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Industry News, Latest News, Professional Services, Victoria

VIC Gov to chase dodgy builders through the courts

Dodgy builders that have installed combustible cladding onto apartments will soon be chased through the courts as new legislation is introduced into the Victorian Parliament.

The Building Amendment (Cladding Rectification) Bill 2019 gives the State Government the power to pursue wrongdoers through the courts in cases where the Victorian Government pays for the rectification costs.

It aims to give the Victorian Government the ability to target building practitioners so that victims won’t have to spend their own time and money keeping dodgy operators accountable.

Any financial returns will be reinvested into the $600 million cladding rectification program, administered by the new body Cladding Safety Victoria.

The new laws will still allow apartment owners affected by combustible cladding to take legal action against building practitioners for other building defects.

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It also introduces a new building levy, first announced in July, which will be used to find $300 million of the rectification program.

The levy applies to new permits for multi-storey buildings valued at more than $800,000, excluding single dwellings, developments in regional Victoria, schools and hospitals. Other projects such as social housing may also be exempt.

Rectification is expected to take five years to complete.

The Victorian Building Authority has suspended two builders and surveyors over the installation of non-compliant cladding and has issued nine show cause notices.

Victorian Planning Minister Richard Wynne said the laws will save owners time, hassle and expense.

“These apartment owners find themselves in this situation through no fault of their own. They shouldn’t have to deal with the cost and stress that court action can mean – so we’re pursuing wrongdoers on their behalf,” he said.

“Combustible cladding is a national problem and we’re disappointed the Commonwealth Government has decided not to be part of the solution here in Victoria.”

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