Ministerial Construction Council

Ministerial Construction Council—19 March 2024, Brisbane

The Queensland Ministerial Construction Council (the Council) met in Brisbane on Tuesday 19 March 2024, ahead of the forthcoming Building Ministers’ Meeting to establish a Queensland position in relation to key matters.

The Minister acknowledged the valuable contribution the Council has made in the past and looks forward to continuing to work in collaboration with industry groups to deliver on Queensland Government commitments, particularly Homes for Queenslanders.

Housing Workforce

The Honourable Lance McCallum MP, Minister for Employment and Small Business and Minister for Training and Skills Development provided the Council with information on a whole of government approach to build a strong and diverse workforce to meet housing needs for Queensland.

Building Ministers’ Meeting

The Council reconfirmed that Queensland recommends to the national Building Ministers’ Meeting:

• There are benefits in a nationally consistent Security of Payment approach and that Queensland has formally indicated its recommendation to the National Building Ministers’ Meeting (BMM) to adopt a national approach.
• The building industry understands the importance and challenges of ensuring sustainable building that supports net zero. This would be enabled by:
  1. Strong partnerships and collaboration between governments, industry and unions
  2. National consistency in measurement, definition, assessment and compliance of lower carbon building materials
  3. Multiple pathways for new and existing stock to achieve goals - including regulatory and non-regulatory (such as design, innovation, education and incentives)
  4. Education across industry is important and demonstration projects can show the way.
• The administrative arrangements between the Commonwealth, States and Territories that establish the Australian Building Codes Board, be considered to ensure they, and the Board are responsive to the current and future national challenges and able to support industry through change.
• Consideration of the regulatory framework and other pathways to ensure they are an enabler of innovation and productivity and to the timeframes of future updates to allow this to occur.

MCC Subcommittees

The Council noted updates from subcommittees on various work streams including:

• Roofing and Stormwater
• Licensing of Boilermakers
• Queensland Home Warranty Scheme Review

The Committee also noted the update regarding the reports of previous subcommittees for Fairness in Contracting and Project Leadership and Governance, as well as an update about the work of Trust Account Framework Implementation Steering Committee.

The Minister thanked members for their attendance and ongoing commitment to the MCC and its subcommittees.

Ministerial Construction Council—17 October 2023, Brisbane

The Queensland Ministerial Construction Council (The Council) met in Brisbane ahead of the forthcoming Building Ministers Meeting to establish a Queensland position in relation to key matters.

Security of Payment

Since 2018, Queensland trust accounts have protected payments under more than 1200 building projects to the value of almost $20 billion, strengthening payment protections for tradespeople and subcontractors.

The Implementation Steering Committee has overseen progress in relation to software updates. Council noted the Government's consideration of options to support alignment of framework rules with updates to software by simplifying and clarifying the legislative requirements for trust record-keeping, and improving education and communication strategies.

The Council noted the benefits from a nationally consistent Security of Payment approach and that Queensland has formally indicated its recommendation to the National Building Ministers’ Meeting (BMM) to adopt a national approach.

Further, the Council noted that the Commonwealth Government is leading examination of the potential for a nationally consistent approach to security of payment.

Net Zero

The Council noted the outcomes of the Industry Dialogue meeting hosted by the BMM on Friday 6 October 2023, where national industry heads, Australian Building and Construction Board members and Building Ministers gathered to discuss a collaborative approach to tackling shared issues.

The Industry Dialogue identified sector wide Net Zero commitment, and discussed how the form and timing of the next iteration of the National Construction Code (NCC) was an important factor to ensure it could be achieved, in addition to supporting additional housing supply.

The Council agreed that Queensland recommends to the Building Ministers’ Meeting to be held on Friday 20 October 2023:

• The building industry understands the importance and challenges of ensuring sustainable building that supports net zero. This would be enabled by:
  1. Strong partnerships and collaboration between governments and industry
  2. National consistency in measurement, definition, assessment and compliance of lower carbon building materials
  3. Multiple pathways for new and existing stock to achieve goals - including regulatory and non-regulatory (such as design, innovation, education and incentives)
  4. Education across industry is important and demonstration projects can show the way.

• The administrative arrangements between the Commonwealth, States and Territories that establish the Australian Building Codes Board, be overhauled to ensure they, and the Board are reformed and responsive to the national challenges of the Net Zero transition and able to support industry through change.
• Consideration of the regulatory framework and other pathways to ensure they are an enabler of innovation and productivity and to the timeframes of future updates to allow this to occur.
• Consideration of making tools such as building-related Australian Standards freely available to building practitioners.

MCC Sub-Committees

The Council noted updates from industry subcommittees on various work streams including:

• Roofing and Stormwater
• Boilermakers
• Project Leadership and Governance
• Queensland Home Warranty Scheme Review
• Fairness in Contracting.

The Minister thanked members for their attendance and ongoing commitment to the MCC and its subcommittees.

Ministerial Construction Council—7 June 2023, Brisbane

The Ministerial Construction Council (MCC) met today for the second time this year to discuss critical matters relating to the building and construction industry.

Security of Payment

Attendees at the event, held in Brisbane, were updated on the remaining phases of Queensland’s nation-leading security of payment reforms, to further strengthen payment protections for trades people and ensure they are paid on time, every time.

Queensland’s trust account framework has been progressively introduced to the building and construction industry since 2018 and protects both progress payments and cash retention amounts.

The Council was updated on the engagement of software providers, the simplification of legislation, and how industry leaders can broaden knowledge and education within the fields of building and construction.

They also examined the approach of the Queensland Building Ministers’ Meeting paper, in advocating for national consistency relating to security of payment for trades people.

The Commissioner of the Queensland Building and Construction Commission, Anissa Levy, provided a briefing on the regulator’s current approach in supporting industry to transition to the framework, as well as discussing the work being done by the regulator in relation to recent insolvencies.

Building Ministers’ Meeting

The Council was also given an opportunity to contribute to matters which may be relevant to the upcoming Building Ministers’ Meeting, to be held in Sydney on Friday.

The Council asked the Minister to advocate for free Standards for practitioners at the upcoming Building Ministers’ Meeting.

National Construction Code matters

Members raised interest around the work of the Australian Building Codes Board, particularly in relation to the implementation of the National Construction Code (NCC) 2022, and the timing of the next iteration of the NCC and expressed a view to consider future regulatory relief on the NCC 2025 timeframe.

The MCC was briefed on the results of consultation on the promised sensible exemptions and transitional arrangements to the NCC provisions commencing on 1 October 2023, to provide homeowners with accessible homes.

The Council was briefed on the specific and timebound transitional arrangements developed by government in consultation with industry to support industry’s adoption of liveable housing.

Council noted that the Energy Efficiency measures would be adopted on 1 October 2023.

Members noted the continued engagement between the Department of Energy and Public Works and stakeholders. This will now provide certainty and clarity to industry about the NCC’s adoption relating to Queensland-specific transitional arrangements and exemptions for accessible housing, noting that Queensland would proceed in full with the energy efficiency measures.

MCC Sub-Committees

The Council received an update about the important work of its active subcommittees, including the Queensland Home Warranty Scheme Review; Fairness in Contracting; Project Leadership and Governance; and Fire Protection Regulatory Framework, and endorsed the terms of reference of the two newly commissioned MCC subcommittees - Licensing of Boilermakers, and Roofing and Stormwater.

The Minister thanked members for their attendance and ongoing commitment to the MCC and its subcommittees.

Ministerial Construction Council—28 February 2023, Brisbane

On 28 February 2023, the Minister convened the first meeting of the Ministerial Construction Council (the Council) for the year to discuss a range of issues relating to Queensland’s $50 billion building and construction industry.

The Council acknowledged the contribution Mr Bruce Medek, formerly Chair of the Board of Architects of Queensland, made to the building industry in Queensland and offers its condolences to Mr Medek’s family, friends and colleagues on his passing.

The Minister updated the Council on the industry’s forward outlook for 2023 and 2024, including around the ongoing strength of the forward investment outlook.

