In the wake of the release of a series of reports, commissioned to evaluate safety, compliance, enforcement and security of payment concerns in the building and construction industry, the Building Ministers’ Forum (BMF) recently held a meeting to discuss:
- Shergold and Weir’s report “Building Confidence: Improving the effectiveness of compliance and enforcement systems for the building and construction industry across Australia” (Building Confidence Report); and
- John Murray’s “Review of Security of Payment Laws: Building Trust and Harmony” (Murray Review).
The Building Confidence Report made 24 recommendations aimed at facilitating the effective delivery of the National Construction Code (NCC). In consideration of these recommendations, the BMF directed the development of an implementation plan for reform for consideration at the BMF’s next meeting, focusing on:
- establishing controls to mitigate conflicts of interest for private building surveyors, as well as enhancing their supervisory powers and imposing on them mandatory reporting obligations;
- nationally consistent registration of building practitioners; and
- requiring that design documents are prepared by appropriate categories of registered practitioners and demonstrate that the proposed building complies with the NCC.
In light of the Murray Review, the BMF agreed to work collaboratively to improve consistency between security of payment regimes across Australia, meaning that the industry can expect further changes are imminent.
In addition, the BMF discussed:
- the permanent labelling of Aluminium Composite Panel products, and agreed that implementing such practices is critical; and
- concerns regarding professional indemnity insurance for building practitioners, particularly for building surveyors and certifiers, and agreed to develop an nationally consistent approach.
Minister for Small and Family Business, Workplace and Deregulation, Craig Laundy, said “effective compliance and enforcement systems in the building and construction industry are critical for Australians to have confidence in their built environment. The Building Confidence Report is our roadmap for reform.”
“The meeting of the Building Ministers was productive and the agreement for an implementation plan is an important first step forward, however it’s critical for states and territories to commit to genuinely working cooperatively to improve the lives of all Australians through a more harmonised and better enforced building industry,” said Mr Laundy.
CDI Lawyers will keep you abreast of any legal developments within the building and construction industry as and when they are announced.
Key contacts:
