BGC accused of throwing spanner in the works on home repair orders
Builder BGC is taking legal action to overturn orders by the WA Building Commissioner that they remediate homes damaged by multiple pipe bursts.
The State Government has pledged to fight the move.
BGC clients were already in a worse predicament than other homeowners impacted by the Iplex pipe debacle because they were excluded from a deal brokered by the State Government last year to address the situation.
The latest development means the Building Commissioner's orders to fix their homes could be squashed in the State Administrative Tribunal.
'Companies within the BGC Housing Group have commenced proceedings to overturn remedy orders made by the Building Commissioner in complaints related to the piping,' a spokesperson for the industry regulator, Building and Energy, confirmed this week. 'The State Government is taking steps to vigorously defend the proceedings in the interests of affected homeowners.'
Thousands of homes across WA have been damaged by water leaks and bursts related to the Pro-fit (Typlex 1050) polybutylene piping, manufactured by Iplex Pipelines Australia.
BGC, which is suing Iplex, claims the pipes weren't fit for purpose, while the manufacturer has defended its product and claims the pipes failed because they weren't installed correctly. BGC companies built 50-60 per cent of the affected homes.
The State Government was frustrated last year when the building giant refused to join an agreement that followed months of negotiations between builders and Iplex, mediated by former Supreme Court Justice, the Hon John Chaney SC.
Former Commerce Minister Sue Ellery hailed the agreement, known as the Industry Response, as a 'great outcome' for affected homeowners.
Some 37 other builders signed up to the deal, which provides remedial work proportionate to the number of leaks experienced. Owners who had suffered three or more leaks have the choice of a full or partial replacement of all pipes. The State Government contributed $30 million to a fund to help pay for the works.
Although excluded, BGC customers could alternatively seek building remedy orders from the Building Commissioner, the Government said. BGC has long been urging the Government to issue a product recall.
'BGC continues to respond to the Iplex faulty pipe issue, having now spent $49m repairing 4800 bursts and completing 2000 ceiling repipes,' a spokesperson said on Friday.
'BGC is committed to a full and final resolution that addresses this issue for every impacted homeowner, while holding the manufacturer accountable.
'To ensure this is the case, BGC has commenced its own action against Iplex in the Federal Court, alongside the consumer class action, which is the appropriate jurisdiction to resolve this matter.
'BGC maintains its position that the fastest and most comprehensive path to a permanent solution is via a State Government enforced product safety recall. Impacted customers widely support this solution.'
'An expert report commissioned by WA's Department of Energy, Mines, Industry Regulation, and Safety determined that the primary cause of the pipe failure was due to the way it was manufactured,' the spokesperson added.
'BGC's proposal to the Government is a staged recall that follows the same burst response guidelines of the Joint Industry Agreement, balancing trade and funding constraints while providing certainty for all homeowners.'
West Australians whose homes were fitted with Iplex polybutylene pipes but built before mid-2017 have received no assistance because the pipe manufacturer switched to a different resin from that time.
The Government claims water bursts were more frequent after the Typlex 1050 resin was added to the product. However, the earlier cohort complain their pipes have also failed on multiple occasions, flooding their homes and wreaking misery.
A support group with more than 4000 members claims about 1500 had the pre-2017 pipes.
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