❓ A parliamentary question regarding consumer complaints against Capital Works Construction Pty Ltd and the government's response to protect homeowners affected by builder insolvency and prevent future occurrences.
AnsweredQoN 578Legislative Council
QuestionView source ↗
BUILDING COMMISSION — CAPITAL WORKS
CONSTRUCTION PTY LTD
578. Hon ALANNA CLOHESY to the
Minister for Commerce:
I refer to the many consumer complaints to the Building
Commission in relation to Capital Works Construction Pty Ltd. Now that another
building company has gone into administration, what is the government doing to —
(a) assist the victims to progress
their build with another builder;
(b) ensure that all victims have
their rights and entitlements met; and
(c) identify
current or potential risks of other risky or doubtful builders and act to
prevent this happening once again?
CONSTRUCTION PTY LTD
578. Hon ALANNA CLOHESY to the
Minister for Commerce:
I refer to the many consumer complaints to the Building
Commission in relation to Capital Works Construction Pty Ltd. Now that another
building company has gone into administration, what is the government doing to —
(a) assist the victims to progress
their build with another builder;
(b) ensure that all victims have
their rights and entitlements met; and
(c) identify
current or potential risks of other risky or doubtful builders and act to
prevent this happening once again?
AnswerView source ↗
I thank the honourable member for some notice of this
question.
(a)–(b) The member refers to another building company
that has gone into administration; I am unsure which company she is referring
to. However, in relation to Capital Works Construction Pty Ltd, I answer as
follows: in Western Australia, the Home Building Contracts Act 1991 establishes
an insurance scheme to protect home owners from situations in which a builder
is not able to complete home building work due to insolvency, death or the
disappearance of a builder. I am advised that QBE Insurance Group Limited,
Capital Works Construction Pty Ltd's insurer, has now contacted
affected consumers and is arranging the completion of their homes. The Building
Commission has published on its website advice for consumers on builder
insolvency.
(c) The
Building Commission monitors industry intelligence through complaints made, the
media, and liaison with home indemnity insurers, the consumer protection
division of the Department of Commerce and local governments. When the Building
Commission has evidence that a particular building contractor may be in
financial difficulty, an internal assessment group monitors the contractor and
coordinates responses from all parts of the agency. Whilst the legislative
regime has consumer safeguards, there is no foolproof system and consumers also
need to conduct their own due diligence inquiries prior to engaging a
prospective builder and to understand the contracts they enter. Builders, like
any other businesses, may fail for a variety of reasons, some of which may be
unforeseen—for example, a builder dying or disappearing.
question.
(a)–(b) The member refers to another building company
that has gone into administration; I am unsure which company she is referring
to. However, in relation to Capital Works Construction Pty Ltd, I answer as
follows: in Western Australia, the Home Building Contracts Act 1991 establishes
an insurance scheme to protect home owners from situations in which a builder
is not able to complete home building work due to insolvency, death or the
disappearance of a builder. I am advised that QBE Insurance Group Limited,
Capital Works Construction Pty Ltd's insurer, has now contacted
affected consumers and is arranging the completion of their homes. The Building
Commission has published on its website advice for consumers on builder
insolvency.
(c) The
Building Commission monitors industry intelligence through complaints made, the
media, and liaison with home indemnity insurers, the consumer protection
division of the Department of Commerce and local governments. When the Building
Commission has evidence that a particular building contractor may be in
financial difficulty, an internal assessment group monitors the contractor and
coordinates responses from all parts of the agency. Whilst the legislative
regime has consumer safeguards, there is no foolproof system and consumers also
need to conduct their own due diligence inquiries prior to engaging a
prospective builder and to understand the contracts they enter. Builders, like
any other businesses, may fail for a variety of reasons, some of which may be
unforeseen—for example, a builder dying or disappearing.
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