our services...three business days. this section details the qbcc’s performance for 2016-2017 in...

QBCC ANNUAL REPORT 2016-2017 | 35

OUR SERVICES

Customers’ needs and expectations of the QBCC are constantly evolving. In the past 12 months, the QBCC implemented a number of changes to make it easier for our customers to access our service. The changes included:

• creating the ability for QBCC customers to purchase Queensland Home Warranty Insurance through the self-service portal, myQBCC, on 31 October 2016. The service is available through any device 24 hours 7 days a week.

• launching a new way to submit Notifiable Work forms and make payments through myQBCC, on 26 April 2017. This also included giving local governments access to search and audit Notifiable Work. To help our customers make the best use of the system, the QBCC created resources to guide users through the system. This new system replaces the previous Plumbing Application System (PAS). Feedback from the industry has been positive.

• moving from a concierge system to an Interactive Response System (IVR) in our contact centre in October 2016. The IVR has allowed QBCC to tailor information options specific to our customers’ needs. The IVR also allows our customers to record after-hours voicemails, which we will reply to within three business days.

This section details the QBCC’s performance for 2016-2017 in relation to the delivery of our services.

CUSTOMER SERVICE

Industry feedback on the new way to submit Notifiable Work forms.

In 2016-2017, we answered 203,805 calls, with 18,191 calls answered outside of the QBCC’s normal business hours, including weekends.

36 | QBCC ANNUAL REPORT 2016-2017

CUSTOMER CONTACT CENTRE STATISTICS OVER THE PAST FIVE YEARS

Financial year Customer phone calls Customer emails

2012-2013 179,675 4,594

2013-2014* 176,698 7,175

2014-2015 216,155 5,859

2015-2016 222,097 7,833

2016-2017 221,996 10,842

*Between 1 July 2013 and 30 November 2013 the statistics relate to the former authority (QBSA). Statistics between 1 December 2013 and 30 June 2017 relate to activities of the QBCC. The statistics have been reported together to allow for trend analysis.

TABLE 12

USING BEHAVIOURAL ECONOMICS TO IMPROVE THE WAY WE COMMUNICATE QBCC has engaged Decision Design to work alongside our Behaviour and Design Team to advise on methods and correspondence to support the QBCC, and improve how we communicate. This body of work is undertaken to help customer interactions with the QBCC be more effective, reducing customer frustrations.

Some examples of the work done so far include:

• Residential and Commercial Construction Work Complaint form - review undertaken and business requirements provided. Changes will reduce work for the QBCC.

• outward-facing correspondence - piloting changes to correspondence by applying behavioural economics, making us more effective in our communication and more successful at impacting customer behaviour.

• customer acknowledgement email - re-written to ensure customers understand the information required to enable complaints to be processed.

• building inspection touch points - applying behavioural economics to influence change for a better outcome between our customers and the QBCC.

• licence application process – rewritten to ensure customers understand the information required to enable their applications to be processed as quickly as possible.

• QBCC homepage – developing recommendations to improve our communication to help our customers better understand our processes.


WORKING TO DELIVER MORE EFFICIENT SERVICES FOR OUR CUSTOMERS The QBCC aims to offer its services to the community with the end goal of delivering a better and more efficient service for our customers.

In April 2017, the Multi-Disciplinary Team (MDT) Pilot Project commenced in the Brisbane and Sunshine Coast offices. The MDTs are functional business units that include a range of currently separated business functions.

The MDTs will be piloted for a period of 12 months and aim to help the QBCC to:

• achieve a better balance in the way the QBCC communicates and corresponds

• improve timeframes for customers and clients regarding their case resolution

• decrease the number of hand-offs and touch points to facilitate improved service delivery

• increase transparency, consistency and equity in decisions that are made for customers and the industry

• proactively identify risks that potentially impact the building and construction industry

• increase efficiencies across the business (both financial and operational)

• test and refine a framework(s) to help support the organisational transformation over the next three to five years.


SOCIAL MEDIA AND WEBSITE PERFORMANCE The QBCC continues to reach out to the community using social media and our website. This ensures that we are able to more effectively engage with our customers.

In 2016-2017, the QBCC recorded the following:

TOTAL 15,136 subscribers

5,265,016 impressions

61% increase from 2015-2016 -16�90% from 2015-2016

QBCC’s website performance

8,945,570 page views

In 2016-2017, the QBCC website recorded 8,945,570 page views, a decrease of 32.6 per cent from 2015-2016. The decrease could be due to the highly successful 2015-2016 pool safety standard campaign launched in November 2015, which included television and radio commercials. This campaign brought significant traffic to the QBCC website in the 2015-2016 period.

The QBCC had 15,136 social media subscribers in the reporting period, which is a 61 per cent increase compared to 2015-2016.

