Ultra Building first Australian company to achieve 4-star iCIRT rating

The introduction of the Independent Construction Industry Rating Tool (iCIRT), is helping to rebuild public confidence in residential construction.

Created by global rating firm Equifax with support from the NSW Government, the voluntary rating tool involves a thorough and independent review of companies’ history and risk factors.

A database of the first companies to be verified went live in May 2022.

The ratings initiative forms part of the NSW Government’s Construct NSW transformation strategy.

The system uses a five-star system to rate builders on their apartment build, which must meet the minimum benchmark average of three out of five stars or above to be deemed “trustworthy”.

When announcing the system in 2021, then-NSW Minister for Better Regulation and Innovation Kevin Anderson said the iCIRT marked a new era of transparency for NSW apartment buyers.

“Our building reforms have focused on lifting standards and rebuilding public confidence in the residential apartment industry and our rating system is the ultimate embodiment of that goal,” Mr Anderson said.

“Ratings are a game changer. Consumers in NSW will now have the benefit of an independent assessment that lets them find a trusted, rated developer who has shown they have the capital, experience and capability to deliver a quality apartment.”

“These reforms will help protect people from physical, emotional, and financial harm, leaving those few that have been doing the wrong thing with nowhere to hide,” Head of Product and Ratings Services at Equifax, Brad Walters said.

The Independent Construction Industry Rating Tool (iCIRT) gives developers, builders, subcontractors, certifiers and consultants a rating of between one and five stars.

Despite being totally voluntary to participate in, Mr Walters says the tool is an opportunity for companies that are doing the right thing to set themselves apart from the others.

As well as pulling together thousands of data points based on the character, capability, capital and other defining aspects of firms, the rating process looks at ownership structures, associated parties and key trading partners to create a clear risk picture.

Mr Walters said the tool would help “bolster consumer confidence amid a backdrop of challenging times in the construction industry”. “iCIRT brings much-needed visibility to an industry where reliable, objective data has up until now been hard to come by.”

So far the tool is only being rolled out in NSW but the company said it plans to expand to other states and territories, with interest being shown in Victoria and New Zealand.

Homebuyers, along with anyone who works in or supplies to the construction sector, are encouraged to check the newly launched database for builders and developers with a proven record of quality and reliability.

The iCIRT star-rating service is the outcome of more than twelve months of industry collaboration, and Equifax worked closely with a broad base of industry associations and professional representatives across construction and design, finance, insurance, legal, homepurchasing, research and professional services. The collaborative group is committed to working together to improve transparency and trust across our built environment.

The iCIRT system is being released in twostages: the first stage, which is currently available rates builder, developers and certifiers; and the second stage will rate to rate construction industry consultants (including designers, architects and engineers), suppliers and manufacturers.

In Stage 1, Government regulators are able to order single- or multi-party ratings, while construction industry professionals can order self-ratings on their own business.

In stage 2, single- and multi-party ratings will be available, along with self-ratings. Consumers will also be able to rate construction professionals.

New South Wales building firm Ultra Building Co was the first company to receive a four-star iCIRT rating, more than 12 months ago.

Ultra Building Co managing director Adrian Sicari said the iCIRT scheme was ultimately designed to give confidence to consumers and would help consumers make better informed decisions about construction professionals selling off-the-plan apartments or new property purchases.

“It will also help them feel comfortable that their property is being delivered by a builder that cares about what they do and how they do it,” Mr Sicari said.

“People are wanting to know more and more about the track record of the builder. My team and I, we love construction. We take this thing on a piece of paper and turn it into something that people live and play in,” Mr Sicari said. In order to receive an iCIRT rating, Mr Sicari said the company’s process was heavily audited.

“We saw an opportunity to differentiate ourselves in the market. The purpose of the rating is to ensure there’s a high-quality outcome at the end,” he said.

“We document each job and make sure it conforms under the building codes of Australia. Once it’s signed off we make sure everything is installed and documented correctly.”

This was a significant milestone and helped Ultra Building Co differentiate themselves in the competitive construction industry and build a reputation for integrity and quality.

“Clients who are considering working with Ultra Building Co for their construction projects felt more confident and assured in their choice when they saw that Ultra Building Co has obtained an ICIRT rating,” he said.

“It also helped our company identify areas of risk and take steps to mitigate them, leading to improved risk management and a more resilient supply chain.”

