HIA Industry Recommendation - Private Certification

Transcription

1 to the Western Australian Government - Department Commerce on the HIA Industry Recommendation - Private Certification 27 August 2013

2 1 Introduction Private Certification Current State National Analysis Issue National State of Play Preferred approach in WA Recommendation... 4

3 HIA :: John Gelavis Acting Executive Director, WA Housing Industry Association 22 Parkland Drive OSBORNE PARK WA 6017 Phone: HIA is the leading industry association in the Australian residential building sector, supporting the businesses and interests of over 43,000 builders, contractors, manufacturers, suppliers, building professionals and business partners. HIA members include businesses of all sizes, ranging from individuals working as independent contractors and home based small businesses, to large publicly listed companies. 85% of all new home building work in Australia is performed by HIA members.

4 1 Introduction After meeting conducted on the 26 th June 2013 between HIA Acting Director (John Gelavis) and HIA President (Dean O Rourke) with the Minister on a number of housing related matters, it was agreed that HIA would provide a submission on the key factors effecting the industry and how these matters could be resolved to achieve a better outcome for the Industry and consumers. The matters discussed at this meeting were: 1. Private Certification 2. Indemnity Insurance 3. OH&S Harmonization 4. Home Building Contracts Act / Manufacturing Companies This document will focus on Private Certification. 2 Private Certification 2.1 Current State The Building Act was introduced in April 2nd 2012 with disastrous consequences with a 47% decrease in Building Approvals due to interpretation and requirements regarding certain regulations within the Act (works affecting other land). Improvements have been seen, such as the amendment to exempt an owner from the requirement under section 16 (b) of the act to sign the building application form, however HIA Builder members (Large and Small) are reporting many Local Government Authorities (LGA) are not complying with permit approval timeframes nominated within the Building Act which are 10 days for certified applications and 25 days for uncertified applications. This causes costly delays to the builder and client due to rent and land holding costs which impacts on affordability. State Government recently announced the State Housing Supply Package designed to alleviate the gap between housing supply and demand due to high population growth. Included in this was not only an increase to the Housing Grant and National Rental Affordability Scheme (NRAS) but a commitment aimed at reforming the residential planning and building approvals processes to ensure that supply responses to increased demand are not stifled by unnecessary red tape

5 It is stated in the State Budget 2013 that within the next six months, the Department of Finance s Regulatory Gatekeeping Unit will: Conduct an audit of previous reviews into planning and building approvals processes, their recommendations and implementation status; and Consult with key government and industry stakeholders to progress the outcomes of the audit and propose revised processes, roles and accountabilities that will simplify and streamline current approvals processes. The recommendation (2.2.4) in this document will be instrumental in addressing the delays identified by State Government and streamline the current approvals processes dramatically. 2.2 National Analysis It was requested at our meeting that a review be conducted into the national methodology in the area if Private Certification of which we have compiled the following information Issue Under the WA Building Legislation reforms implemented in 2012, local government authorities have retained the responsibility for granting building permits. The role of private building surveying practitioners and contractors has been limited to the provision of three types of compliance certificates which are then subject to the approval of a permit authority as part of the building permit or occupancy permit processes National State of Play Every Australian states and territory now has a form of private certification within their building legislation. However, there are differences in the operation of each system. Nationally, there is a high level of consistency regarding who can be a registered as a private building certifier. However the functions they can perform and the level of authority they have under the relevant legislation is highly variable. The generally accepted intention of allowing private building professionals to participate in building certification has been to provide an avenue for competition in the approval process and to deliver more timely and effective approvals for building work. To this end, the building approval systems in Queensland, NSW, Victoria, Northern Territory and the ACT all provide for a private building surveyor to act autonomously from the local authority, allowing them to undertake both the assessment of an application against relevant - 2 -

6 codes and standards, and to grant relevant building permits for all classes of buildings. In Tasmania, a private building surveyor can undertake post-approval functions with autonomy from the local authority. The Tasmanian and South Australian systems take a similar approach to Western Australia by limiting the role of building surveyors in the building permit process to only providing certification to a local government authority. In Victoria, the building surveyor is permitted to issue a building permit for residential applications including an assessment of the ResCode provisions to ensure that planning approval is not required. Where a minor variation is required, the building surveyor can refer just the variation to the local authority, who will approve or refuse the variation, allowing the building surveyor to retain the authority to issue the building permit. In NSW, amendments have been proposed which will allow a private building surveyor to assess a complying development application and seek council endorsement for minor variations, whilst retaining the authority to issue the complying development certificate Preferred approach in WA Following the introduction of private certification in Western Australia, the necessary framework now exists to expand the scheme to deliver further improvements in assessment times and more effectively increase competition. The Government needs to investigate the potential to: o allow private building surveyors to act as permit authorities and issue a fully operational building permit without reference to the local government authority, and o allow private building surveyors to undertake assessments on minor variations to R- Code applications and avoid requiring planning approval for those applications. State Queensland NSW Can private building certifiers/surveyors issue building approvals without reference to another authority? Private certifiers can assess and issue a building development approval acting as the assessment manager. Accredited certifiers can assess and issue construction certificates acting as a certifying authority. Can private building certifiers/surveyors issue a final occupancy permit (where needed)? May issue a final inspection certificate. (when appointed as the PCA) Do council building certifiers also perform any of these functions? provision for councils to engage private certifiers to act on their behalf when application lodged with them

7 ACT No Can only make a recommended to Constructions Occupation Registrar (& they check with plumbing and electrical) to issue occupancy permit. Victoria Private building surveyors can Can issue final inspection assess and issue building certificate and occupancy permits. permit. Tasmania South Australia Western Australia Northern Territory Building surveyors provide a certificate of likely compliance to the permit authority. Private Certifiers issue a Building Rules Consent but Council has to issue Development (building) Approval to allow work to commence. This can only be done after both planning and building consents are received. Building surveyor contractor can issue certificate of design compliance to allow permit authority (local government) to issue a building permit. Private building certifiers can issue building permits. Building surveyor can only issue occupancy permit. The final completion certificate is then issued by the permit authority. Occupancy certificates only apply to commercial and industrial buildings and must be issued by Council. Building surveyor can issue certificate of construction compliance and certificate of building compliance, which allow the permit authority to issue an occupancy permit (for buildings that require a permit). Private building certifiers can issue occupancy permits. N/A Territory can appoint certifier of last resort. N/A Territory may undertake functions Recommendation HIA believe that the government must to adopt a FULL private certification model for Building Permit Approvals ensuring Private Certifiers (as should LGA building surveyors) are able to approve building permit applications and R Code variations and issue the building permit and deposit the documents and fees with local government authorities for record keeping purposes