NCP Newsletter

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Why the need to respond to issues regarding non-conforming Why the need to respond to issues regarding non-conforming Why the need to respond to issues regarding non-conforming Why the need to respond to issues regarding non-conforming and non-compliant building products (NCPs)? and non-compliant building products (NCPs)? and non-compliant building products (NCPs)? and non-compliant building products (NCPs)?

The Building and construction industry The Building and construction industry The Building and construction industry The Building and construction industry losses an estimated $4.9 Billion per annum losses an estimated $4.9 Billion per annum losses an estimated $4.9 Billion per annum losses an estimated $4.9 Billion per annum from the importation and application from the importation and application from the importation and application from the importation and application of substandard products and services. of substandard products and services. of substandard products and services. of substandard products and services. Building and construction companies are Building and construction companies are Building and construction companies are Building and construction companies are required to repair and replace goods and or required to repair and replace goods and or required to repair and replace goods and or required to repair and replace goods and or redo services which erodes profit margin redo services which erodes profit margin redo services which erodes profit margin redo services which erodes profit margin and in some cases results in liquidation. and in some cases results in liquidation. and in some cases results in liquidation. and in some cases results in liquidation. The federal parliamentary inquiry that The federal parliamentary inquiry that The federal parliamentary inquiry that The federal parliamentary inquiry that commenced in 2015 highlighted the risks commenced in 2015 highlighted the risks commenced in 2015 highlighted the risks commenced in 2015 highlighted the risks and losses which occur from importing and losses which occur from importing and losses which occur from importing and losses which occur from importing substandard, non-conforming and nonsubstandard, non-conforming and nonsubstandard, non-conforming and nonsubstandard, non-conforming and noncompliant building products. Repairing the compliant building products. Repairing the compliant building products. Repairing the compliant building products. Repairing the 5,000 buildings that have applied the non5,000 buildings that have applied the non5,000 buildings that have applied the non5,000 buildings that have applied the nonconforming and non-compliant flammable conforming and non-compliant flammable conforming and non-compliant flammable conforming and non-compliant flammable aluminium composite panels is estimated to aluminium composite panels is estimated to aluminium composite panels is estimated to aluminium composite panels is estimated to be $3 to $5 billion alone. be $3 to $5 billion alone. be $3 to $5 billion alone. be $3 to $5 billion alone. Testing laboratories and conformity Testing laboratories and conformity Testing laboratories and conformity Testing laboratories and conformity assessment bodies (CABs) have also assessment bodies (CABs) have also assessment bodies (CABs) have also assessment bodies (CABs) have also advised that they have witnessed many advised that they have witnessed many advised that they have witnessed many advised that they have witnessed many false and doctored certifications in the false and doctored certifications in the false and doctored certifications in the false and doctored certifications in the marketplace. Builders now have to take marketplace. Builders now have to take marketplace. Builders now have to take marketplace. Builders now have to take appropriate preliminary steps to show appropriate preliminary steps to show appropriate preliminary steps to show appropriate preliminary steps to show that they have checked the certificates that they have checked the certificates that they have checked the certificates that they have checked the certificates they have received for authenticity and they have received for authenticity and they have received for authenticity and they have received for authenticity and exclusion clauses. exclusion clauses.exclusion clauses. exclusion clauses.

The insurance market is increasing The insurance market is increasing The insurance market is increasing The insurance market is increasing premiums by up to 80% per year in some premiums by up to 80% per year in some premiums by up to 80% per year in some premiums by up to 80% per year in some cases to respond to risk perceived with the cases to respond to risk perceived with the cases to respond to risk perceived with the cases to respond to risk perceived with the use of high risk non-conforming products use of high risk non-conforming products use of high risk non-conforming products use of high risk non-conforming products and non-compliant building activity in the and non-compliant building activity in the and non-compliant building activity in the and non-compliant building activity in the construction sector. construction sector.construction sector. construction sector.

