i-law

International Construction Law Review

THE FORGOTTEN MANY: ADDRESSING GAPS IN VICTORIA’S PLANNED CONSTRUCTION INDUSTRY REFORM

MATTHEW HARRIS*

Independent Researcher

ABSTRACT

The Victorian construction industry has long struggled with building defects, exacerbated by lax regulations, and weakened consumer protections. While recent reforms aim to address these concerns, they remain forward focused, offering no recourse for homeowners already affected. These issues are not unique to Victoria. This paper argues that Victoria should follow New South Wales in implementing retrospective reforms to ensure accountability and protect already-affected homeowners. Without retrospective application, Victoria’s reforms risk falling short. Ultimately, it advocates for a legal framework that upholds existing homeowner rights and strengthens consumer confidence in the construction sector through retrospective reform efforts. This paper has been submitted to the Society of Construction Law Australia in respect of the Brooking Prize.

1. INTRODUCTION

The issue of defective construction has already been widely examined in Australia and internationally, yet affected property owners in Victoria remain without a clear legal pathway to compensation. Despite increasing legislative and regulatory responses, subsequent purchasers of defective properties continue to face significant legal uncertainty regarding their ability to recover losses.
As early as 2008, Dr Philip Chan identified this problem, questioning whether courts or legislators would act to remedy it: “How much longer must the parties wait for … a commercially acceptable solution?”1 This question remains unanswered in Victoria. Unlike NSW – which has introduced retrospective legislative protections – Victoria has yet to implement comparable reforms, leaving affected homeowners reliant on a curtailed common law,2 as well as limited contractual warranties and statutory protections that often fall short.

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