The Property Council of Australia has welcomed the recent agreement by commonwealth, state and territory building ministers on a national approach to implementing reforms which will lead to better enforcement and compliance with building standards and regulation.

Ministers have agreed to progress the Shergold Weir reforms through the Australian Building Codes Board (ABCB). The agreement was reached between the nation’s ministers responsible for the building industry at the Building Ministers Forum in Sydney this week.

The agreement means the ABCB will be expanded, better resourced, and force greater engagement from the building industry.

“This is a very welcome and important step towards addressing issues around building regulation compliance and enforcement at a national level,” said Ken Morrison, Chief Executive of the Property Council.

“We are pleased that ministers have listened to the concerns of the building, construction, insurance, and property industries about the inconsistent approach that has been taken to date, particularly on issues such as combustible cladding, as well as building standards and professional integrity,” Mr Morrison said.

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Property Council of Australia Ken Morrison. Source: Property Council of Australia Facebook.

“There is still a lot of hard work to be done – particularly around a consistent approach to addressing cladding issues and in resolving insurance problems – but this has been a big and welcome step forward today, and we congratulate the ministers on taking it,” Mr Morrison said.

At a glance:

• Ministers have agreed to progress the Shergold Weir reforms through the Australian Building Codes Board (ABCB). The agreement was reached between the nation’s ministers responsible for the building industry at the Building Ministers Forum in Sydney this week.
• The agreement means the ABCB will be expanded, better resourced, and force greater engagement from the building industry.
• Ms Brookfield said each state needs to take on board the recommendations of the Shergold-Weir report in a way that suits their existing regulatory frameworks.

Click here to read the full Shergold-Weir Report. 

The ABCB will prepare a national framework to guide the implementation of recommendations from the Shergold Weir Building Confidence report.

The Building Ministers Forum followed the Labor Government’s announcement of a $600 million combustible cladding rectification package this week.

Victoria Minister for Planning Richard Wynne said, “We’re working with the rest of the country to make sure people can have faith in our building system – everyone has a right to buy a property and know it’s been safely built."

"Housing and apartment construction is a significant contributor to Victoria’s workforce, and market confidence is essential for both our economy and the safety and wellbeing of residents," Mr Wynne said.

Master Builders Australia CEO Denita Wawn has also welcomed the agreement and said it's a breakthrough that will lead to improved enforcement and compliance with building regulations and standards throughout the building supply chain.

“It’s important that the ministers have listened to calls from the building and property industries about the need for state and territory governments to get on implementing these vital reforms. However, it’s important that they do this with urgency, and Master Builders will be calling for a timetable for implementation to be released sooner rather than later.  

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Master Builders Australia CEO Denita Wawn. Source: Master Builders.

“Master Builders also welcomes the decision to boost the capacity of the ABCB, including through greater building industry representation and the secondment of industry expertise, to respond to the current challenges in the building and property industries,” Ms Wawn said.

Housing Industry Association (HIA) Chief Executive Industry Policy, Kristin Brookfield added that each state needs to take on board the recommendations of the Shergold-Weir report in a way that suits their existing regulatory frameworks, it is important that the result after implementation will essentially be to deliver a consistent approach to the way buildings are approved, to the way building professionals are held responsible and to providing greater certainty for building owners.

“HIA called on Ministers to include in this approach consideration of the current disjointed professional indemnity insurance arrangements with a view to ensuring that once implemented building professionals can move back to a situation where they can obtain affordable and appropriate insurance coverage.

“National guidance is needed to limit the introduction of exclusions which go beyond combustible cladding," she said. 

Click here for more information on the Victorian Cladding Taskforce.

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