Builder won't let us nominate our surveyor (Victoria)

Hi all, we are planning to build a house in Victoria (Melbourne West) and have spent a year planning the build with our builder - UrbanEdge. Now at contract we have been told that we have just one option for surveyor and if we don't go with their preferred surveyor, then we can't build with them.

Given the amendments to the building act which prohibits builders from nominating private surveyors for domestic projects, this kind of behavior doesn't help build any confidence towards our preferred builder.


What are our options here ? Clearly we can refuse to sign on the dotted line, but we've invested heavily with them (time & money) and would like to somehow make this work.

I am currently halfway though building with Urban Edge. They said the same to me, but when I pushed it and pointed out the legalities they changed their tune a bit and said that I could use another one, but it would impact build times etc as they have an agreement and processes with Group 4, and if I use my own they would have to stop the build each time which would add to the contract time etc etc etc. I still had to sign a form appointing Group 4


Group 4 seem to be fairly reputable (and do most of the of the volume builders), so I just gave in, as I was planning to get my own private building inspector anyway.... who check much more than the surveyor

brokenstick Thanks a lot for your reply. It's great to be in touch with someone whose gone through the same issues..
I think we'll be pushing back as their quotes & timelines should have factored the current building act. We are building the Autern 54 and given the size & cost of the build, I won't be comfortable with them going with their preferred option.

Did you manage to negotiate the cost of delays ? We were initially told that they are flexible and it can be changed based on the new properties rental valuation. But when we provided a rental valuation of $500, we were told that management doesn't agree and it will stay at $260 per week. I've seen some of their build go on for 2 years and that's another worry.

If I am building again I will go for my own surveyor. The surveyor they nominate do not do any inspection and just say ok to everything. Even in cases where there is no compliance.

The builders will try to say it will increse build time and so on..which means they go to next stage without fixing the issues. Some they never fix.

Independant inspector report is not binding on builder. They say it is compliant.

No we didn't change the cost of delays. Fortunately we seem to be on track to finish within our build period of almost a year.

I found them to be quite flexible though, they changed quite a few other clauses I wasn't happy with or which I believed needed further information or clarification.

I also found their drawings and documents to very good - I have a bit of a construction background and went though everything with a fine tooth comb and found very few errors/ omissions (well that we we have picked up during construction so far, touch wood!)

This keeps getting better & better as I dig more into it; apparently UrbanEdge are within their rights to bypass the amendments to the building act & enforce the recommendation of a building surveyor.

https://www.accc.gov.au/public-register ... 291-n99292

As the notification is 'Under consideration', it means that ACCC has no objections to it.
What use is the building act when builders can find ways to game the system.

And here we go god dam dogs they take your money then hold you for ramson id report them to the obudsman office and the VBA and id make it a point to tell the builder you will report them to the anti corruption commission, becasue that is clearly corruptiln and make it clear to the builder you will report them and ask for your money back. Now i can may be guess who the builder is, wòuld be burbank homes they use tactics like that. If it is them please let me know i may be able to tell you how to hold them for Ramson the dirty busterds. Id love to help.

Regards

Yes, it is the Burbank Group as UrbanEdge is part of the Burbank group.
I've raised a complaint with VBA & the ACCC regarding their conduct. We spent $4,500 with them and they are unwilling to refund any of that money.

They are operating within the legal framework unfortunately even though their stated reasoning is highly questionable.

The ACCC has been ineffective in this instance.

How is that within the legal frame work it's a joke is that what the VBA and the ACCC said to you, with those answers you could go to the media and expose everyone because it sounds like a corruption plus and people need to know what Burbank is doing and the government departments are getting a hand out. I don't understand why your rights have been put aside. Its a real scam from builders to VBA and ACCC, how they say it's within legal frame work how is that even possibl. Id like to know more if you don't mind.
Regards

I cannot wait to hear from Burbank since I have given Burbank till the 29th Jan to reply to my demands it may sound bit harsh but it's the only thing they understand playing fire with fire. I am done been polite playing by the rules which they keep winning. So unless Burbank comes to the party aim going to expose all of their dirty laundry for everyone to see. Some people may say I am wrong but now I'll just play hard it's cost me so much money so enough is enough of these scum bags distroying people lives.
This is where I am at these days Burbank had a chance and they stuff it right up by thinking I was bluffing since our lawyer had not used what we had. To late now they will pay. And I hope in the process will help others. Iam hurt angry very angry so am done been polite play by the book pay lawyers they take your money as well. If Burbank is reading these post I hope they are I am coming for you. I'll see you in early February at vcat Burbank be ready . For the s...it . That's all.

It is undisputable that it is within the legal framework for Mahercorp Pty Ltd and Urbanedge Homes Pty Ltd to lodge the documents.

The fact that the documents received on 31 August 2016 by the ACCC are still under consideration is the problem if the documents lodged allowed Mahercorp Pty Ltd and Urbanedge Homes Pty Ltd to operate as requested and as documentary evidence has shown them to be doing.

