Victorian Auditor-General's Office

4 Domestic building insurance

At a glance

Background

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.

2 Building practitioner registration, discipline and compliance monitoring

At a glance

Background

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.

1 Background

1.1 Introduction

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.

Audit Summary

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.

Audit Summary

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.

ICT Disaster Recovery Planning

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As computer systems become increasingly critical to the operations of government agencies, effective planning and processes to manage disruptions are vital for ensuring Victorians can continue to access public services. In this audit, we look at whether the ICT systems in Victorian Government departments and Victoria Police can be effectively recovered in the event of a disaster.

Assessing Benefits from the Regional Rail Link Project

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In this audit, we assess the benefits of the $3.65 billion regional rail link, which opened on 21 June 2015. The project involved construction of additional tracks between Southern Cross Station and West Werribee, two new stations at Wyndham Vale and Tarneit, upgrades to Footscray, West Footscray and Sunshine stations, and signalling upgrades along the whole corridor.
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