Instagram

4,110 SUBSCRIBERS

206% increase from 2015-2016

Google+

116 SUBSCRIBERS

13�70% increase from 2015-2016

Facebook

6,453 SUBSCRIBERS


1,339,538 IMPRESSIONS

-25% from 2015-2016

Twitter

1,652 SUBSCRIBERS


3,287,978 IMPRESSIONS

-19�75% from 2015-2016

YouTube

277 SUBSCRIBERS


40,879 IMPRESSIONS


LinkedIn

2,528 SUBSCRIBERS


596,621 IMPRESSIONS



The QBCC provides licensing services to a range of customers in the building and construction industry including those in the service trades. The table below shows the number of QBCC licensees as at 30 June 2017.

LICENSING

QBCC LICENSEES AS AT 30 JUNE 2017

Individual Company Total

Builder 26,139* 8,438 34,577*

Builder restricted 2,362* 656 3,018*

Trade contractor 40,522* 9,518 50,040*

Fire occupational 1,376* N/A 1,376*

Certifier 453 N/A 453

Plumbing (occupational only) 8,198 N/A 8,198

Pool safety inspectors 697 N/A 697

Total 79,747* 18,612 98,359*

* The numbers include both nominees and supervisors.

TABLE 13

The QBCC also processes mutual recognition licence applications from interstate licence holders seeking a QBCC licence to work in Queensland. During the reporting period, the QBCC received 644 mutual recognition applications.

NEW LICENSING REQUIREMENTSThere were only minor changes to the legislation this financial year. Farm fencing was amended to allow owners to build fences if the fence is constructed on agricultural or pastoral land regardless of its value.


The QBCC administers a home warranty scheme that provides insurance cover for residential construction work in Queensland. The scheme protects home owners from loss where the licensed contractor does not complete the contracted works or fails to rectify defective work.

During 2016-2017, the QBCC processed 105,256 insurance policies. The breakdown of residential construction work carried out during the period was 67 per cent alterations and additions compared to 33 per cent new home construction.

QUEENSLAND HOME WARRANTY SCHEME

NUMBER OF POLICIES ISSUED OVER THE PAST FIVE YEARS


**As at 28 October 2016, the type of work covered by the Queensland Home Warranty Scheme was expanded. The introduction of cover for manufactured homes, which was previously excluded, resulted in an increase in policies covered under the “New construction” data. The introduction of cover for swimming pools and additional work within the envelope of the building, resulted in an increase in policies covered under the “Alteration/Addition” data.

In 2016-2017, the QBCC received $96.2 million in insurance premiums compared to $107.4 million in 2015-2016. This was due to changes to premiums on 28 October 2016, where premiums for the majority of consumers were reduced, thus affecting premium income to QBCC.

The QBCC approved a total of $45.1 million in insurance claim costs during 2016-2017. This included $22.1 million for defects claims, $17.0 million for non-completion claims and $6 million for subsidence claims. The graph on the next page provides a historical view of insurance claims approved by type under the scheme over the past five years.

20,000

80,000

100,000

120,000

2012-2013 2013-2014* 2014-2015 2015-2016 2016-2017**

Alteration/Addition

New construction

60,000

40,000

-

25,815

49,011

28,503

51,299

30,913

56,907

32,850

61,972

35,005

70,251


INSURANCE CLAIM APPROVALS BY TYPE OVER THE PAST FIVE YEARS

To ensure a solid financial framework for its insurance operations, the QBCC has continued to comply with various Australian Prudential Regulatory Authority (APRA) standards that apply to general insurers to the extent that it is reasonable and prudent for the QBCC to do so, including a prudential margin loading in relation to projected future claims to achieve the APRA requirement of a 75 per cent confidence level that the outstanding claims provisions will be adequate.

The QBCC may be able to help where there are building disputes between home owners and principal contractors where the situation has come to a standstill. During 2016–2017, these types of building disputes totalled 5,543, of which 4,015 related to works after the construction was completed and 1,528 which were during the construction process. This represented a decrease of 1.3 per cent from 2015-2016 which totalled 5,616 building disputes.

BUILDING COMPLAINTS AND DISPUTES

COMPLAINTS AND DIRECTIONS OVER THE PAST FIVE YEARS


5,000,000

-2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

Non-completion

Subsidence

Defects10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

2,000

1,000

-

3,000

4,000

5,000

6,000

2012-2013 2013-2014* 2014-2015 2015-2016 2016-2017

Complaints

Directions865

4,843

3,894

4,793

3,927 4,015

734 709 855 813


5,000,000

-2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

Non-completion

Subsidence

Defects10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

In the reporting period, the most common defect complaint related to Joinery.

