- Outcome reached on industry response between thepipe manufacturer and builders
- Decision provides way forward for impacted homeowners
- Cook Government to provide $30 million as partof agreement
- Legislative changes to be introduced to protectWA homeowners
An in-principle agreement has been secured between the CookGovernment, Iplex Australia and several builders to assist Western Australianhomeowners impacted by leaking Pro-fit (Typlex 1050) polybutylene pipes.
The agreement comes after a mediation process overseen byformer Supreme Court Justice, the Hon John Chaney SC, and supported by theHousing Industry Association of Western Australia.
While the details of the agreement are expected to befinalised in the coming weeks, it will provide WA homeowners certainty thatleaks with the pipes will be managed and resolved in a planned and controlledmanner at no cost to them.
Builders will be able to sign up and participate in theagreement to access funding to remedy the leaking pipes in the homes theycompleted or renovated. Importantly, theIndustry Response will not be capped in time or cost, meaning that eligiblehomeowners will continue to have access to a remedy under the response,regardless of when their home was built or when the leak occurs. The CookGovernment will provide a capped contribution of $30 million to the overall fund,with Iplex Australia and builders to meet the remaining uncapped costs.
Remedial work on affected homes will be undertaken byparticipating builders proportionate to the number of leaks experienced, withhomes that have experienced one leak being offered repairs and a ceilingre-pipe, those with two leaks offered a zone re-pipe, and those with three ormore being offered the choice of a full or partial replacement of all pipes.
Funding to cover the costs of alternative accommodation orother arrangements needed where homeowners have to move out during full pipereplacement will also be offered.
Importantly for homeowners, the funding for participatingbuilders to complete the necessary works will be available irrespective of whenthe home was completed or when the leaks occurred.
The product manufacturer, Iplex Australia, will also beoffering the installation of a leak detection unit free of charge in all homeswith the Typlex 1050 pipes to reduce the risk of property damage.
Several WA builders have already agreed to participate.Other builders, including plumbing contractors and owner-builders, who haveinstalled the product in homes will be able to sign up directly with themanufacturer once the details of the agreement have been finalised.
In due course, affected homeowners will be encouraged tocontact their builder in the first instance to determine if they areparticipating and to make suitable arrangements in respect to remedial works.
Building group BGC has not agreed to participate but willcontinue negotiations with Iplex Australia regarding its future participationin the Industry Response. The option remains available for BGC to join theIndustry Response.
To ensure all WA homeowners remain protected, the CookGovernment will shortly introduce legislation into the Parliament to extend theperiod for making complaints to the Building Commissioner about the leakyTyplex 1050 pipes to 15 years.
This change will allow eligible homeowners who fall outsideof the current six-year limitation period to lodge a complaint and have abuilding remedy order (BRO) issued against their builder. A BRO requires thebuilder to repair the leak in line with the Industry Response policy. Thismeans for one leak, a repair and ceiling re-pipe will be offered up to a fullre-pipe for three or more bursts.
Under the reforms, WA homeowners can receive the sameremedial work for leaks regardless of whether or not their builder isparticipating in the Industry Response. Eligible BGC customers will need tofollow the published Building and Energy complaint resolution process to accessthis remedy.
Once the details arefinalised, homeowners will be encouraged to contact their builder to workthrough the next steps.
Comments attributed to Commerce Minister Sue Ellery:
"This in-principle agreement is putting homeowners at the centre, to gettheir homes repaired in the quickest time possible and to provide peace of mindthat their home is safe.
"Getting an in-principle agreement is a great outcome and homeowners canbe reassured that they have a way forward in getting these works done in atimely and sustainable manner.
"The Cook Government has acted in customers' best interests and willintroduce legislation to protect homeowners with leaking Pro-fit Typlex 1050pipes for 15 years.
"The legislation will ensure all eligible homeowners are given the sameremedy for leaking pipes, no matter who they built with or when they builttheir home.
"I want to thank all parties that have been involved in this process,including the Housing Industry Association who have been representing some ofthe builders."
