The Builders Collective of Australia has called on Prime Minister Scott Morrison to address "appalling failures" of the construction sector by establishing a Royal Commission into the industry.

The industry group believes well-publicised incidents such as the Opal Tower evacuation in Sydney and the Lacrosse apartment fire in Melbourne are evidence of "a broken system".

Last week, the Victorian Civil and Administrative Tribunal ordered Lacrosse owners be paid $5.7 million damages, as a result of a serious cladding fire on November 24 2014, which was started by a single cigarette on a balcony.

Builders Collective President Jim Dwyer said the decision must be used to "take the industry forward".

"The VCAT judgment is the outcome that we have been fighting for years," he said.

“The judgement is a breath of fresh air and vindicates our long-held position. 

Related Reading: What apartment owners should be aware of following Opal controversy

"Our practitioners need to be held accountable for their actions by our regulator, which enforces compliance of the existing regulations.

"This would help create a compliant industry.” 

Mr Dwyer has outlined the group's reasons for wanting a Royal Commission in a paper which has been submitted directly to the Prime Minister.

The Residential Construction Industry in Australia: Destined for Disaster identifies four key areas of concern that have developed within the industry throughout the past few years.

They include the privatisation of building certifiers/surveyors, the "virtual collapse" of Builders Warranty Insurance with the demise of HIH insurance, and a national shift toward high-density living in Australia.

Owners Corporation Network of Australia chairman Stephen Goddard has backed the group's calls for a Royal Commission, telling Fairfax Media a lack of accountability from designers, engineers, architects and builders had resulted in a "loss of public confidence" in strata living.

“If you know you have an 80 per cent chance of buying into a defective building, why would buy off the plan especially if neither the builder or developer owes you duty of care?," he said.

Sources: Fairfax Media

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