TEN MOST COMMON BUILDING DEFECTS IN 2016-2017

Ranking Total

Joinery 1 538

Roof cladding 2 460

Tiling (floor) 3 435

Wet areas (waterproofing membranes internal) 4 305

Painting - internal 5 304

Linings (wall internal) 6 271

Painting - external 7 254

Tiling (wall) 8 207

Linings (ceiling internal) 9 199

Linings (wall external) 10 196

TABLE 14

EARLY DISPUTE RESOLUTION In situations where there are disputes between QBCC principal contractors and home owners, the QBCC offers a free Early Dispute Resolution (EDR) service. This service is for domestic building work in excess of $3,300 where concerns regarding defective building work, non-completion and contractual issues arise prior to completion of the contract.

During 2016-2017, the QBCC received 1,528 EDR cases, with 1,522 finalised during the reporting period. This is a 9 per cent decrease compared to 2015-2016, where 1,689 cases were received.

PROACTIVE BUILDING INSPECTIONS The QBCC conducts proactive audits of building works under construction to assess compliance against the National Construction Code and relevant Australian Standards. Where non-compliance is noted, builders are encouraged to rectify the defective work to avoid

further action by the QBCC. Builders are finding they are better placed to have the responsible subcontractors remedy their defective works while they are still onsite and while retention funds are in place.

In 2016-2017, the QBCC focussed on auditing multi-residential buildings (both townhouses and high-rise constructions) as part of our annual Statewide program of auditing works.

The QBCC also performed audits on single detached dwellings and a variety of issues have been found such as:

• missing waterstops at wet area doorways and under the rims of island baths

• framing anchors being inappropriately secured

• incorrect fixing of wet area wall sheeting being finished with wall tiles

• incorrect fixing of garage plasterboard ceiling sheets.

In 2016-2017, the QBCC inspected 1,562 sites involving 3,988 residential units. The QBCC continues to receive strong support for this proactive initiative from builders and contractors.


To strengthen and grow the building and construction industry, the QBCC implemented the Minimum Financial Requirements (MFR) policy in 2014. It allows the QBCC to cancel a licence in the event that a licensee does not pay all undisputed debts within industry or agreed trading terms. Whilst the QBCC cannot prevent collapses within the industry, it can assist subcontractors and other industry participants to get paid through conducting investigations into monies owed. As part of the new Board’s focus to ensure the policy frameworks are appropriate, the Board commenced a review of the MFR policy.

ACTIVITIES UNDER THE MINIMUM FINANCIAL REQUIREMENTS (MFR) POLICY Under the MFR policy, the QBCC undertook 347 non-payment of debts investigations, resulting in the suspension of 102 licences and the cancellation of 39 licences. The QBCC also conducted audits resulting in another 101 licences suspended, and another 56 licences cancelled. Since the introduction of the MFR policy in October 2014, the QBCC has recovered $17,339,446.58 for creditors

FINANCIAL INVESTIGATIONS

FINANCIAL INVESTIGATIONS - ACTIVITIES UNDER MFR POLICY

2016-2017

Financial audits 484

Non-payment of debt investigations 347

Suspension – non-payment of debt 102

Suspension – non-compliance with audit 63

Suspension – not meeting MFR 38

Cancellation – non-payment of debt 39

Cancellation – non-compliance with audit 33

Cancellation – not meeting MFR 23

TABLE 15


LICENCE SUSPENSIONS AND CANCELLATIONS The QBCC assesses a licensee’s entitlement to hold a licence and where appropriate, imposes exclusions, disqualifications and bans on individuals and companies.

There were 85 companies and 123 individuals excluded from holding a QBCC contractor or nominee supervisor licence due to their involvement in a financial failure during the period. Permanent exclusion was imposed on 33 individuals for their involvement in a second financial failure.

There were 15 contractor licences immediately suspended due to insolvent trading or other serious risk.

LICENCE SUSPENSIONS AND CANCELLATIONS OVER THE PAST FIVE YEARS


50

2012-2013 2013-2014* 2014-2015 2015-2016 2016-2017

Company licences cancelled due to exclusion

Permanent exclusions

Individual licences cancelled due to exclusion100

150

200

250

300

0 Immediate suspension

283

192

162152

123139

9979 85 85

123

80

44 36 33

8 8 13 14 15

IMPROVED EFFECTIVENESS OF BUILDING LAWS

During 2017–2018 it is expected that QBCC will be able to apply new powers.

The Minister for Housing and Public Works and the Minister for Sport, the Honourable Mick de Brenni MP, introduced a bill in Parliament in May 2017

with the Act expected to commence in 2017–2018. The Act is anticipated to provide new powers – including allowing QBCC to suspend or cancel a builder’s licence who

fails to ensure the safety of workers and who exposes workers to risk.


The QBCC investigates complaints made by consumers, contractors and other industry participants in order to support a fair playing field for Queensland licensees by identifying and penalising unlawful operations. The QBCC also carries out proactive audits and investigations to detect unlicensed contracting and other breaches of legislative requirements.

