Until now, only building surveyors and building inspectors were permitted to be registered and practice in Victoria despite cladding related exclusions in their professional indemnity policies. From 15 February 2020, exclusions in professional indemnity insurance policies in relation to external wall cladding products will also be permitted for a wider group of building professionals, enabling them to continue to be licensed, registered and practise.

Building Practitioners’ Insurance Ministerial Order dated 17 January 2020

Effective from 15 February 2020, the following building practitioners can continue to be registered and continue to operate. They will be permitted to hold professional indemnity insurance that contains exclusions relating to non-compliant external wall cladding products and high-risk external wall cladding products that do not comply with any declarations made under section 192B of the Building Act 1993 (Vic):

• building surveyors;
• building inspectors;
• quantity surveyors;
• engineers including civil engineers, mechanical engineers, electrical engineers and fire safety engineers; and
• draftspersons including building designers (architectural, interior or services).

A copy of the Ministerial Order can be found in the Victoria Government Gazette at pages 1 to 4. This Order will revoke the previous Order published on 11 July 2019 which only applied to building surveyors and building inspectors. We note that at this stage, no declarations have been made under section 192B.

Architects Insurance Ministerial Order dated 17 January 2020

In addition, effective from 15 February 2020, all architects can continue to be registered and practise if they hold professional indemnity insurance. This, however, is with an exclusion relating to non-compliant external wall cladding products and high-risk external wall cladding products that do not comply with any declaration made under section 192B of the Building Act 1993 (Vic). At this stage, no such declaration has been made under section 192B.

This Ministerial Order (at page 5 and following) revokes the previous Order made on 12 May 2005.

If you would like any assistance or advice, please do not hesitate to contact us.