Victoria’s Building and Plumbing Commission (BPC) has been given new powers to order builders, subcontractors and developers to fix defective work up to 10 years after a buyer has moved in.
The power applies where building work poses a clear safety risk and other enforcement options haven’t resolved the problem. It also applies retrospectively, meaning work completed before the powers took effect could still be subject to an order.
The change sits alongside two other reforms agents should be across when advising clients on new builds and off-the-plan purchases.
The first is the First Resort Home Warranty Insurance Scheme, which now covers anyone entering a domestic building contract and it covers lost deposits, incomplete work and defective work, and the BPC is the sole provider, removing the option for builders to shop around for cheaper, lower-cover policies.
“Too many families have been left in serious debt by dodgy building work,” said the Minister for Housing and Building Nick Staikos.
According to the BPC, more than 1,300 Notices of Cover were issued in the scheme’s first week, covering more than $445 million worth of building contracts.
Nearly 600 of those were for new single dwelling construction, with Sunshine North, Tarneit, Mickleham, Deanside and Winter Valley recording the highest volumes.
The second reform targets apartment buyers. From 1 July 2027, developers of apartment buildings will need to lodge a bond with the BPC to cover the cost of fixing defective work. The government says defects in apartment buildings currently cost Victorians an estimated $453 million a year.
Member for Laverton Sarah Connolly linked the changes to growth in her electorate.
“Wyndham is one of the fastest-growing areas in Victoria – families building their first home deserve to know it’ll be built right, or fixed if it’s not.”
For agents working new estates or off-the-plan apartment sales, these changes give buyers additional protections to point to during the purchase decision, particularly around deposit security and post-settlement defect remediation.
The apartment bond scheme in particular is worth flagging to buyers weighing up off-the-plan purchases ahead of its mid-2027 start.