Toni Buti and Matt Moran pressconference qat a building site in Wembley.
UPDATE: The WA Government is poised to introduce crucial reforms to home building contract laws that will protect consumers in disputes involving projects over $500,000. Commerce Minister Tony Buti announced these changes are in response to significant consumer feedback and will be detailed in a consultation paper expected early next year.
These consumer-friendly measures come at a critical time, as many homeowners have expressed feeling vulnerable in disputes with builders. The proposed reforms aim to address systemic issues within the industry, which has been plagued by unregulated practices. The West Australian recently highlighted the urgent need for action, citing the “cowboy” culture affecting the sector.
Minister Buti revealed that a survey involving 568 consumers and 172 industry stakeholders provided valuable insights. “I look forward to presenting reform options in the new year,” Buti stated, underscoring the Cook Government’s commitment to enhancing building regulations.
Key findings from the survey included widespread complaints about the current cap on contract sums eligible for regulatory assistance. Many consumers voiced concerns, with one stating, “We are not protected for our build over $500,000. We are basically left to stand on our own and to fight the builder with high legal costs.” This sentiment reflects the urgent need for better protections for homeowners making some of the largest financial commitments of their lives.
Additionally, builders have called for clarity regarding price increases under the Home Building Contracts Act. Current regulations stipulate that if building approvals are not secured within 45 days—often due to factors outside the builder’s control—they may raise contract prices. One builder noted, “In the current home building environment, a 45-working day timeframe is unrealistic,” highlighting the variability in processing times across local governments.
The survey also emphasized the need for early mediation by the Building Commissioner to resolve disputes efficiently, addressing both contractual issues and defect complaints. A spokesperson mentioned, “Recent challenges experienced by consumers and builders highlight the need for clearer regulation and stronger, earlier intervention powers.”
Minister Buti expressed gratitude to participants for their real-life insights, stating, “These experiences will help shape reforms that balance protections for homeowners and requirements for industry.” He reiterated the importance of effective legislation to instill confidence in both parties entering contracts for new homes or renovations.
In a significant move earlier this year, Buti announced plans to strengthen the enforcement powers of building regulators to better scrutinize financially troubled builders. Legislative changes are underway to equip the Building Services Board and Building Commissioner with enhanced investigatory powers, enabling them to intervene early and protect consumers more effectively.
A Consultation Paper outlining the proposed reforms is set to be released in early 2024, allowing for broader public comment and engagement. As the WA Government takes these vital steps, homeowners and builders alike are urged to stay informed about these upcoming changes that aim to enhance consumer protection in the home building industry.
The urgency behind these reforms cannot be overstated, as the housing market faces increasing pressures and challenges. Stakeholders are watching closely for the outcomes of this initiative, which has the potential to reshape the landscape of home building contracts in Western Australia.
