Need for professional indemnity insurance

6/5/93

The use of professional indemnity insurance had to be considered seriously by everyone involved in the building process, Works Minister Graham Kierath said today.

This included architects, engineers, surveyors and local authorities who issued building permits.

"It is unfair that an uninsured party who is to blame for a faulty building can effectively avoid liability and pass on his responsibilities to others, often leaving the client with no chance of recovering the losses," Mr Kierath said.

The Minister was commenting during presentation of the 1993 Architects' Board Award.

He said many clients in the building industry invested hard-earned savings and expected a quality product in return, which could be relied on for its designed life cycle.

It was a slur on the entire industry if that expectation could not be met because of the actions of a few.

"As such, I believe the architectural profession has a role to play in shaping a framework to rid the industry of such situations," Mr Kierath said.

He said the Victorian Government was working towards the abolition of joint liability for defective work and making insurance compulsory for all those involved in the construction industry.

"We need to look carefully as to whether this is the best solution for us and do so without delay," Mr Kierath said.

Though the Architects Act was established in 1921, when many unqualified and inappropriately skilled people were offering themselves as architects, there was still a need to protect the public adequately against poor workmanship in the building industry.

Mr Kierath said there was also a need to investigate local government control over the issuing of building permits and whether this caused construction delays.

There was no reason why qualified professionals such as architects could not issue permits, carry out statutory inspections and approve occupancy certificates.

The 1993 Architects' Board Award was presented to Peter Parkinson.

Media contact: Barry Thornton 481 2133 or 222 9595