Victoria will introduce new building laws that put company directors personally on the hook for substandard construction work. Speak to a construction lawyer who can help them navigate these changes. The reforms aim to protect homeowners, but they also require builders and managers to stay on top of compliance.
Key changes:
- Personal liability for directors: If a company delivers defective work, regulators can now pursue directors directly.
- The new Building and Plumbing Commission (‘BPC’) can act while work is ongoing, issue civil penalties, broaden infringement notices, and hold directors accountable.
- Anti-phoenixing measures: Directors cannot avoid responsibility by dissolving a company and restarting under a new name.
Other changes:
- The government will scrap the cladding levy, saving roughly $4,000 per two-bedroom apartment, lowering construction costs for new builds.
- These reforms build on previous measures, like allowing regulators to order fixes for defective work even after families have moved in and letting homeowners pursue builders without going to court.
What this means for your business:
- Ensure all work meets regulatory and safety standards, shortcuts can now have personal consequences.
- Keep thorough records of contracts, inspections, and compliance checks.
Builders who maintain quality, safety, and compliance will benefit. Those who don’t risk personal liability under the new legislation. Speak to a construction lawyer about what these changes mean for your business.
LGM Advisors can provide advice and representation on matters relating to construction law in Australia. In the event of any query, please do not hesitate to contact our office on contact@lgmadvisors.com.au.
