Australian Property News

Queensland Government protects homeowners from dodgy building

Posted on Thursday, September 02 2010 at 2:24 PM

Dodgy building is on the rise as compensation for homeowners increased by 50 per cent in the past financial year to a record of $42 million in claims, according to the Queensland Government.

The Building Services Authority (BSA), the government's construction industry regulator, increased its protection payouts under the Home Warranty Scheme to cover a rise of builders cutting corners and not finishing jobs.

"I am pleased the BSA has been able to protect homeowners at a time of economic stress, particularly as their home is usually most people's largest investment," said Public Works Minister Robert Schwarten.

The record payments in 2009-10 allowed the homes of 1705 Queensland families to be repaired or completed, said Schwarten. In 2008-09, 1359 homes were repaired or completed.

Last year, the Home Warranty Scheme paid out an average of:

• $10,700 on each defect claim

• $38,000 on each non-completion claim, and

• $24,700 on each subsidence claim.