Concerns
about the National Construction Code
Committee view
3.38 The committee notes the concern from witnesses and
submitters that the non-compliant use of cladding is widespread and that there
have been extensive delays in developing and implementing policies to address
non-compliance and non-conformity in the building industry.
3.39 As highlighted in Chapter 2, the committee notes
that the Building Minister's Forum (BMF) has now released the Assessment of the
Effectiveness of Compliance and Enforcement Systems for the Building and
Construction Industry across Australia review's terms of reference and its
timeline. The committee looks forward to following this review and learning
about its outcomes.
3.40 The committee also welcomes the recent announcement
that the National Construction Code (NCC) would be amended to reflect the Australian
Building Codes Board's (ABCB) new comprehensive package of measures for fire
safety in high rise buildings. The committee is hopeful that this amendment to
the NCC, if delivered in a timely manner, will provide greater clarity and
reduce the ambiguity around interpretation which has been identified by
stakeholders.
3.41 Of particular concern to the committee, and
stakeholders, is the long time lag between government responses to the Lacrosse
fire in 2014 and any meaningful resolution between governments, the BMF, and
the Senior Officers' Group (SOG) on possible steps forward. Furthermore, the
committee notes that more disastrous fires have occurred internationally, but
Australia has yet to implement any major reforms or communicate any course of
action publically. Considering the prevalence of polyethylene (PE) core
Aluminium Composite Panels (ACPs) across Australia, the committee considers it
paramount that all governments focus attention on this issue before the next
disaster occurs.
Mandatory third
party certification, national register and product auditing
Committee view
3.50 Submitters and witnesses have raised concerns about
the progress of the SOG Report's recommendations, which were due to be
finalised in May 2017. The committee is concerned that progress appears to have
stalled and there is no clearly identified timetable for implementation. The
committee is of the view that the implementation plan should be released as
soon as possible to assure stakeholders that progress is being made and again
makes its point about the timeliness in response to these issues.
Proposal
to ban Aluminium Composite Panels with a Polyethylene core
Committee view
3.63 The committee understands that under the NCC in its
current form, there are compliant uses for PE core ACPs in low-rise buildings,
as well as pathways through performance-based solutions to allow the use of PE
core ACPs in high-rise buildings. The committee also understands that the
signage industry uses PE core ACPs.
3.64 In light of the Grenfell Tower fire tragedy, the
committee does not consider there to be any legitimate use of PE core ACPs on
any building type. The committee believes that as there are safe non-flammable
and fire retardant alternatives available there is no place for PE core ACPs in
the Australian market. While Australian Border Force and suppliers of ACM are
currently unable to determine whether an imported building product will be used
in a compliant manner, the committee believes a ban on importation should be
placed on all PE core ACPs. In addition, the sale and use of PE core ACPs
should be banned domestically.
Recommendation 1
3.65 The committee recommends the Australian
government implement a total ban on the importation, sale and use of
Polyethylene core aluminium composite panels as a matter of urgency.
Greater
coordination and a national approach to reform
Committee view
4.13 The committee acknowledges that greater enforcement
of existing regulations is needed. However, current building regulations appear
inadequate and are too easily evaded, largely due to existing deemed-to-satisfy
and performance-based pathways, which provide avenues to circumvent Australian
Standards in the NCC. The committee supports the BMF's decision to establish an
independent review to assess the broader compliance and enforcement problems
within the building and construction systems across Australia. The committee is
encouraged by the fact that the terms of reference include developing
recommendations for a national best practice model for compliance and
enforcement to strengthen the effective implementation of the NCC. The
committee believes consideration should also be given to an expanded national
role for the Commonwealth government across all elements of the building and
construction industry, starting with the BMF.
National licencing
schemes
Committee view
4.20 The committee considers that a national licencing
scheme for all trades and professionals involved in the building and
construction industry including: building surveyors, building inspectors,
builders and project managers, would improve compliance and provide greater
consumer protection and public safety outcomes. A national licencing scheme,
including requirements for continuing professional development would ensure
that building practitioners have the necessary skills and knowledge to operate
in the building industry's complex regulatory environment.
Recommendation 2
4.21 The committee recommends that the Commonwealth
government work with state and territory governments to establish a national
licensing scheme, with requirements for continued professional development for
all building practitioners.
Need for greater
on-site supervision and oversight
Committee view
4.39 The committee supports the implementation of
nationally consistent mandatory on-site inspections throughout the construction
process. Whether this is done through the reinstatement of the role of Clerk of
Works or some other process is eventually a decision for governments. Either
way, it is evident from the evidence received that there needs to be a central
oversight role independent from industry to provide assurance to the public
that structures are built according to the agreed national standards. The
committee also endorses the inclusion of mandatory inspections by fire safety
engineers and fire authorities to ensure buildings are compliant and public
safety is upheld.