LICENSING AUDITS To ensure a level playing field, the QBCC utilises its Licensing Audit Program to target unlicensed

contracting, with the aim to rid the industry of unscrupulous operators and to penalise unlawful operations.

The Licensing Audit Program targets random building sites, all types of building work, in all areas of Queensland. The QBCC believes the program is an effective tool in assisting to reduce the rate of unlicensed contracting. The audits will continue to be undertaken randomly to allow the QBCC to objectively assess the level of unlicensed contracting in the industry.

In 2016-2017, the QBCC conducted 4,529 individual compliance interviews on 1,293 sites. From these interviews, 74 incidences of suspected unlicensed contracting were detected. The rate of unlicensed contracting as detected was 1.63 per cent during the reporting period.

COMPLIANCE AND ENFORCEMENT

LICENSING AUDITS OVER THE PAST FIVE YEARS

2012-2013 2013-2014* 2014-2015 2015-2016 2016-2017

Interviews conducted 6,972 7,667 5,533 4,145 4,529

Suspected number of unlicensed contractors

62 98 145 69 74

Percentage of unlicensed contractors 0.89% 1.28% 2.62% 1.66% 1.63%


TABLE 16

REPAIR WORK AFTER CYCLONE DEBBIE

In the aftermath of Cyclone Debbie, the QBCC set up online registers on its website for local, licensed contractors who

may be able to help with repair work.

The QBCC also sent extra building inspectors to cyclone-affected areas to oversee repair work on homes and properties.


CONTRACTUAL INVESTIGATIONSSchedule 1B of the QBCC Act regulates contracts for domestic building work between contractors and home owners. Part 4A of the QBCC Act regulates subcontracts between contractors and builders and commercial contracts. The QBCC examines suspected breaches and when required, takes appropriate action in the circumstances, including issuing an infringement notice.

Where the QBCC has reasonable concerns that a licensee has not been complying with the requirements of the QBCC Act, it may conduct an audit requiring the licensee to produce all contracts for review by the QBCC.

CONTRACTUAL INVESTIGATIONS OVER THE PAST FIVE YEARS

2012-2013 2013-2014* 2014-2015 2015-2016 2016-2017

DBCA+QBCC

Act Part 4

DBCA+QBCC

Act Part 4

DBCA+QBCC

Act Part 4A

Domestic Contract

QBCC Act Part

4A

Domestic Contract

QBCC Act Part

4A

Audits 5 0 3 0 0 0 1 2 0 0

Investigations 310 38 346 54 265 21 283 33 468 34

Warnings issued 25 0 22 0 20 0 54 6 164 7

Contractors issued with an infringement notice

163 21 114 2 155 8 145 6 300 4

Infringement notices issued

297 25 182 2 235 10 157 10 305 5


+ The Domestic Building Contracts Act 2000 (DBCA) regulated contracts for domestic building work between contractors and home owners prior to 1 July 2015 when it was repealed and replaced by Schedule 1B. In some instances DBCA offences could continue to be investigated after the DBCA was repealed.

TABLE 17


DEMERIT POINTS ISSUED TO CONTRACTORS FOR BREACHES OF LEGISLATION During 2016-2017, 516 contractors had demerit points listed against their records. A total of 5,342 demerit points were issued, which included 2,438 demerit points issued for contractual offences, 2,166 demerit points issued to contractors for failing to rectify defective building work and 70 demerit points issued for unsatisfied judgment debts.

DEMERIT POINTS ISSUED OVER THE PAST FIVE YEARS

2012-2013 2013-2014* 2014-2015 2015-2016 2016-2017

Demerit points issued for unsatisfied judgment debts

730 698 300 40 70

Demerit points issued for contractual offences 452 424 462 342 2,438

Demerit points issued for failure to rectify 430 408 374 1,114 2,166

Demerit points issued for failing to pay insurance premium

206 176 154 234 334

Demerit points issued for carrying out work without a nominee

4 0 2 0 0

Demerit points – other - - - 112 334

Contractors issued with demerit points 372 385 367 275 516

Total demerit points issued 1,822 1,706 1,292 1,842** 5,342

*Between 1 July 2013 to 30 November 2013 the statistics relate to the former authority (QBSA). Statistics between 1 December 2013 and 30 June 2017 relate to activities of the QBCC. The statistics have been reported together to allow for trend analysis.

** In the 2015-2016 Annual Report, it was reported that the total demerit points issued for the 2015-2016 year was 1,730. It should have read 1,842 as other demerit points issued during the reporting period were erroneously excluded.

TABLE 18

CERTIFIER COMPLIANCE As at 30 June 2017, there were 453 licensed building certifiers.

At the start of the reporting period, the QBCC had 26 open certifier complaints. An additional 164 complaints were received during 2016-2017. During the reporting period, the QBCC finalised 149 complaints, with 41 remaining open at 30 June 2017.

