Outcome reached for homeowners impacted by leaking pipes issue

• Outcome reached on industry response between the pipe manufacturer and builders
• Decision provides way forward for impacted homeowners
• Cook Government to provide $30 million as part of agreement
• Legislative changes to be introduced to protect WA homeowners

An in-principle agreement has been secured between the Cook Government, Iplex Australia and several builders to assist Western Australian homeowners impacted by leaking Pro-fit (Typlex 1050) polybutylene pipes.

The agreement comes after a mediation process overseen by former Supreme Court Justice, the Hon John Chaney SC, and supported by the Housing Industry Association of Western Australia.

While the details of the agreement are expected to be finalised in the coming weeks, it will provide WA homeowners certainty that leaks with the pipes will be managed and resolved in a planned and controlled manner at no cost to them.

Builders will be able to sign up and participate in the agreement to access funding to remedy the leaking pipes in the homes they completed or renovated.  Importantly, the Industry Response will not be capped in time or cost, meaning that eligible homeowners will continue to have access to a remedy under the response, regardless of when their home was built or when the leak occurs. The Cook Government will provide a capped contribution of $30 million to the overall fund, with Iplex Australia and builders to meet the remaining uncapped costs.

Remedial work on affected homes will be undertaken by participating builders proportionate to the number of leaks experienced, with homes that have experienced one leak being offered repairs and a ceiling re-pipe, those with two leaks offered a zone re-pipe, and those with three or more being offered the choice of a full or partial replacement of all pipes.

Funding to cover the costs of alternative accommodation or other arrangements needed where homeowners have to move out during full pipe replacement will also be offered.

Importantly for homeowners, the funding for participating builders to complete the necessary works will be available irrespective of when the home was completed or when the leaks occurred.

The product manufacturer, Iplex Australia, will also be offering the installation of a leak detection unit free of charge in all homes with the Typlex 1050 pipes to reduce the risk of property damage.

Several WA builders have already agreed to participate. Other builders, including plumbing contractors and owner-builders, who have installed the product in homes will be able to sign up directly with the manufacturer once the details of the agreement have been finalised.

In due course, affected homeowners will be encouraged to contact their builder in the first instance to determine if they are participating and to make suitable arrangements in respect to remedial works.

Building group BGC has not agreed to participate but will continue negotiations with Iplex Australia regarding its future participation in the Industry Response. The option remains available for BGC to join the Industry Response.

To ensure all WA homeowners remain protected, the Cook Government will shortly introduce legislation into the Parliament to extend the period for making complaints to the Building Commissioner about the leaky Typlex 1050 pipes to 15 years.

This change will allow eligible homeowners who fall outside of the current six-year limitation period to lodge a complaint and have a building remedy order (BRO) issued against their builder. A BRO requires the builder to repair the leak in line with the Industry Response policy. This means for one leak, a repair and ceiling re-pipe will be offered up to a full re-pipe for three or more bursts. 

Under the reforms, WA homeowners can receive the same remedial work for leaks regardless of whether or not their builder is participating in the Industry Response. Eligible BGC customers will need to follow the published Building and Energy complaint resolution process to access this remedy.

Once the details are finalised, homeowners will be encouraged to contact their builder to work through the next steps. 

Comments attributed to Commerce Minister Sue Ellery:

"This in-principle agreement is putting homeowners at the centre, to get their homes repaired in the quickest time possible and to provide peace of mind that their home is safe. 

"Getting an in-principle agreement is a great outcome and homeowners can be reassured that they have a way forward in getting these works done in a timely and sustainable manner.

"The Cook Government has acted in customers' best interests and will introduce legislation to protect homeowners with leaking Pro-fit Typlex 1050 pipes for 15 years.

"The legislation will ensure all eligible homeowners are given the same remedy for leaking pipes, no matter who they built with or when they built their home.

"I want to thank all parties that have been involved in this process, including the Housing Industry Association who have been representing some of the builders."