Issue Date:  -  Friday, 28 April 2006

Have your say on building review

Consumer Protection wants to hear from consumers about their experiences dealing with homebuilders and building contracts as part of a major review of legislation.

Consumer Protection Commissioner Patrick Walker said the building boom has led to an increase in complaints against builders but more than one third of homeowners cannot access the Building Disputes Tribunal for help.

Mr Walker said most of the complaints from homeowners were about workmanship, delays and contractual disputes.

The Building Disputes Tribunal anticipates receiving about 1000 complaints this financial year including 200 about contractual matters. Contractual matters include delays, cost increases and variations.

In 2004-2005, the Tribunal received 785 complaints including 155 about contracts.

But Mr Walker said homeowners could only lodge complaints over contractual matters with the Building Disputes Tribunal if the home building contract was less than $200,000. There is no limit for complaints about workmanship.

“Building costs have increased substantially since the upper limit was struck in 1991,” Mr Walker said. “It is now estimated that 38 per cent of home building contracts are valued at more than $200,000 with the average contract price being $343,000.

“This means that more than one in three homeowners cannot access the consumer protection measures under the Home Building Contracts Act.”

Mr Walker said one of the major issues the review will look at is whether the upper limit on contracts should be increased to allow these cases to be heard by the Tribunal.

The review covers legislation relating to homebuilders, painters and home building contracts. The first issues paper on the Home Building Contracts Act was released in January.
         
“Some builders argue that the upper limit should not be increased because the construction of higher cost houses is a different “ball game” to lower cost project homes,” Mr Walker said. “But we want to hear what consumers say about this.
          
“We also want to hear about their experiences with builders, contracts, progress payments, deposits, variations and workmanship as well as the Tribunal.”

Consumers willing to participate in focus groups can email buildingreview@docep.wa.gov.au or telephone 9282 0721. Further information about the General Review of Building Legislation is available on the Department’s website at www.docep.wa.gov.au.

Consumer Protection is also interested in the views of regional consumers who may face particular problems with builders because of location and distance.

Homeowners who have problems with their builder can contact the Building Disputes Tribunal on 9476 1222.

Media Contact:   

Gay McNamara       
9282 0679        
0413 032 584