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Industry Alert: Concerning increase in license lending

The VBA has seen an increase in complaints where it appears that the builder nominated on a building permit did not arrange, carry out or manage the building work authorised by that permit.

Some builders are allowing their building registration details and domestic building insurance to be used by an unregistered third party to arrange, carry out or manage the building work.

The builder nominated on a building permit is responsible for any building defects and compliance with enforcement actions instituted by the relevant building surveyor. They may also be liable for potential action at the Victorian Civil and Administrative Tribunal (VCAT), should a dispute remain unresolved.

Any disciplinary action by the VBA for proven contraventions of building legislation will be attributed to the builder named on the permit. This includes failure to comply with a VCAT determination where applicable.

Failure to comply with a dispute resolution order issued under the Domestic Building Contracts Act 1995, must result in a suspension of the builder’s registration.

It is an offence under section 246 of the Building Act 1993 to give false or misleading information to a building surveyor or any other person carrying out functions under this Act. If found to have given false or misleading information, penalties can reach $10,000 for an individual or $54,000 for a company.

Licence lending, which is knowingly allowing your registration or license to be used by another person, is a form of unprofessional conduct which undermines the regulation of building and will be the subject of disciplinary action where proven. This may include, but is not limited to, the cancellation of the builder’s registration and significant penalties.