One building company has become One building company has become One building company has become One building company has become insolvent and another the subject of legal insolvent and another the subject of legal insolvent and another the subject of legal insolvent and another the subject of legal proceedings. Both companies have been proceedings. Both companies have been proceedings. Both companies have been proceedings. Both companies have been subject to aluminium cladding building subject to aluminium cladding building subject to aluminium cladding building subject to aluminium cladding building rectification orders. The outcomes of rectification orders. The outcomes of rectification orders. The outcomes of rectification orders. The outcomes of legal proceedings will establish the legal proceedings will establish the legal proceedings will establish the legal proceedings will establish the benchmark on who’s liable for the cost of benchmark on who’s liable for the cost of benchmark on who’s liable for the cost of benchmark on who’s liable for the cost of cladding rectification. cladding rectification. cladding rectification. cladding rectification. Governments around the country are Governments around the country are Governments around the country are Governments around the country are responding through audits, rectification or-responding through audits, rectification orresponding through audits, rectification or-responding through audits, rectification orders and regulatory reform. Master Builders ders and regulatory reform. Master Builders ders and regulatory reform. Master Builders ders and regulatory reform. Master Builders has established a national committee to has established a national committee to has established a national committee to has established a national committee to coordinate advocacy across the member coordinate advocacy across the member coordinate advocacy across the member coordinate advocacy across the member network on NCPs and building regulation. network on NCPs and building regulation. network on NCPs and building regulation. network on NCPs and building regulation.

What’s happened? What’s happened? What’s happened? What’s happened?

Master Builders established Master Builders established Master Builders established Master Builders established national register and product national register and product national register and product national register and product the national Non-Conforming the national Non-Conforming the national Non-Conforming the national Non-Conforming auditing; national licensing, auditing; national licensing, auditing; national licensing, auditing; national licensing, and Non-Compliant Building and Non-Compliant Building and Non-Compliant Building and Non-Compliant Building greater coordination and a greater coordination and a greater coordination and a greater coordination and a Products (NCP) Committee in Products (NCP) Committee in Products (NCP) Committee in Products (NCP) Committee in national approach; greater national approach; greater national approach; greater national approach; greater August 2017. The Committee August 2017. The Committee August 2017. The Committee August 2017. The Committee accountability across the accountability across the accountability across the accountability across the has been contributing to policy has been contributing to policy has been contributing to policy has been contributing to policy supply chain; better availability supply chain; better availability supply chain; better availability supply chain; better availability advocacy and coordinating advocacy and coordinating advocacy and coordinating advocacy and coordinating of standards; director of standards; director of standards; director of standards; director action across the Master action across the Master action across the Master action across the Master identification numbers for identification numbers for identification numbers for identification numbers for Builders network. During this Builders network. During this Builders network. During this Builders network. During this illegal phoenixing, increasing illegal phoenixing, increasing illegal phoenixing, increasing illegal phoenixing, increasing period the Committee has led period the Committee has led period the Committee has led period the Committee has led protection for end-users; and protection for end-users; and protection for end-users; and protection for end-users; and the development of policy the development of policy the development of policy the development of policy a greater role for the Federal a greater role for the Federal a greater role for the Federal a greater role for the Federal principles around NCPs; and principles around NCPs; and principles around NCPs; and principles around NCPs; and Safety Commissioner. Safety Commissioner.Safety Commissioner. Safety Commissioner. the Master Builders response to the Building Ministers Building Confidence report into compliance and enforcement in the building regime. the Master Builders response to the Building Ministers Building Confidence report into compliance and enforcement in the building regime. the Master Builders response to the Building Ministers Building Confidence report into compliance and enforcement in the building regime. the Master Builders response to the Building Ministers Building Confidence report into compliance and enforcement in the building regime. Both the Coalition Government and Labor Opposition broadly support the recommendations from the parliamentary inquiry. Most of the recommendations Both the Coalition Government and Labor Opposition broadly support the recommendations from the parliamentary inquiry. Most of the recommendations Both the Coalition Government and Labor Opposition broadly support the recommendations from the parliamentary inquiry. Most of the recommendations Both the Coalition Government and Labor Opposition broadly support the recommendations from the parliamentary inquiry. Most of the recommendations Since the Master Builders NCP Since the Master Builders NCP Since the Master Builders NCP Since the Master Builders NCP have been picked up in the have been picked up in the have been picked up in the have been picked up in the Committee was established, the Committee was established, the Committee was established, the Committee was established, the Building Minsters report, Building Minsters report,Building Minsters report, Building Minsters report, federal parliamentary inquiry federal parliamentary inquiry federal parliamentary inquiry federal parliamentary inquiry Building Confidence: Improving Building Confidence: Improving Building Confidence: Improving Building Confidence: Improving handed down its response handed down its response handed down its response handed down its response the effectiveness of compliance the effectiveness of compliance the effectiveness of compliance the effectiveness of compliance to concerns around NCPs. It to concerns around NCPs. It to concerns around NCPs. It to concerns around NCPs. It and enforcement systems for and enforcement systems for and enforcement systems for and enforcement systems for recommended a number of recommended a number of recommended a number of recommended a number of the building and construction the building and construction the building and construction the building and construction measures, including: banning measures, including: banning measures, including: banning measures, including: banning industry across Australian, industry across Australian, industry across Australian, industry across Australian, polyethylene core aluminium polyethylene core aluminium polyethylene core aluminium polyethylene core aluminium released in February 2018. released in February 2018. released in February 2018. released in February 2018. cladding products; mandatory cladding products; mandatory cladding products; mandatory cladding products; mandatory Master Builders made Master Builders made Master Builders made Master Builders made third party certification; a third party certification; a third party certification; a third party certification; a submissions to both processes. submissions to both processes. submissions to both processes. submissions to both processes.

