Statement From The Department Of Energy, Mines, Industry Regulation And Safety:

The State Government’s priority is to ensure the best outcome possible for Western Australians homeowners who have been impacted by leaking pipes.

Building and Energy’s plumbing investigation report is part of the ongoing building dispute processes related to Iplex Pro-fit pipes. Owners of properties containing Iplex Pro-fit plumbing pipes are encouraged to lodge a building complaint with Building and Energy if their house or building is less than six years old. Under Western Australia’s building laws, the builder is responsible for addressing building defects within six years of a home’s practical completion.

In May, the State Government joined the mediation process in an effort to resolve the matter. The mediation between builders, Iplex and the State Government is continuing with the aim of reaching a final agreement as soon as possible. The State Government has committed to contribute $30 million towards the industry response to enable homes to be rectified and kept safe.

The investigation into a product recall is ongoing. Once finalised, advice will be provided to the Commerce Minister for her consideration. This would be the first recall of its kind in Western Australia – it is a complex process and requires thorough investigation to ensure the best outcome for those impacted.

Statement From BGC:

BGC commences litigation against Iplex Pipelines

BGC (Australia) Pty Ltd and is related corporate entities (BGC) confirms it will commence litigation against Iplex Pipelines Australia Pty Limited (Iplex), on the ongoing Iplex pipe burst matter. Iplex is part of the Fletcher Building Group.

BGC has had its hand forced by third-party events and is now compelled to take this urgent action against Iplex to protect not only its interests, but also every impacted builder and the State of Western Australia.

An ‘opt-out’ Class Action launched by a customer of WA competitor firm Delstrat against Iplex is high risk for the broader liability and viability of all WA industry stakeholders.

This is not just a BGC problem. It impacts more than 30 WA builders, hundreds of plumbers and tens of thousands of homeowners across the country.

If this class action by consumers fails it will have serious implications for every impacted homeowner, plumber and builder in Australia.

For this reason, BGC has made the decision to side with consumers and believe that it is best resourced and prepared to establish Iplex’s liability to consumers.

BGC has supported the State Government-led industry solution in its intent. However, significant risks have emerged requiring this action to achieve a fair and complete outcome for WA builders and customers.

Fletcher Building (of which Iplex is a part) recently confirmed the divestment of Tradelink and there are concerns that cash resulting from the divestment may be repatriated to the New Zealand parent company and outside of their Australian entity which houses Iplex and its associated liabilities BGC Chief Executive Officer Danny Cooper said the company’s litigation action had the best chance of protecting impacted customers in WA from being left unsupported by the manufacturer, while protecting BGC as the State’s largest builder from inequitable liabilities.

“We are concerned that adequate provisions are not being made by Fletcher Building and, as we understand, there is no cross guarantee between Fletcher Building Australia and Fletcher Building New Zealand.

“We have been proactively engaged with the Government of Western Australia on our action and will continue to co-operate with the State in parallel with our litigation.”

BGC has today notified Iplex and its lawyers that it is commencing a Federal Court claim concurrently with the existing consumer Class Action.

Iplex pipe burst rate update

As of 21 August 2024, BGC alone have had 3,427 bursts across 1,664 homes. All the bursts have happened on Iplex Pro-Fit pipe that was made using the Typlex-1050 resin.

Typlex-1050 only started to be used by Iplex from July 2017 before that the Pro-fit pipe was manufactured from Basell manufactured resin.

BGC have used the Iplex Pro-fit pipe in more than 40,000 homes since 2005 and had no issues until the introduction of the Typlex-1050 resin.

In its 2017 annual report, Fletcher Building talked to Iplex under-performing and therefore enacting cost saving initiatives.

The burst rate has exploded over the last few months, with BGC customers reporting ~3.3 bursts per day in June 24. The burst rate has now increased ~50% to 5 bursts per day.

That translates to an unacceptable 150 WA homes experiencing a leak each month.

Fletcher Building has estimated there are a total of 15,000 homes with Typlex-based Iplex in WA. BGC estimates it has ~7,700 homes with Iplex pipe built after 2017.

The WA industry regulator ruled out installation practices as the cause of the problem back in August 2023.

Statement From Fletcher Building

“We empathise with home owners facing difficulties if they have to deal with plumbing failures in their Perth homes.

"That’s why our priority remains focused on reaching a pragmatic and coordinated industry response as the most effective and near term way to address their needs.

"Constructive negotiations are ongoing and Iplex is intent on trying to reach an agreement in principle with the Government and key parties.”