The WA government has introduced new legislation designed to strengthen regulatory oversight of the building industry, with a focus on addressing risks associated with financially distressed builders.
The proposed Building Services Legislation Amendment (Financial Oversight) Bill 2026 would expand the powers of the state’s Building Commissioner and Building Services Board, enabling earlier intervention where builders are experiencing financial difficulty.
Expanded powers for regulators
Under the reforms, regulators would be able to scrutinise the financial capacity of building contractors and take action where concerns arise, including imposing conditions on registration or cancelling registration altogether.
The measures are intended to prevent companies from continuing to trade while insolvent, a scenario that has previously left homeowners with incomplete projects and limited recourse.
In cases where registration is cancelled, affected homeowners would be able to access home indemnity insurance and engage a new builder to complete works.
Broader contract law reforms under consultation
Alongside the Bill, the government has released a discussion paper outlining a broader reform agenda for home building contract laws, with public consultation open until late June via an online survey.
The consultation is the next stage of an ongoing review led by Parliamentary Secretary to the Commerce Minister, the Hon Dan Caddy MLC. The government has described the initiative as “a comprehensive roadmap for the State’s home building contract laws”.
Proposals under consideration include:
- expanding consumer protections to higher-value contracts
- clarifying when price increases are permissible
- improving dispute resolution processes
- modernising penalty frameworks and remedy thresholds
- introducing an accreditation scheme for building inspectors
Why now?
The reforms come amid continued scrutiny of builder solvency and project delays within WA’s housing market, including high-profile company collapses that have affected homeowners and subcontractors.
Recent reporting has highlighted the challenges faced by customers when builders fail, with delays in regulatory action previously limiting access to insurance and dispute resolution pathways.
Attorney-General Dr Tony Buti said the reforms were designed to improve confidence in the sector and strengthen safeguards for consumers entering building contracts. He added that earlier regulatory intervention would provide greater certainty across the construction supply chain. “Building regulators will be able to assess and act on financial concerns much sooner, providing reassurance for homeowners, suppliers and subcontractors who will be potentially impacted”, Dr Buti said.