MBA in responce to the parliamentary inquiry report has advocated for: Consistency and simplification of state and territory laws. Reasonable, practical and fair shared responsibility provisions. Registration of trade contractors. Better pathways for testing and verifying products (product certification, registration, labelling). Accountability across the supply chain (those who specify buildings - architects, designers, engineers). Clear requirements for design documentation and building certification. Better regulator feedback on failures in the system. Improved readability and access to referenced standards.

The Building Confidence report makes a number of recommendations calling for national consistency around registration and training of practitioners (builders but not tradesmen); mandatory point in time inspection; measures to strengthen independence of builders and building surveyors; improving the quality of design and construction information; and provision of broad powers for building regulators to audit building work and take effective compliance and enforcement action.

Master Builders response to the Building Confidence report is focusing on recommendations that:

Recognise the value chain in applying requirements for design practitioners. Establish clearer requirements for project documentation. Apply a focus on best practice in building inspection, education and training. Develop a centralised information source on products. Produce a national dictionary of building terminology.

Master Builders CEO Denita Wawn has been appointed to an industry reference group that is reporting directly to Building Ministers on the implementation of the Building Confidence report. At the first meeting of the reference group, Master Builders led debate on key areas that BMF has agreed to focus on immediately. These include recommendations around:

Registration, licensing and training. Measures for building surveyors. Responsibility of design practitioners (engineers and architects). States and Territories are continuing their respective cladding audits, issuing rectification orders, and introducing regulatory reforms that introduce chain of responsibility obligations or that ban/restrict use of ACPs. All states and territories have committed to restricting the use of aluminium cladding on buildings. NSW has taken the strongest action by imposing a building product use ban that prohibits the use of aluminium composite panels with a core comprised of greater than 30 per cent polyethylene by mass in any external cladding, external wall, external insulation, façade or rendered finish in certain multi storey buildings, subject to specific exceptions. The 2016 National Construction Code (NCC) includes an out of cycle amendment that clarifies concessions for bonded laminate materials and introduces a new standard for wall assembly testing. The 2019 NCC removes deemed to satisfy concessions for bonded laminate materials.

To assist industry to better understand processes available

to verify the suitability of materials, the Australian Building Codes Board has produced an Evidence of Suitability Handbook. The Handbook is a non-mandatory guide that includes references on what tools can be used to demonstrate product compliance. The Handbook is available at: http://www.abcb.gov.au/Resources/Publications/EducationTraining/Evidence-of-Suitability Master Builders Queensland is leading work with support from national office on testing product information templates in the ABCB Evidence of Suitability Handbook with product manufacturers and suppliers; certifiers and other industry stakeholders. The expectation is for Master Builders to establish partnerships with key parties in the chain of responsibility on a standard form of required information and a practical industry response to improving compliance. Chemistry Australia members, for example, are developing product technical statements in consultation with MBA on polyurethane foam products such as sandwich and insulation panels.