Members noted that the Queensland Government remains committed to implementing the trust account framework and promoting security of payment in the construction industry. This commitment continues to include a steady pace of reform for a safer, fairer and more sustainable industry, which seeks to be responsive to emerging issues and industry needs. This has included a strong focus on improving the financial underpinnings of the sector, consumer protection through the excluded persons regime as well as improving payment protections.

Members provided feedback on options to support industry’s take-up of the trust account framework and the next phases of reform. Members also noted the significant amount of subcontractor money being protected as a result of the government’s Security of Payment reforms.

The Council discussed the implementation of the national reforms within the National Construction Code 2022 and the work that continues to occur in providing additional guidance material. The Minister heard members’ feedback regarding the Modern Homes Standards reforms which will provide more accessible, comfortable homes, and will use this advice to formulate strategies for the continued implementation of these important reforms. Members noted the Department of Energy and Public Works is preparing advice on transitional arrangements for the adoption of the Modern Homes standards in Queensland. Members also made arrangements to facilitate a discussion around fire safety with respect to EV charging and building fire protection systems.

Finally, members were asked to review the reports of the Queensland Home Warranty Scheme, fairness in contracting and project leadership and governance sub-committees prior to presenting to government for consideration and that work is also progressing on the need for a licensing framework for the work of boilermakers. Members were also asked to note the establishment of a working group to progress the recommendations of the MCC Fire Protection Regulatory Framework Subcommittee and a subcommittee for a licensing framework for roofing and stormwater.

The Minister thanked members for their ongoing commitment to the MCC and its subcommittees.

Ministerial Construction Council—24 August 2022, Brisbane

On 24 August 2022, the Minister convened a face-to-face meeting of the Ministerial Construction Council (the Council) to discuss a range of issues relating to Queensland’s $47 billion building and construction industry.

The Council welcomed new MCC member, incoming Chair of the Board of Architects of Queensland, Jennifer McVeigh and thanked outgoing member and former Chair of that Board, Bruce Medek for his efforts.

The Minister provided the Council with an update on the independent Developer Review Panel, noting that the Panel’s discussion paper will soon be released for public consultation and encouraging members to use the various feedback channels.

Members were also provided with an update on the government’s response to the QBCC Governance Review Report 2022, noting that an Implementation Committee, chaired by the Director-General, Department of Energy and Public Works, is making encouraging progress on delivering the 90-day action plan.

The Council discussed the Building Ministers’ Meeting on 26 August 2022, the first under the new Australian Government, and were provided with a briefing on matters to be discussed, including delivering genuinely Modern Homes – homes that are lower emissions and more accessible. The Modern Homes agenda supports achievement of the nation’s emissions reductions targets and enable Australians to live safely in their homes for longer and in circumstances where they may have a disability.

Together the changes in NCC 2022 will improve occupant health and amenity, resilience to extreme weather and blackouts, and provide significant savings to new households. Members noted the Queensland Government would seek to ensure a reasonable timeframe for the industry to do the necessary redesign work and adjust construction practices for the Modern Homes provisions.

Members noted awareness of these changes remains low and agreed to work together on an education campaign delivering consistent communication and advice. Members also sought a reasonable transition period for the Modern Homes provisions, which account for current industry conditions and other changes that are occurring to the NCC.

The Council was further informed that Building Ministers would discuss market capacity in the building construction and maintenance sector, with members providing their feedback to the Minister on industry conditions in Queensland.

Members noted the issues around market capacity. The members noted the importance of a multi-faceted response, covering manufacturing capacity, supply chains and workforce and also recommended that Queensland express support for an evaluation of the pandemic response as it relates to the building construction sector.

The Council endorsed the final report of the Fire Protection Regulatory Framework subcommittee and thanked the Chair and subcommittee members for delivering a report that sets a solid roadmap for future action.  Developed through collaborative work by subcommittee members informed by their association networks and subject matter experts, these changes recommend improved compliance with fire safety defect rectification in Queensland in the future.

Finally, members noted progress on the activities of other active MCC subcommittees including the review of the Queensland Home Warranty Scheme, Fairness in Contracting, and Project Leadership and Governance, all of which are expected to provide reports to the Council before the end of 2022.