I personally find it strange that the document's lodgement would allow Mahercorp Pty Ltd and Urbanedge Homes Pty Ltd to continue operating with the then status quo and the legality or otherwise of Mahercorp Pty Ltd and Urbanedge Homes Pty Ltd doing so obviously needs to be established to your satisfaction. You can query this with the ACCC and it would appear that baronx has already done this.

It has to be noted that the Victorian legislation preventing the builder from appointing the private building surveyor was introduced on 1 September 2016 and the very good reasons why the legislation was introduced are well documented.

Got the below response from ACCC.. this just keeps better & better. Seems like we have to go to Consumer Affairs Victoria now.
As a consumer, there doesn't seem to be any hope !!

Thank you for writing to us about Urbanedge Homes. We have recorded the details of your report. Notifications provide protection from prosecution for exclusive dealing, small business collective bargaining and resale price maintenance. As we have authorised this exclusive arrangement, it is unlikely to raise concerns under the laws we administer. We can offer you information about your consumer rights and how to resolve a dispute with a business.
How to resolve your dispute
If you cannot resolve your dispute with the seller, you can contact Consumer Affairs Victoria. As your local consumer protection agency, Consumer Affairs Victoria can help consumers resolve some disputes. Find out more about how to make a complaint to Consumer Affairs Victoria on its website.

If Consumer Affairs Victoria can’t help, you may need to take your complaint to your state or territory small claims tribunal.

Your rights: accurate information
The Australian Consumer Law provides consumers with the right to truthful and accurate representations when buying a product or service. This means that businesses must not mislead you with statements that are incorrect or likely to give you the wrong impression. This rule applies to information that a business provides you in any medium, including when talking to a sales representative, on packaging, in online shopping forums or social media.

If a business misleads you, and you experience loss, you might be entitled to a remedy.

You can read more about false or misleading claims on our website.

We have recorded your report
We appreciate you reporting your matter to us. All information is potentially valuable to help us identify trends and where we can most effectively direct our resources, so we encourage you to report any behaviour or business practice that is concerning to you.

What the ACCC does with information from reports
The ACCC focuses on enforcing the laws we administer in circumstances that have the potential to harm the competitive process or result in widespread consumer or business detriment. We use reports received from the public and small business, as well as other sources of intelligence, to inform our work. When the ACCC takes action, it is to remedy market problems; we are not a complaint handling body and don’t resolve individual disputes. You can read more about how we prioritise our work and what we can and can't do for consumers on our website.

We hope the information we have provided today will be helpful to you.

The ACCC has not considered Unfair Contract Terms, something the ACCC is suppose to police. It would seem that they can't do up their own shoelaces without tripping over their own toes.

https://www.accc.gov.au/consumers/contr ... ract-terms

Hi. Boronx i know i am late at answering your question, how did you go with urbanedge which are owned by burbank Australia. The law states a builder cannot hire a building surveyor on your behalf if the refuse they can be in serious trouble ring the vba.
How did you end up going did you sort out that problem, you can refuse and get your money back its in the ACCC domestic building contract ACT please downloaded from the website. Please let me know if i can help.
Regards

Simple answer,p--- off ,I couldn't say it quick enough.

Hi,

I've just come across this thread and I am about to build and have encountered the same thing whereby the builder has advised that they appoint Group 4 Building Surveyors on our behalf to ensure they are complying throughout construction and this cost is built into the house price.

They said we are welcome to appoint our own private surveyor however a further 2 weeks will be added onto the contract timeframe for every inspection they take out.

This really doesn't feel right and i don't feel comfortable signing a contract agreeing to it either. Can I ask how your experiences ended up going? Any feedback on Group 4 Building Surveyors?

Appreciate any feedback.

Cheers,

Norts33

There are very real reasons why legislation was passed that prohibited Victorian builders from appointing the building surveyor.

The change to the contract as described would come under the definition of Unfair Contract Term. Check the ACCC website for details.

Using your own building surveyor as required by Victorian legislation would not add to the build time.

Have you signed a contract yet?

My builder did the same - said if I didn't use Group 4 there would be delays as they have SLAs with them etc etc etc . I expressed displeasure but decided not to fight it and just went with Group 4.

They were happy for me to use and cooperate with an independent inspector, so I took this instead. These inspections were far more detailed than anything the surveyor did. If they had resisted an independent inspector then i would have taken that as a red flag

I take it that SLAs refer to Service Level Agreements. That is their problem and a poor excuse but it also shows that your appointed building surveyor had a conflict of interest, one of the major reasons for the legislation's introduction. Given the time frame since legislation was introduced on 1 September 2016, it also sounds like a terminological inexactitude.

Unfortunately, new home owners are most often emotionally committed to a particular house when such discussions arise and builders know this.

For the legislation to be effective, the VBA should have been given responsibility to allocate appointments of building surveyors but recent events have shown how horrifyingly ineffective the VBA hierarchy has been in their regulatory governance of building surveyors and many other serious matters.

Did the builder appoint Group 4 or did the builder tell you that you had to make the appointment?

https://www.vba.vic.gov.au/consumers/ap ... g-surveyor