Other activities and tools being developed to assist in sourcing better product and checking authenticity of products, include: Master Builders NSW, national office and JASANZ are engaged in a pilot program testing materials and information available on a global product market place for certified products. This involves consultation with product manufacturers and suppliers and builders and free access for the member network to the business services offered in this marketplace. The link to the product marketplace for further information is: https://www.qualitytrade.com NATSPEC has launched a National Construction Products Register that provides a tool for all industry parties to check verification of authenticity of product conformance certificates. Around one thousand products are listed on the webpage. Refer to the NCPR website for more information: http://www.ncpr.com.au

Where to next

Master Builders is continuing to engage with Government on audit and reform activity including the following: Building Ministers implementing recommendations in the Building Confidence report over the next three years. Standards Australia development of a labelling standard for aluminium cladding products. The Building Regulatory Forum (reporting to Building Ministers) review of state and territory responsibilities for rectification of non-compliant building work. Senior officials (reporting to Building Ministers) developing options for an Australia-wide approach on professional indemnity insurance. Master Builders is working with product manufacturers/suppliers and others in the building and construction supply chain to develop a consistent view on what’s needed in product technical statements. Master Builders will continue to seek feedback through the national NCP committee and broader member network on the impact of building regulation policy and regulatory change on the sector.

The Top Five TECHNOLOGY TIPS for your Small Business

The everchanging world of technology can be overwhelming when choosing what software, social media, applications and devices you might need for your small business. Knowing what technology can assist your business to reach full operating capacity is a difficult task. We have found some tips on technology that could be the key to success for your small business.

TIP 1 CLOUD STORAGE

Being able to access documents on the go is an essential for small businesses when it comes to meetings. Cloud storage has many advantages in small businesses, including accessibility, as you can access files from anywhere as long as you have an internet connection. Along with ease of accessibility, files can be sent through a link, rather than a document in emails.

TIP 2 WEARABLE TECHNOLOGY

The evolution of wearable technology has come a long way in recent years, Smartwatches are now a way of the future and can even be used to benefit your small business. Smartwatches have a multitude of uses within the workplace and can be used to:

Remind you of upcoming meetings Receive relevant industry news straight to your Smartwatch Receive emails and calendar alerts on the go

TIP 3 APPLICATIONS

Some incredible applications have been designed to assist you in the day to day issues that you might face within your business. From applications that can schedule your social media posts months in advance to a basic graphic design source, you can find a variety of applications to assist your businesses needs.

Some helpful applications to get you started:

Canva – An easy to use application which proves to be a great source for creating flyers, presentations, posters, logos and more. Canva allows you to use your own images or you can choose from a variety available on the website.

Hootsuite – A brilliantly simple social media management tool which allows you to schedule your content in advance, making it easier for you to focus on other areas of the business while reaching your target audience. Hootsuite connects with a variety of social networks including

Instagram, Facebook, Twitter, LinkedIn and YouTube.

Asana – A great tool to use within small businesses to organise workflow, assign projects and organise meetings.

TIP 4

SOCIAL MEDIA

Social media has allowed small businesses to create their own online presence and use platforms to market their businesses. However, not every social media platform is suitable for all small businesses. Discovering where your market is and what type of content, they want to see is essential to small businesses. Some social media channels where your main market may be are:

Instagram Facebook

Twitter

LinkedIn

YouTube

It may not be necessary for your business to have all of these channels, instead it could be beneficial to focus time and energy into a few, in order to grow your target audience and in turn, your customer base. Which leads to the next tip… how to find your target audience using analytics.

TIP 5 ANALYTICS

Social media is a key force in reaching your target audience, but how do you know who your target audience is and if your messages are reaching them? The answer is analytics. When using social media platforms such as Facebook and Instagram, it’s a great idea to invest some time in learning the full potential of using analytics. Some of the great information analytics allows you to discover about your audience is:

Which demographic is ‘liking’ your page in terms of age, gender and location.

The length of time users are spending on your website or social media pages.

The type of content users are engaging with on social media through likes comments and shares. Generally, analytics tools are free, making it a great addition for small businesses to utilise in order to reach their target audience.