During the reporting period, the QBCC also commenced 79 technical audits and 68 assessment audits. The certification team finalised 91

technical audits and 66 assessment audits over the 12 months. As at 30 June 2017 there were two technical audits and six assessment audits still underway.

Of the 306 completed investigations (including complaints, technical and assessment audits) undertaken in 2016-2017, 55 certifiers were found to have engaged in unsatisfactory conduct, one certifier was found to have engaged in professional misconduct, 66 complaints were either withdrawn or closed due to insufficient evidence, and in 162 cases the certifier’s conduct was

found to be satisfactory. 22 cases were duplicates or involved a certifier who was no longer practising.


CERTIFIER COMPLIANCE AND COMPLAINTS RECEIVED OVER THE PAST FIVE YEARS

DEBT RECOVERYThe QBCC holds licensees responsible for monies owed as a result of claims made against the Queensland Home Warranty Scheme as well as Magistrates Court and Queensland Civil and Administrative Tribunal (QCAT) penalties.

The QBCC recovered $1.76 million in 2016-2017, including $1.59 million recovered for the Queensland Home Warranty Scheme.

During the reporting period, there was $5,500 recovered for QCAT penalties and $155,903 for Magistrates Court penalties.

In 2016-2017, 65 debtors were referred to the QBCC’s Debt Recovery Legal Panel for new legal recovery action. Legal recovery action accounted for $223,509 of all recovery for the Queensland Home Warranty Scheme during the reporting period.

Recovery of Magistrates Court fines is the responsibility of the State Penalties Enforcement Registry (SPER).

FUNDS RECOVERED OVER THE PAST FIVE YEARS


180

160

140

120

100

80

60

40

20

02012-2013 2013-2014* 2014-2015 2015-2016 2016-2017

Reprimands issued

Direction - enforcement action and ensure certification

Licence condition imposed

Certifier complaints received

$2,500,000

$1,000,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

2012-2013 2013-2014* 2014-2015 2015-2016 2016-2017

QCAT penalties

Insurance claims

$2,000,000

$1,500,000

$500,000

$0 Magistrates Court

$628,388$38,816$2,369,690

$76,809$99,999$4,014,370

$75,324$45,368$1,973,867

$34,773$6,490$2,225,238

$155,903$5,500$1,591,031

$3,036,894

$4,191,179

$2,094,559$2,266,501

$1,752,434

*Between 1 July 2013 to 30 November 2013 the statistics relate to the former authority (QBSA). Statistics between 1 December 2013 and 30 June 2017 relate to activities of the QBCC. The statistics have been reported together to allow for trend analysis.


The Adjudication Registry (the Registry) was established under the Building and Construction Industry Payments Act 2004 (BCIP Act). The BCIP Act was introduced to improve payment dispute outcomes in the building and construction industry, and applies to any contracts entered into on or after 1 October 2004.

The BCIP Act provides persons who have carried out construction work or who have supplied related goods or services under a construction contract with an entitlement to progress payments. It also establishes a rapid adjudication process to facilitate prompt recovery of outstanding amounts. The BCIP

Act provides an alternative means to obtaining payment to the traditional legal and civil options.

As at 30 June 2017, there were 113 adjudicators registered under the BCIP Act.

ADJUDICATION REGISTRY

ADJUDICATION REGISTRY CLAIMED STATISTICS FOR 2016-2017

Total value of claims $110,480,289

Maximum claim $11,414,395

Minimum claim $100

Average claim $179,935

TABLE 19

OVERVIEW OF REGISTRY OUTCOMES FOR 2016-2017

% OF CLAIMANTS RECEIVING FULL CLAIM AMOUNT

60%

50%

40%

30%

20%

10%

0%$0-

$4,999.99$5,000-

$9,999.99$10,000-

$24,999.99$25,000-

$39,999.99$40,000-

$99,999.99$100,000-

$249,999.99$250,000-

$499,999.99$500,000-

$749,999.99>$750,000

50.00% 54.55% 39.68% 34.48% 17.39% 17.14% 23.81% 0.00% 11.11%


ADJUDICATION REGISTRY DECISION STATISTICS

Total value of claims – decision released $1,084,167,871

Maximum claim value – decision released $994,812,693

Minimum claim value – decision released $183

Average claim value – decision released $3,578,112

Total value of adjudicated amount – decision released $648,109,051

TABLE 20

Note: A claim valued at $994,812,693 was lodged in 2015–2016. The claim was decided in 2016–2017 (12 July 2016) for the adjudicated amount of $600,638,513.

LODGEMENT AND ALLOCATION OF ADJUDICATION APPLICATIONSAdjudication applications can be lodged at the Registry over the counter at any QBCC office, by mail, by fax and online. As at 30 June 2017, 614 applications were lodged at the Registry. 598 of the applications represented standard claims (claims for less than $750,000 excluding GST) and the remaining 16 applications were complex claims (claims for more than $750,000 excluding GST).

