BPC Rectification Orders are Retrospective
The Building and Plumbing Commission's new power to issue rectification orders, which commenced on 1 July 2026, operates retrospectively. The BPC can issue a rectification order in respect of building work completed before the commencement date, provided the work remains within the applicable 10-year window.
The power in outline
Under the Building Legislation Amendment (Buyer Protections) Act 2025 (Vic), supported by the Building Amendment (Rectification Orders) Regulations 2025 (Vic), the BPC may issue rectification orders requiring incomplete, defective or non-compliant building work to be fixed. Orders can be directed not only to the person who carried out the work (builders and subcontractors) but also to developers of residential apartment buildings.
An order may be issued up to 10 years after completion of the work, with the 10-year period running from the issue of the occupancy permit. That period can be extended by VCAT. Before issuing an order, the BPC must be satisfied that the relevant statutory criteria are met, and it may have regard to matters including the terms of the building contract (including warranties), decisions of qualified inspectors, directions to fix, emergency or building orders under Part 8 of the Building
Act, and undertakings given under section 234B.
Retrospective reach
Because the power is retrospective, buildings completed before 1 July 2026 are captured so long as they sit within the 10-year period from the occupancy permit. In practice this means projects delivered years before the regime existed (potentially back to mid-2016) can now attract rectification orders. This is a materially expanded enforcement reach that did not exist under the predecessor regime (the Victorian Building Authority), and it shifts defect risk back onto builders and developers and away from purchasers, including where a building has since changed hands.
Consequences of an order
Failure to comply with a rectification order is an offence and constitutes grounds for disciplinary action against a registered building practitioner, with penalties applying. The BPC may also issue a rectification costs order, requiring the recipient to pay the BPC's costs of investigating, preparing and issuing the order and of monitoring compliance. If necessary, the BPC can cause the rectification work to be carried out itself and recover those costs. An order may include a finding
that work is defective, non-compliant or incomplete, a finding that owners and owners corporations may seek to rely on in related proceedings.
Practical implications
Builders, subcontractors and developers should assume that historical projects within the 10-year window are exposed to the new regime. Reviewing legacy projects for known defects, retaining completion and inspection records, and revisiting contractual warranty positions and insurance arrangements are prudent first steps. The rectification order power sits alongside the broader 1 July 2026 reforms, including the first-resort Home Warranty insurance scheme (replacing Domestic Building Insurance) and the 2% developer bond for buildings over three storeys.