Settlement terms with the Building and Plumbing Commission

Now that the VMIA, DBDRV and VBA are all the BPC… are you still with me on all the acronyms?

For those in the building game, you know what I mean. Basically, we’ve got one super dooper regulator and that’s also an insurer!

As an insurance lawyer this piqued my interest as I’ve not dealt with this before even having worked in multiple jurisdictions.

So, why do I hype on about this?

Here’s an initial consideration, the BPC when it settles domestic building warranty insurance claims will now enter a deed or terms of release with an insured.

BPC as super regulator as one party, homeowner is insured as the other party.

And so what? Insurers enter releases every day when they pay settlement sums under an insurance policy.

But those are just insurers and not also a regulator who has many functions and other functions that may continue to relate to the regulator. Say, there may be prosecution of a building practitioner or other complaints about a property.

My mind boggles at the implications…

Think about it, when you accept a settlement sum from a commercial insurer and you ‘release and forever discharge’ it, you are saying I will do no more, no further claims related to the substance of the claim or Property etc…etc

But that’s different when you settle with a mega regulator.

You may seek to assist in the prosecution of a builder or raise other complaints or claims about plumbing or other issues related to the substance of the dispute with the regulator for a different purpose.

The building and plumbing commission has a very, very significant role, it also has a responsibility to manage that role and ensure protection for consumers.

You see, protecting consumers on one hand and settling as a defendant insurer on the other hand are totally different hats.

I would love to see the building and plumbing commission issue a policy on managing potential conflicts. Sharing of information etc.

This article is a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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• building law