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Victoria’s building industry is a significant component of the
state’s economy, employing almost 7 per cent of the work force and
generating over $24 billion in domestic and commercial building
work in 2010–11. The audit examined how effective the
building permit system is in providing assurance that approved
building works meet the required building and safety standards.
Specifically, the audit examined how effectively the Building
Commission regulates the activities of municipal and private
building surveyors and councils enforce compliance with building
permits within their municipalities.
The audit found the Building Commission cannot demonstrate that
the building permit system is working effectively or that building
surveyors are effectively discharging their role to uphold and
enforce minimum building and safety standards.
Ninety-six per cent of permits examined did not comply with
minimum statutory building and safety standards. Instead, our
results have revealed a system marked by confusion and inadequate
practice, including lack of transparency and accountability for
decisions made.
In the absence of leadership, guidance and rigorous scrutiny
from the commission, councils have adopted a largely reactive
approach to enforcing the Building Act 1993 that offers
little assurance of compliance within their municipalities.
Consequently, there is little assurance that surveyors are
carrying out their work competently, that the Building Act
1993 is being complied with, and the risk of injury or damage
to any person is being minimised.
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