National

Builders face more scrutiny after Porter Davis collapse

By AAP Newswire

May 16, 2023

A file photo of a construction site — Construction companies will face charges if they fail to take out insurance on behalf of buyers. -AAP Image

Victoria's construction sector will be reformed after the collapse of Porter Davis caused chaos for buyers.

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The Victorian government will reform the Domestic Building Act and strengthen insurance requirements.

Under the changes, a new offence will be created for builders who fail to take out insurance on behalf of buyers with the Victorian Managed Insurance Authority.

About 560 Porter Davis clients were not covered by insurance despite paying the company a premium before it went into liquidation in late March.

The Victorian Building Authority and Consumer Affairs Victoria will also be reviewed.

Premier Daniel Andrews said Victoria's regulatory systems were no longer fit for purpose.

"These reforms are part of a comprehensive review to modernise Victoria's building system, delivering better protection for Victorians building a home, while providing clarity to the building industry," he said.

Anna Cronin has been appointed to replace Sue Eddy as VBA chief execute after she resigned suddenly last week, effective immediately.Â

By AAP Newswire

Australian Associated Press