The Minister thanked members for their ongoing commitment to the MCC and its subcommittees.

Ministerial Construction Council—7 March 2022, Brisbane

On 7 March 2022, the Minister for Energy and Public Works convened the first meeting of the Ministerial Construction Council (Council) for the year. Several key reform proposals were discussed in the context of the impact of COVID-19 pandemic, the post-COVID-19 recovery and the recent severe weather event and flooding in South East Queensland. The scale of this severe weather event is significant and government and industry is working together to support Queenslanders.

The Minister updated the Council on the industry’s forward outlook for 2022 and noted that the Queensland Government remains committed to supporting industry in rising to evolving challenges and opportunities. This commitment continues to include a steady pace of reform for a safer, fairer and more sustainable industry, which seeks to be responsive to emerging issues and industry needs.

In a key example, members were briefed on a recent ‘health check’ of industry readiness to implement the Queensland Government’s Trust Account Framework, which quarantines and safeguards subcontractor payments until they fall due. The health check was conducted to gauge industry readiness for the roll out of project trust account requirements to the private sector, which commenced on 1 January 2022. It found that industry was broadly ready for the changes, as they initially apply to only the largest projects. The Minister also sought the council’s feedback on the ongoing readiness of smaller contractors in meeting their obligations to ensure successful implementation of the framework in light of the outcomes of the health check, the impacts of COVID-19, current market capacity and effects of the recent natural disaster.

Further, an update was provided on progress against the Queensland Building Plan Update 2021, in collaboration with the council’s subcommittees. Members noted the work undertaken to progress several reviews, including the Queensland Home Warranty Scheme, the role of developers in the Queensland construction industry and the governance arrangements of the Queensland Building and Construction Commission. The council was briefed on the further ways in which members could assist in delivering the reform program and agreed to action these, as necessary.

Finally, in relation to national reform, the council noted the status of work on the energy efficiency and accessible housing provisions of the National Construction Code 2022 (NCC).

This includes work by Queensland towards lower energy emissions buildings. Building on work from 2021, members considered a draft Terms of Reference for a Sustainable Resilient Buildings Working Group of the council to help drive improvements in this area.

Similarly, council members noted the progress in developing relevant exemptions to proposed accessible housing requirements of the NCC, including how these apply to the iconic ‘Queenslander’ design. Members were also requested to provide feedback on appropriate transition timeframes for the new requirements, noting a similar request is being made of accessibility stakeholders.

Ministerial Construction Council—18 November 2021, Brisbane

On 18 November 2021, the Minister convened a meeting of the Ministerial Construction Council (the Council) to discuss a range of issues relating to Queensland’s $47 billion building and construction industry.

The Council was informed that the Queensland Building Plan 2017 has been updated to accommodate current circumstances and include several new reforms to benefit Queenslanders. The Queensland Building Plan Update 2021 remains focussed on creating a safer, fairer and more sustainable building and construction industry with key initiatives including:

• the establishment of an independent panel to review the role of developers in the building and construction industry
• the development of reform options to strengthen the Queensland Home Warranty Insurance Scheme
• an independent review of the Queensland Building and Construction Commission’s (QBCC) governance framework.

The Minister also advised that following advice that there was a need for greater clarity around the timeframes provided in directions to rectify issued by the QBCC, the government made a regulation amendment to formalise QBCC’s usual practice of providing 35 days to complete the work. While the QBCC temporarily suspended the issuing of directions on 3 November 2021, most of its business-as-usual activities continued and from 10 November 2021, directions can once again be issued. Legislative changes have also been considered as a matter of priority to ensure previous directions issued by QBCC are not open to challenge. These changes ensure that nobody’s rights are prejudiced.

The Council was also informed that Queensland would take a paper to the next Building Ministers’ Meeting focusing on the potential to extend opportunities for Distributed Energy Resources, such as electric vehicle charging capability, beyond the proposed provisions presented in the recent Public Comment Draft of the National Construction Code 2022 (NCC 2022). The Council noted its interest in this work, particularly within the context of the changes proposed for NCC 2022.

