Queensland Government backs building regulator reforms

The Queensland Government has accepted recommendations that aim to improve the performance of the state building and construction industry regulator, while also underscoring its disaster resilience role.

The Queensland Building and Construction Commission (QBCC) Governance Review, completed by Jim Varghese, outlines proposals to refocus the organisation on its licensing and compliance regulatory role and to improve transparency.

Recommendations also include that QBCC develop a communication strategy to inform property owners about building resilience through design and construction practices, and that it reinforces best practice regulation through contemporary building guidelines and collaboration with industry.

QBCC should support a separate independent review underway into the role of developers, while administration of the Queensland Home Warranty Scheme (QHWS) should be separated from the regulator’s mandate, it says.

The commission currently collects premiums for the home warranty insurance scheme and investigates complaints that could result in a claim being made through the scheme, leading to perceptions of bias or a conflict of interest

Mr Varghese proposes transferring administration of the home warranty scheme – which is being separately reviewed – to another department or agency, such as Treasury. The QBCC would then be able to investigate complaints and charge a service fee, or be remunerated for services undertaken for the scheme.

QBCC processed 168,468 insurance policies for residential construction work last financial year and approved $31.3 million in claims costs under the scheme, comprising $16.6 million for defects, $9.9 million for non-completion and $4.8 million for subsidence.

Queensland Public Works and Procurement Minister Mick de Brenni says all the recommendations are either supported or supported in principle, but more analysis is needed in some cases on the best approach.

The Insurance Council of Australia (ICA) says QBCC, as the regulator of the third-largest contributor to the Queensland economy, has an integral role to play in improving the resilience of the state’s homes to worsening extreme weather.

“ICA and insurers are pleased with the recommendations of the independent review as it drives home the urgent need to improve resilience for homes, which will directly impact on premiums for at-risk communities,” CEO Andrew Hall said.