Personal liability for building directors
The Building and Plumbing Administration and Enforcement Bill 2026 and the potential for personal liability is here!
Some very significant changes are proposed for domestic building in Victoria by way of the new bill including under Chapter 6 which outlines enforcement, remedies, powers and investigation.
Materially this includes new joint and several liability of directors of bodies corporates in domestic building disputes.
If you are a builder or plumber or other caught by the legislation you need to be aware of these very ‘personal’ changes.
This includes clause 318 and clause 319 of the Bill which specifically authorise the Building and Plumbing Commission to take any enforcement action against a director of body corporate if a direction to fix for a rectification order has been contravened.
We all knew, rectification orders would be a BIG change, but this is VERY BIG. Again, it isn’t law…yet, and it is still open as to how such laws will be enforced but…
This is obviously a very significant development.
We have literally gone from the wild west in Victoria’s domestic building industry (noting many builders are doing the right thing) to what now looks like a total dismissal of the corporate veil between a corporation and its directors.
I think we need some real detail as to how this legislation, if and when passed, will be enforced.
I predict, and I think few people will debate with me, that one things is for sure - a LOT of legal ink will be spilled on this issue!
As the debate the heats up in the coming days and weeks Brockhill & Usherwood Lawyers will keep you updated with the proposed changes.
I EMPHASISE builders need to start thinking about increased contractual protection and insurance.
This article is a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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