Failure to Act on Building Quality Costs ACT Community $1 Billion

Posted 19 October 2018

Failure to Act on Building Quality Costs ACT Community $1 Billion

A report from the University of NSW released by the ACT Committee inquiring into ACT building quality estimates that for every $100 million spent on construction, over $5 million is wasted as a result of poor building quality.

Master Builders ACT has revealed that if this figure was applied to the value of construction work completed in the ACT since 2010, the cost of poor building quality has been $995 million.

Master Builders ACT CEO, Michael Hopkins said, “According to ABS data there has been $19.9 billion worth of construction works completed in the ACT since 2010. Based on UNSW research, the ACT Government’s failure to act has cost the ACT community close to $1 billion.”

“Poor building quality has a significant financial cost on consumers, industry and governments, however the financial impact does not factor in the stress on home owners, and the commercial impact on subcontractors and small businesses who can’t compete with operators who cut corners on quality and safety”, said Mr Hopkins.

The MBA has consulted widely with our members, community groups and other industry professionals to identify solutions to the ACT’s building quality problem.

Mr Hopkins said, “There is wide spread support amongst key stakeholders for a range of solutions to fix the ACT’s building quality problem.”

“The MBA is calling for the introduction of engineer, building designer and trade contractor registration and licensing, mandated continuing professional development training, and minimum design and documentation reforms to be introduced as a priority”, said Mr Hopkins.

Mr Hopkins said, “The ACT Government should also ensure existing building laws are enforced and a well resourced and timely complaints process is implemented.”

“The Canberra community deserves a best practice building regulatory system that keeps pace with the ACT’s record population growth and current building boom”, said Mr Hopkins.

The MBA has made submissions to the 2010 and 2015 building quality review and will publicise its submission to the 2018 Committee inquiry before the 30 November deadline.



For further information, please contact:
Michael Hopkins, CEO, 0418 984 594

← Back to listing