5th February, 2014

Red tape reforms reduce building compliance costs

Tradesmen working on commercial building sites may soon experience the benefits of recently announced reforms designed to cut construction red tape and compliance costs.

In a January 8 media release, Acting Premier and Minister for State Development Peter Ryan revealed 36 red tape reforms that are expected to boost productivity for builders and businesses in Victoria.

“Within the building industry, there will be an increase in the acceptable maximum average height for walls constructed on or near a boundary without the need to apply for a council permit, saving builders and home-owners time and money,” Mr Ryan said.

Additionally, commercial tradesmen will no longer be required to hold Building Defects Insurance, which will affect the amount of construction insurance cover businesses and individuals are recommended to carry.

Further reforms will also allow registered builders to construct metal roofs, a process that was previously limited to plumbers.

Mr Ryan said the reforms were accepted following an extensive consultation period by Red Tape Commissioner John Lloyd.

“Mr Lloyd met with 25 different associations as well as a significant number of individual businesses, before putting his reform proposals forward,” Mr Ryan said.

Treasurer Michael O’Brien said 22 reforms would be implemented by July 2014, in time to meet the Government’s 25 per cent red tape reduction target commitment. The other 15 are expected to be introduced in the near future.

Given the significant litigious nature of the commercial construction industry, it is important for tradesmen working within this sector across all states and territories to completely understand any changes to legislation and red tape conditions.

This includes any recommended or legally compulsory tradesman insurance cover required by individuals and businesses within the construction industry.

To ensure you receive the right policy to protect your business against potential legal claims and changes in regulations, speak with Trade Insurance today.

Author: Murray Bruce