THE building industry has been in decline for more than two decades driven by a product introduced in 2003 known generally as Builders Warranty Insurance (BWI) and its unintended consequences or should I say intended.
The BWI system as is basically manages the industry and provides consumer protection on a last resort basis which means a consumer can only make a claim if their builder is dead, missing or insolvent and even then, a claim may not work.
Most consumers don’t even know what last resort means until they try and make a claim which I find misleading and discriminatory.
Its laughable when you consider BWI is there to provide protection for a consumer’s largest purchase of their lifetime in most cases.
How on earth was this product introduced and why haven’t governments removed it considering the tens of thousands consumer complaints.
Just shows the power of some industry bodies who see a financial bottom line far more important than what’s good for industry and the consumers we serve and as builders rely on for our financial existence.
How fortunate are we to have Anna Cronin (VBA CEO) and Sonya Kilkenny (Planning Minister) who have shown the strength and opened the door to a brighter future.
It appears a new entity will be established to be known as the Building and Plumbing Commission, and it will have further and increased powers that will benefit both consumers and builders alike and operate as a genuine one stop shop.
As builders none of us are keen on further red tape and regulation however the conduct of some over past years now demands stronger systems to be put in place to deal with those that think they can outsmart the system and cause havoc to consumers with only their personal financial gain in mind.
A regulatory body that operates as a one stop shop benefits all in the industry as it will streamline the building process while giving confidence to both the building consumer and the builder who builds the home.
Most builders do the right thing and have nothing to fear from stronger regulations and compliance as there will be other benefits that outweigh any disadvantage.
I believe the whole of industry can look forward to a brighter future.
By Phil Dwyer, President of the Builders Collective Australia. For decades he has advocated for both consumers and builders.