Addressing the
need for greater accountability
Committee view
4.44 The committee agrees that responsibility for
building compliance is currently weighted too heavily at the end of the supply
chain. Consequently, measures need to be put in place to ensure greater
accountability across the supply chain. The committee considers that the
Queensland bill will go some way to ensuring accountability is spread more
evenly across the supply chain from designers, manufacturers, importers,
suppliers and installers and supports the bill's intent. The committee also
encourages other jurisdictions to examine the bill and consider developing
similar approaches as a starting point to addressing this serious issue.
Recommendation 3
4.45 The committee recommends that the Building
Minister's Forum give further consideration to introducing nationally
consistent measures to increase accountability for participants across the
supply chain.
Availability of
Australian Standards
Committee view
4.54 The committee is dismayed that building
practitioners are expected to pay unreasonable sums of money to access
Australian Standards which are required to ensure they comply with the NCC. In
the committee's view, making Australian Standards freely available would have a
significant impact on building compliance. More importantly it will reduce the
overall cost of compliance and insurance and most significantly, it will reduce
the cost and impact on future state and territory emergency, fire and medical
services.
4.55 The committee understands that Standards Australia
International (SAI) Global's contract with Standards Australia is coming up for
renewal. The committee believes the Commonwealth government should give serious
consideration to engaging with Standards Australia to explore possible options
to providing free access to Australian Standards, including reinstating online
access to the Standards through Australian libraries.
Recommendation 4
4.56 The committee strongly recommends that the
Commonwealth government consider making all Australian Standards and codes
freely available.
Role of the
Federal Safety Commissioner
Committee view
4.64 The committee considers that the Federal Safety
Commissioner (FSC) has an important role in ensuring compliance with the NCC of
Commonwealth funded construction work. The committee is concerned that the FSC
does not appear to be adequately resourced to carry out its newly legislated
function to audit compliance with NCC performance requirements in relation to
building materials. Mr Edwards advised the committee that his office does not
have the resources or the expertise to conduct audits
4.65 In addition, the committee believes that loss of
accreditation to conduct Commonwealth funded work is not a strong enough
penalty for non-compliance with the NCC. The committee is of the view that a
stronger penalties regime should be imposed.
Recommendation 5
4.66 The committee recommends the Commonwealth
government consider imposing a penalties regime for non-compliance with the
National Construction Code such as revocation of accreditation or a ban from
tendering for Commonwealth funded construction work and substantial financial
penalties.
Recommendation 6
4.67 The committee recommends the Commonwealth
government ensure the Federal Safety Commissioner is adequately resourced to
ensure the office is able to carry out its duties in line with the new audit
function and projected work flow.
Illegal phoenix
activity in the building and construction industry
Committee view
4.73 The committee is concerned that it has been nearly
two years since its report on insolvency in the construction industry was
tabled and the Productivity Commission's report was released and considers that
a Director Identification Numbers (DIN) initiative should be considered as a
matter of urgency. A DIN initiative would go some way to preventing directors
engaging in illegal phoenix activity. The committee also considers that the
potential for a DIN initiative to assist credit reporting agencies in identifying
individuals who engage in illegal phoenix activity is worth further
investigation. The committee is encouraged by the government's willingness to
give further consideration to DIN's, it is concerned by the lack of a clear
timeframe for consideration.
Recommendation 7
4.74 The committee welcomes the Commonwealth
government's decision to give further consideration to Director Identification
Numbers and recommends that it expedites this process in order to prevent
directors from engaging in illegal phoenix activity.
Increasing
protections for end users
Committee view
4.80 The committee believes there needs to be a greater
awareness and protection for consumers in the residential strata sector. The
committee considers there is an urgent need to provide a statutory duty of care
to cover the discovery of
non-compliant or non-conforming building products for the increasing number of
the Australian public who purchase residential apartments.
Recommendation 8
4.81 The committee recommends that state and territory
governments work together to develop a nationally consistent statutory duty of
care protection for end users in the residential strata sector.
Next steps for the
committee
4.82 The committee anticipates that significant changes
will arise from the reforms that the Commonwealth, state and territory
governments will undertake as a result of this serious issue. The committee
intends to keep a close eye on how these reforms are developed and the eventual
timeliness of their implementation as this continues to be a significant
shortcoming across all governments.
4.83 The committee urges, as a matter of the upmost
importance, to work effectively together and to get the job done expeditiously.
The committee will also continue to monitor the progress of the BMF, its
review, and also its ongoing work on the issues of non-conforming and
non-complaint building products. The committee will present an interim report
on the illegal importation of asbestos on 31 October 2017 and its final report
for the broader inquiry by 30 April 2018.
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