This report presents the outcomes and observations from the financial audits of the nine portfolio departments and the 201 associated entities that are not addressed in our other sector based reports, including the five Victorian alpine resorts.
In accordance with section 16(3) of the Audit Act 1994, a copy of this report was provided to the Victorian Building Authority, Building Practitioners Board, Department of Justice & Regulation (Consumer Affairs Victoria), Victorian Managed Insurance Authority, Department of Environment, Land, Water & Planning, Department of Treasury and Finance, and the Essential Services Commission.
Figure A1
Categories and numbers of building practitioners
|
Category |
Class description |
No. registered |
|---|---|---|
|
Domestic builder |
Domestic builder-unlimited (DB-U) May personally carry out, manage or arrange for sub‑contractors to carry out all components of domestic work. |
Domestic building insurance (DBI) is mandatory for domestic building works over $16 000. DBI is 'last resort' protection for the consumer because it only protects them when a builder fails to complete works to a satisfactory standard and the builder dies, disappears or becomes insolvent. The withdrawal of private insurers from the DBI market during 2009 and 2010 prompted government to direct the Victorian Managed Insurance Authority (VMIA) to provide DBI from the end of March 2010.
Consumer Affairs Victoria (CAV) manages key parts of Victoria's consumer protection framework for domestic building. It provides education and information, undertakes conciliation, compliance activities such as the Better Business Initiative and enforcement action under the Domestic Building Contracts Act 1995.
The Victorian Building Authority (VBA) monitors and prosecutes noncompliance with the Building Act 1993. Private and municipal building surveyors also play a key role in compliance. The Building Practitioner's Board (BPB) registers and disciplines practitioners. Consumer Affairs Victoria (CAV) educates building practitioners about their obligations under the Domestic Building Contracts Act 1995 and enforces this Act.
Domestic building is a significant area of economic activity. In 2013–14, over 101 000 permits were issued for building works in Victoria with an estimated value of more than $25.3 billion. Domestic building work made up around 82 per cent of all permits and accounted for half of this value.
Building or renovating a house is typically the single biggest investment an individual consumer will make in their lifetime. While most consumers do not experience significant issues and problems with their builder, a significant number do. Consumers may be ill-equipped to manage a building contract and resolve building construction issues. For those consumers that do experience problems, the impacts can be profound—ranging from significant additional costs and time delays to extreme frustration, stress and anxiety.
John Doyle Auditor-General |
Audit team Andrew Evans—Engagement Leader Dale Thistlethwaite—Team Leader Tony Brown—Manager-Manager Sophie Fisher—Analyst |
This report covers the results of the 2013 financial audits of 27 entities, comprising 14 technical and further education (TAFE) institutes and the 13 entities they control.
Historically, the results of audits of universities and TAFEs were found in one report. This year, however, for the first time the results are presented in separate reports—Technical and Further Education Institutes: Results of the 2013 Audits and Universities: Results of the 2013 Audits.