Since BCIP Act amendments commenced on 15 December 2014, the Registry has processed and assessed adjudication applications as per the ‘Adjudicator Grading and Referral Policy 2015’ to determine a suitable adjudicator to refer the application to. Once referred to an adjudicator, the adjudicator is required to complete forms relating to conflict of interest, rate agreement, delivery of application, and if applicable, agent nomination, before the Registry will confirm the referral.

The Registry has no further involvement with the progression of an application until the adjudicator makes a decision.

ADJUDICATION DECISIONS The Registry relies upon the cooperation of adjudicators in providing it with critical information so as to enable the monitoring of adjudicators and publishing of key statistics and all adjudication decisions.

Following the adjudicator’s release of the decision to the claimant and respondent, the adjudicator is requested to notify the Registry and to provide the Registry with a copy of the decision. The Registry then publishes the decision on the QBCC’s website.

The average time for a standard claim, from lodgement of application to a decision being made, is 19 days.

The average time for a complex claim, from lodgement of application to a decision being made, is 71 days.

ADJUDICATION FEESThe Registry imposes a fee for lodging an adjudication application which operates on a sliding scale. The fees range from $53.55 for payment claims that are $10,000 or less (excluding GST) to 0.07 per cent of the claimed amount for claims higher than $1 million (but not more than $5,356.15).


The Registry has developed a schedule of recommended reasonable fees for both standard and complex claims to provide guidance to adjudicators. In the 2016-2017 year, fees for adjudication (that is, lodgement fees plus adjudicators fees) totalled $2,819,959. The maximum total fee for adjudication was $580,175 and the minimum total fee was $52. The average fee for adjudication was $9,400. Fees for adjudicators are paid directly to them by the parties involved.

ADJUDICATION FEE STATISTICS 2016-2017

Average Fees Average fee as a percentage of claim

Range of Claims YTD Total Respondent Claimant Total Respondent Claimant

$0 - $4,999�99 40 $648 $412 $183 40.76% 67.50% 32.50%

$5,000 - $9,999�99 33 $953 $627 $273 11.60% 69.70% 30.30%

$10,000 - $24,999�99 63 $1,575 $951 $467 7.91% 66.51% 33.49%

$25,000 - $39,999�99 29 $3,068 $2,220 $688 8.76% 70.34% 29.66%

$40,000 - $99,999�99 46 $5,225 $2,864 $2,114 7.08% 56.85% 43.15%

$100,000 - $249,999�99 35 $7,915 $4,909 $2,634 4.82% 64.14% 35.86%

$250,000 - $499,999�99 21 $14,717 $10,063 $4,175 3.58% 71.67% 28.33%

$500,000 - $749,999�99 15 $15,784 $11,590 $3,607 2.30% 68.67% 31.33%

> $750,000 18 $83,953 $39,493 $41,996 2.06% 48.06% 51.94%

TABLE 21

ADJUDICATOR QUALIFICATION COURSEIn 2016-2017, 24 people applied to undertake training wishing to become registered as an adjudicator under the BCIP Act. Nineteen people have successfully completed the course.

NEW LAWS FOR SECURITY OF PAYMENT

After substantial consultation undertaken by the Department of Housing and Public works in in 2016–2017, the Minister for Housing and Public Works and the Minister for Sport, the Honourable Mick de Brenni MP, will introduce the Building Industry Fairness (Security of Payment) Bill 2017 in Parliament in early 2017–2018.

There will be provisions in the bill to reduce costs and increase the effectiveness of adjudication.

The bill will be considered by the parliamentary Public Works and Utilities Committee.


The QBCC offers a free, independent internal review service to reduce the number of administrative reviews made through the Queensland Civil and Administrative Tribunal (QCAT) in accordance with the QBCC Act. Examples of the types of reviewable decisions include:

• to issue or not to issue a direction to rectify and/or complete work

• that rectification/completion work is or is not of a satisfactory standard

• the scope of works for an insurance claim

• to disallow part of an insurance claim or a whole insurance claim

• that a certifier has not engaged in unsatisfactory conduct or professional misconduct

• to suspend or cancel a licence.

During 2016-2017, the QBCC opened 639 internal review cases. 748 internal review cases were closed during the reporting period. The QBCC closed more cases than it opened as a result of processing cases from previous financial years.

As a result of internal reviews completed during 2016-2017:

• 395 (71.3 per cent) original decisions were upheld

• 107 (19.3 per cent) original decisions were overturned

• 52 (9.4 per cent) original decisions were varied.