Mr Sicari said the assessment process involved undergoing a comprehensive assessment of a business’s credibility and trustworthiness. The process took between three and four months. The star-rating is formed from an objective and independent assessment of the following core areas:

• Character — Bona fides of officers/ owners, phoenixing and adverse checks

Capability — Trading history, officeholder experience, licenses, insurances

Conduct — Track record, judgements, tax debt, incidents, penalties, undertakings

Capacity — Project pipeline, sustainable/ stable operations, liquidity, cash flow

Capital — Capital, funding, borrowing capacity, covenants, debt serviceability

Counterparties — Related parties, value chain dependencies, sustainable sourcing. He said the assessment process was comprehensive and covered a wide range of important factors in evaluating the credibility and trustworthiness of a business and its key personnel while providing a detailed and thorough analysis that can help mitigate potential risks and identify areas for improvement.

The detailed assessment evaluation process included verifying the business structure, legal entities, trading activity, and GST registration, as well as conducting checks on officeholders, shareholders, and ultimate beneficial owners. The assessment also looks at the business’ regulatory history.

In addition, the assessment requires the provision of requested disclosures and consents to contact key persons for background checks. It also requires the provision of management attestations and supporting evidence relating to projects, business and statutory obligations, compliances, insurances, performance references, and governance arrangements.

Mr Sicari said iCIRT helped to build confidence in the construction industry by promoting ethical and responsible business practices.

“Through the use of a rigorous, independent rating process, consumers can feel more secure in their choices of construction companies, and trust that they are dealing with reputable and trustworthy professionals,” he said.

“The ICIRT process also helps to reduce value impairment for new builds, minimize the risk of construction insolvencies, and decrease the likelihood of building defects in developed assets. This translates into a safer, more reliable built environment for consumers and workers alike.

“Overall, ICIRT helps to create a more positive and sustainable construction industry that benefits everyone involved.”

The iCIRT rating system came out of the Shergold Weir Building Confidence report, which was commissioned by the Australian Building Ministers’ Forum, and made recommendations to address the weaknesses identified in Australia’s compliance and enforcement systems.

As part of the NSW implementation plan –Building Strong Foundations – the Building Commissioner, David Chandler OAM, is implementing six pillars of reform.

One of these involves ratings systems and working with ratings agencies, insurers and financiers to more effectively assess industry participants and to better identify risky players in the construction industry.

Star-ratings help identify building practitioners and project teams who have a proven track record, supported by objective evidence of their capability to deliver buildings you can trust.

With iCIRT, there is a way to select toprated professionals based on unbiased and independent information about their capability, integrity and reputation.

As well as being iCIRT rated, Ultra Building Co have pursued a range of other certifications to ensure consumers and stakeholders can have utmost confidence in them.

These include:

• NSW Government Prequalification for SCM1461 for General Construction Works between $1Million-$9Million, as well as $9 Million and above.

• Complete ISO Certification:

» ISO14001 Environmental Management system

» ISO45001 OHS Management system.

» ISO9001 Quality Management system

• Registered Building Practitioner

• Independently audited for conformance with NSW Government Work Health & Safety Management Systems and Auditing Guidelines

• Greenstar Accreditation

• Federal Safety Commission Accreditation to do Federal Government-funded Projects.

“Given the Tier 1 and 2 construction business background of the ULTRA senior leadership team, the benefit of robust systems, processes and accreditations is recognised and understood,” Mr Sicari said.

“Many of these are not necessarily required for a business of the size and scale of ULTRA presently and indeed are not held by some of ULTRA’s competitors.

“However, they represent a significant and strategic early investment in business capability, differentiating ULTRA from its competitor’s, ensuring ULTRA has the right foundations for future sustainable growth and can credibly demonstrate substance and surety to future clients.”

ULTRA Building Co general manager Elliot Howse said they were dedicated to delivering high-quality projects, and they were pleased to see their efforts were being recognised in various ways.

“We are proud that our reputation as a trusted and reliable builder is gaining recognition, and we appreciate the opportunities that this recognition brings,” he said.

“We remain focused on providing the highest level of service to our clients and are excited to continue to build our reputation as a leading builder in the industry.”

As a builder, developer or construction professional, an iCIRT star-rating on your own business can help you establish credibility and confidence, by participating in an open, transparent and auditable risk assessment process by an independent and approved agency.

The system is designed to build confidence in the construction industry by improved trust and confidence in buildings and building professionals, reducing value impairment for new builds, reducing exposure to construction insolvencies, fewer building defects in developed assets, improved consumer and workplace safety, and creating more sustainable outcomes.