Major Perth builder BGC is urging homeowners affected by burst pipes to avoid legal action as the company receives nearly seven reports of pipe failures each day. The issue involves polybutylene water pipes manufactured by Iplex and installed in almost 12,000 homes built between 2017 and 2022.
Homeowners began reporting burst pipes and water damage in 2020. BGC's general manager Sam Gray said the company had used Iplex pipes for 20 years, but in 2017 the manufacturer changed a key ingredient to a Korean resin called TYPLEX-1050, which Gray identified as the likely cause of the problem.
Iplex's parent company Fletcher Building disputed this, stating that investigations pointed to faulty installation. However, an investigation by Western Australia's Building and Energy division inspected 50 homes and concluded that workmanship was not the cause of the failures.
BGC estimates replacing the pipes in all 11,817 affected homes will cost $700 million, about $60,000 per home. The company is calling for a product recall, which would shift the financial responsibility to Fletcher Building.
WA Consumer Protection Commissioner Trish Blake said her agency could issue a product recall independently of any litigation. She confirmed an investigation is underway to explore a voluntary resolution between the parties.
Homeowner Ashley Rozze reported that pipes burst 13 months after moving in, with multiple leaks causing extensive mould and requiring two years of repairs. He described the experience as stressful and costly, with health impacts from mould exposure.