There were 219 matters that the QBCC was unable to assist with because:

• 50 of those matters were outside jurisdiction, as the applications did not relate to a ‘reviewable decision’ or the applicant had also applied to QCAT for external review

• in relation to 27 original decisions, the applications for review were not accepted as those applications were made more than 28 days after the original decision to which they related and the QBCC decided not to extend the time for the applicant to make the application

• in relation to 39 of the original decisions purportedly under review, the decision had either not yet been made or was withdrawn by the original decision-maker before an internal review decision was made

• applications in relation to 103 decisions were withdrawn.

As at 30 June 2017, 75 cases remained open.

On average, it took 77 days to process an internal review case. The QBCC reviewed decisions within 28 calendar days 25 per cent of the time.

INTERNAL REVIEW


“I have been glad to work

with QBCC to raise female

participation within the construction

industry as well as to ensure

that plumbers continue to get

an improved and specialised

service from their regulator.”

PENNY CORNAH Chair, Service Trades Council

and Executive Director,

Master Plumbers’ Association of Queensland


SERVICE TRADES COUNCILThe Service Trades Council (STC) is an independent statutory authority created to confer on policy development and implementation for the service trades, and to provide advice about the industry to the Minister and the QBCC Commissioner. The STC was established under the Plumbing and Drainage Act 2002 (PDA) and was formally announced on 1 July 2016 by the Minister for Housing and Public Works, and Minister for Sport, the Honourable Mick de Brenni MP. It held its inaugural meeting on 4 August 2016 and is an important part of the QBCC. The STC will strengthen Queensland’s plumbing, drainage, air-conditioning, fire protection and mechanical services industries, including the licensing of tradespeople and investigating complaints, which are under the purview of the QBCC.

PLUMBER AND DRAINER LICENSINGThe QBCC administers Queensland’s licensing system for plumbers and drainers. As of 30 June 2017, there were 16,4821 individuals holding open, provisional or restricted plumber and drainer licences in Queensland. This number includes endorsements. In 2016-2017, the following licensing activities were recorded:

• new licence applications received – 1,162

• new applications processed – 1,162

• restricted licence applications assessed and approved – 85

• licence renewals – 4,442.

PLUMBING COMPLAINTS, INVESTIGATIONS AND DISCIPLINARY ACTIONSAs the State’s plumbing and drainage regulator, the QBCC investigates complaints which relate to licensing and performance of work under the PDA. The QBCC also investigates non-compliance in terms of unlicensed work and advertising by an unlicensed person.

In 2016-2017, the QBCC received 205 new complaints, and closed 116. Disciplinary action included:

• 30 disciplinary orders issued to licensees, amounting to $67,656

• 156 penalty infringement notices, amounting to $179,959

• two reprimands issued to licensees.

The QBCC adopts a two-pronged approach to ensure compliance with applicable laws. We check that licensees perform work in accordance with the law to prevent defective work and unnecessary cost, worry and inconvenience both to themselves and the community, and undertake regular unannounced inspections of building sites across Queensland to eradicate unlicensed work.

SERVICE TRADES

WORKING WITH OTHER REGULATORS

The QBCC announced on 6 July 2016 that together with the Electrical Safety Office (ESO), 35 Brisbane and Sunshine Coast construction sites were audited for

plumbing, drainage and electrical safety. Checks were conducted of 400 licensees, with the QBCC issuing more than $2,300 in fines.

The collaboration is the result of a stronger working relationship between the QBCC and the ESO, to achieve positive impacts on compliance levels

in the construction industry.

1 Number includes plumbers and drainers holding occupational plumbing/drainage licences under the PDA who may also hold plumbing/drainage contractor licences under the QBCC Act.


Compliance activity throughout 2016-2017 included:

• licence checks completed through compliance operations: 553

• on-site licence checks completed through routine compliance activities: 327

• desktop licence checks completed through routine compliance activities: 226.

Plumbing investigators conducted licence checks at both commercial and domestic construction sites in 2016-2017. Plumbing investigators visited 640 sites, in addition to conducting desktop licence checks.

In 2016-2017, as the QBCC conducted audits on hydrant and sprinkler systems of large-scale commercial buildings, QBCC investigators found suspected cases of unlicensed plumbing, drainage or fire protection work and are making further enquiries.

Proactive compliance activities are also an opportunity for on-site licensees of all trades to learn more about the stringent licensing requirements of plumbing, drainage and fire protection work. Plumbing and drainage work in Queensland, including fire protection work, must be carried out by a licensed person.

NOTIFIABLE WORKS – FORM 4 The QBCC seeks to ensure high standards are maintained in plumbing and drainage work. For some types of work, QBCC-licensed plumbers must lodge details about the work through a Form 4 – Notifiable Work to the QBCC. The QBCC regularly conducts compliance checks on notifiable works and the accompanying paperwork.

In 2016-2017, the QBCC’s audit program focussed on the hot water industry, as Form 4s must be lodged for all installations and replacements of hot water heaters in existing buildings. Licensees who have been found to have poor compliance with the notifiable work laws are also subject to audits.

