In October 2024, the Victorian Government announced that it will abolish the Victorian Building Authority (VBA) and replace it with the Building and Plumbing Commission (BPC), a new regulatory body with broader powers.
What is the Building and Plumbing Commission?
The BPC is intended to unify all aspects of building quality control, including regulation, insurance, and dispute resolution. It combines the functions of the following existing building authorities:
- VBA’s oversight of building practitioners’ registration and enforcement actions;
- Victorian Managed Insurance Authority’s provision of domestic building insurance; and
- Domestic Building Dispute Resolution Victoria’s dispute resolution services.
The BPC’s powers
The BPC’s new powers and responsibilities include:
- Requiring developers of apartment buildings of a rise above three storeys to notify the regulator before a building is occupied so that a final inspection can be conducted;
- Requiring developers of mid to high-rise apartment buildings to provide a strata bond to cover the cost of fixing defective works after the occupancy permit is issued;
- Rectification order power which allows the BPC to act against a builder after the occupancy permit is issued; and
- Expanding domestic building insurance to cover situations where a builder fails to comply with the new rectification order, such that builders no longer need to become insolvent, disappear, or die before a claim can be made.
Commencement
Legislation to establish the BPC and its new powers will be introduced early this year, with the regulator expected to be formed in mid-2025. Functions will be progressively incorporated into the BPC, with updates available on the VBA’s website.