach to the remediation of building work accounts for the:

• engagement of building and plumbing practitioners in responding to concerns and voluntarily remediating issues
• primary role of other parties in the regulatory system, who have frontline roles in ensuring compliance
• point in time in which building work issues are identified, e.g. before or after occupancy.

Role in building remediation

The Building Act 1993 provides the BPC with wide discretion to respond to non-compliant, defective or incomplete building work.

Statutory remedial notices, orders and directions are legal directives to take actions, stop activities, or carry out remediation works. They are used to compel the recipient to comply with the actions outlined by the BPC.

Enforcement action can ensure that there is a formal record that the BPC has required action to remedy an issue, and hold notice recipients to a timeframe to comply with requirements.

Remedial tools may be used in parallel with discipline and sanctions to deal with non-compliance where appropriate. The BPC takes failure to comply with remedial tools seriously and may take action such as suspending a practitioner’s registration, taking other disciplinary action or commencing a criminal prosecution in response to non-compliance.

The BPC’s approach to building remediation reflects its role in relation to the other regulators in the building regulatory system (discussed further at section 4), and its consumer complaint and dispute resolution functions.

Role of other parties

Effective building remediation will require cooperation between the BPC, Relevant Building Surveyor (RBS), Municipal Building Surveyors (MBS), building and plumbing practitioners, other registered or licensed tradespersons, developers and consumers.

The BPC expects practitioners, developers and consumers to:

• engage honestly and constructively in relation to alleged issues
• provide relevant information and evidence in a timely manner when requested to do so
  
• attend an inspection for the purposes of assessment of any alleged issues when requested to do so.

For building work that requires a building permit, the RBS plays a central regulatory role. The RBS ensures that building work complies with applicable standards, primarily through assessing building designs, conducting mandatory inspections and issuing notices, orders or directions when non-compliant work is identified. The RBS is the primary frontline regulatory role concerned with the remedy of non-compliant building work during construction.

Local governments, through their MBS, have a role in ensuring the safety and monitoring the compliance of buildings within their municipality. MBS have the authority to inspect buildings for compliance and issue building notices and building orders to address non-compliant work post occupancy. They can also issue emergency orders where there is a danger to life or property arising from the condition or use of a building.

The BPC expects that RBS’ and MBS’ will use their powers to resolve matters before BPC intervention. The BPC’s use of remedial tools is intended to:

• support and complement the functions of frontline regulators
• intervene in cases of priority harm, primarily to resolve significant non-compliant work
• act where there are concerns that another party is not adequately discharging their role
• protect the integrity of the regulatory system.

Principles of building remediation

The BPC may consider using its tools and powers to:

• directly require the remediation of building work
• ensure other parties perform their regulatory role
• formalise commitments by a builder to fix the problem.

Additionally, in line with its risk-based approach, the BPC may decide to:

• not take action to compel the remediation of building work, such as where the matter does not meet its risk-based criteria for a direct response, and an educational approach is preferred
• issue a caution to a builder to put them on notice about the apparent non-compliance, to ensure future work by that person is of an appropriate standard
• take disciplinary or prosecution action in response to the non-compliance
• suspend a practitioner’s registration where such action to limit that person’s activities are in the public interest, in place of remediation
• encourage parties to use available dispute resolution services
• recognise that a matter may need to be addressed through civil action, such as where compensation is sought.

Whilst recognising the frontline role of others in overseeing building work, there are many situations where the BPC might intervene. The following principles guide its decision-making:

Pathways for remediation of building work

The BPC may become aware of non-compliant, defective or incomplete work in a number of ways, including by direct consumer complaint, as a result of BPC’s pro-active inspection activities, or via referral from another agency or regulator. The BPC performs its regulatory functions in a risk-based manner, prioritising efforts on issues of the greatest impact.

There are a range of mechanisms available to consumers to address incomplete, non-compliant or defective building work. When issues occur with building work, the BPC will expect consumers to:

• (a) raise issues directly with their builder or plumber as soon as possible upon becoming aware of the issue
• (b) clearly communicate the relevant details of the matters giving rise to the dispute with their builder or plumber
• (c) give their builder or plumber a reasonable opportunity to address the work issues that are the subject of the dispute.

If the issue cannot be resolved, consumers may contact the BPC for assistance.

Where the BPC becomes aware of building work that may be non-compliant, defective or incomplete, prior to considering any regulatory action, the BPC may:

• encourage the consumer to raise the issue with their builder to seek a resolution
• request relevant information from the property owner, any relevant practitioner, RBS or MBS. The BPC may also compel the production of information in certain circumstances
• consider any available inspection or expert reports, including reports from third parties
• consider any previous actions of the RBS or MBS
• undertake inspections or investigation activities to assess any alleged incomplete, defective or non-compliant building or plumbing work.
• consider information reported or provided to the BPC in its capacity as the insurer for domestic building work or information appropriately shared following dispute resolution processes.
• encourage parties to participate in the BPC’s dispute resolution service.

Where the BPC considers an inspection is required, the BPC might only inspect non-compliant or defective work that meet BPC’s risk thresholds or are otherwise considered serious.

The BPC may choose to take no action in circumstances where the complaint or issue does not meet BPC’s thresholds that warrant a regulatory response.

The BPC will always determine each case on its merits.

The BPC’s dispute resolution service

Where there is a dispute regarding domestic building work, a mutually agreed outcome will often be the most efficient and cost-effective pathway to a resolution.

The BPC administers a free domestic building dispute resolution service to support consumers and practitioners reach an agreed outcome through conciliation. If conciliation does not resolve the dispute, or partially resolves the dispute, a Dispute Resolution Order may be issued, where appropriate to do so, by the Chief Dispute Resolution Officer.

Participating in the BPCs dispute resolution process is a mandatory step before consumers can progress their unresolved matters to the Victorian Civil and Administrative Tribunal.

BPC will refrain from taking action where parties are in active dispute resolution processes to ensure any ongoing dispute resolution processes are not impacted.

Access to Domestic Building Insurance or First-resort Home Warranty Insurance

Consumers impacted by non-compliant, defective or incomplete domestic building work may have access to either Domestic Building Insurance or First-resort Home Warranty Insurance.

Domestic Building Insurance will apply to most homes up to three stories constructed before 1 July 2026, and will be available where the builder has died, has disappeared or is insolvent. For policies issued on or after 1 July 2015, policyholders can also make a claim where a builder has failed to comply with a Tribunal or Court Order.

The First-resort Home Warranty Scheme is statutory insurance administered by the BPC that applies to homes up to three stories where the relevant domestic building contract was entered on or after 1 July 2026. The scheme will respond at first instance to non-compliant, defective or incomplete building work within policy limits as set out in the Building Act and Regulations.

Under the Building Act, the BPC must consider whether to issue a rectification order requiring the rectification or completion of the domestic building work before determining a First-resort Home Warranty Scheme claim.

Remedial powers relevant to building work

In some circumstances, the BPC may consider use of a regulatory tool appropriate in response to non-compliant, defective or incomplete work. The BPC prioritises consideration of its regulatory tools in line with the principles set out at Part 5 of this policy.

The most commonly relevant tools include:

BPC’s approach to the use of remedial powers is described in BPC’s Remedial Powers Policy. The Remedial Powers Policy also describes other tools that might be utilised to address non-compliant, defective of incomplete building work. BPC’s choice of compliance and enforcement response will be considered on a case-by-case basis.