Notifiable work compliance activity during 2016-2017 included:

• 555 audits conducted

• 75,368 Form 4s lodged.

POOL SAFETY Swimming pool barriers that comply with the pool safety standard help prevent the incidences of drowning of children under five. All pools associated with residential uses such as houses, townhouses, unit complexes, hotels, motels, backpacker accommodation and caravan and mobile home parks must be registered and have a barrier compliant with the pool safety standard. Sale or lease of a property also triggers a requirement for a pool safety certificate, issued by a licensed pool safety inspector (PSI).

The QBCC maintains a register of regulated pools and pool safety inspectors. As at 30 June 2017 there were 364,496 pools on the pool register, an increase of three per cent from the previous year.

The QBCC also investigates complaints and takes disciplinary actions against PSIs, approves continuing professional development (CDP) activities and allocates CDP points for PSIs.

As at 30 June 2017 there were 697 PSIs licensed by the QBCC.

In 2016-2017, 53 complaints were received regarding the conduct of PSIs and in the same period 81

complaints were finalised. In 28 instances it was found that there were no grounds for disciplinary action. For those cases where grounds were established, the following disciplinary actions were taken during 2016-2017:

• 50 monetary penalties

• three reprimands

• two issued with demerit points (in addition to monetary penalties).

Eight PSIs sought review of the disciplinary action decision by the QBCC’s Internal Review Unit.

POOL OWNER COMPLIANCE AND ENFORCEMENTThe QBCC monitors and enforces the requirement for pool owners to obtain certificates and refers unsafe pools to local governments, who are required to inspect and may take enforcement action.

As at 30 June 2017, 35,490 pool safety certificates were issued in the reporting period which included 28,954 for non-shared pools and 6,536 for shared pools. The QBCC referred 456 cases to different local governments in 2016-2017.

IMMERSION INCIDENT REPORTINGThe QBCC received reports periodically of immersion incidents involving young children during the reporting period. The data in these reports can be used for assessing the efficacy of the pool safety laws. These reports are provided by Queensland Health, following notification by health professionals, including the Queensland Ambulance Service. Immersion incident reports are also provided to the relevant local government, which is required to inspect the site of the immersion. If the local government inspection raises any concern about the pool fence at the site of the immersion, the local government generally refers that to the QBCC for action, and the QBCC will follow up with the relevant PSI. In 2016-2017, the QBCC received 89 reports of immersion incidents.

POOL SAFETY INSPECTOR LICENCES 2016-2017

New licences issued

128

Licences renewed

569

Total licensees as at 30 June 2017

697

TABLE 22


In 2016-2017, the QBCC continued engaging in education and awareness activities. These included:

• launching the STC’s newsletter, ‘Pipeline’, which provides the service trades industry an update on what is happening in the industry and what the STC is working on

• activities at the Master Plumbers’ Association of Queensland (MPAQ) PIPE events across the State

• other industry engagements and presentations coordinated by the MPAQ

• supporting the Housing Industry Association’s events

• supporting Queensland Master Builders Association’s roadshows

• providing education services to TAFEs and TAFE SkillsTech

• holding discussions with plumbers and gas-fitters on licensing requirements

• presentations to major contractors at the Service Trades Queensland colleges across the State

• working with various regional councils and other agencies on the establishment of the STC

• presentations to members of the National Fire Industry Association

• discussions with the Electrical Safety Office on how to better protect the community

• discussions with the Gold Coast 2018 Commonwealth Games Corporation to ensure contractors working on facilities are appropriately licensed

• educational blog posts on the QBCC website including reminders about renovating prefabricated pools, and waterproofing requirements for doorways to decks and balconies

• hosting the biannual Plumbing Inspectors seminars

• working with the Legionella Management Advisory Group to establish and provide information to industry

• distributing information on changes to legislation around cardiopulmonary resuscitation (CPR) Pool Safety signage and smoke alarms, through social media posts and emails

• supporting the Department of Housing and Public Works’ Building Plan Roadshow

• delivering continuing professional development presentations to PSIs across the State in July, November and December 2016

• providing awareness and assistance as a result of Cyclone Debbie through the Building and Tradie Assistance Register (6 – 12 April 2017)

» 796 tradies registered

» 448 building certifiers registered

• providing information on reforms related to the Queensland Home Warranty Scheme.

EDUCATION AND ENGAGEMENT

EDUCATING AND ENGAGING THE COMMUNITY

To increase our focus on educating and engaging our customers and the community, the QBCC launched its Education and Engagement team in April 2017. In June 2017,

the QBCC embarked on its inaugural Tradie Tour covering 10 locations across Queensland. Tradie Tours are talks focussing on providing technical information to tradespeople and contractors. The inaugural tour focussed on waterproofing

and tiling. More talks will be organised and held in the future.

our services...three business days. this section details the qbcc’s performance for 2016-2017 in...

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