The Chair of the Safer Buildings Taskforce provided the Council with an update on the outcomes from a compliance audit on combustible cladding. The Council was advised that the Taskforce will undertake consultation with key industry stakeholders to develop recommendations for government consideration to eradicate flammable cladding from the State.

Finally, members were provided with an update on the activities of several MCC subcommittees.

Ministerial Construction Council—3 November 2021, Brisbane

On 3 November 2021, the Minister convened a meeting of the Ministerial Construction Council (Council) by teleconference to discuss matters relating to Queensland’s $47 billion building and construction industry.

Council members discussed the importance of the Queensland Building Construction Commission’s (QBCC) function of ensuring high standards within the industry, particularly when it comes to defective building work.

To ensure strong protections for consumers and to maintain building standards, the QBCC has the power to direct a person to rectify defective or incomplete building work or remedy consequential damage within a prescribed period.

To date, the regulator has provided 35 days for rectification work, to allow 28 days for the work to be completed and a reasonable time for postage and receipt of directions.

The Council agreed that there is a need to ensure greater clarity around this process.

Members noted that as a priority, the Government is considering the appropriate legislative and regulatory changes to confirm the timeframes stated in directions to rectify issued by the QBCC.

Members also noted the intention of the Government to quickly resolve the matter.

Members further noted that QBCC business as usual activities will largely continue.

The Minister thanked all members for their ongoing commitment to the Council and their contribution to delivering a safer, fairer and more sustainable building and construction industry in Queensland.

Ministerial Construction Council—27 July 2021, Brisbane

On 27 July 2021, Minister Mick de Brenni convened the second meeting of the Ministerial Construction Council (Council) for 2021 to discuss a range of issues relating to Queensland’s building and construction industry.

Council members were thanked for their contributions in shaping the Terms of Reference for the review of the role of developers. The Terms of Reference empower the review panel to further advance the Queensland Government’s security of payment record and expand on the work of the Building Confidence Report to promote building quality and safety. The Council noted the composition of the review panel, as well as its industry reference group, would be announced shortly and appointed for a period of up to 12 months. Once appointed, the panel will facilitate state-wide public consultation and provide a report to government.

The Council was also invited to provide feedback on the operation of the head contractor licensing exemption in the Queensland Building and Construction Commission Act 1991. The consultation will consider a broad range of issues to ensure an appropriate balance between protecting health and safety through Queensland’s licensing system and minimising unnecessary red tape.

Building on the forward work-plan approved at the last meeting of the Council, the Council endorsed Terms of Reference and considered the membership of a number of subcommittees to address key industry issues. Endorsement was given regarding the Queensland Home Warranty Scheme, the fire protection regulatory framework, project leadership and governance, and fairness in contracting.

Finally, the Council considered the proposed approach for retention trust training to promote the smooth implementation of project trust accounts. The Council noted the training will be provided by the Queensland Building and Construction Commission and that the Department of Energy and Public Works would undertake an evaluation of the training approach following full implementation of the trust account framework in 2023.

The Minister thanked all members for their ongoing commitment to the Council and their contribution to delivering a safer, fairer and more sustainable building and construction industry in Queensland.

Ministerial Construction Council—3 March 2021, Brisbane

On 3 March 2021, the Ministerial Construction Council (Council) held its first meeting of the year.

The Council noted that Building Ministers have committed to settling a position on including minimum accessibility standards for residential dwellings in the National Construction Code in early 2021. The Council heard from community, disability and human rights stakeholders who outlined the benefits to individuals, the community and the building industry that mandating an access standard could have. Stakeholders also highlighted Australia’s international obligations and noted the failure of voluntary initiatives to increase consistent uptake of accessibility features, some of which are now common design choices. The Council agreed to provide feedback to guide Queensland’s position.

The Council noted the government’s significant progress against its reform agenda, with all key priorities for phases 1 to 3 of the Queensland Building Plan having been delivered and significant progress made on some phase 4 and 5 activities.

The Council was also invited to provide input on a proposed work plan to December 2022. The work plan covers several key priorities, including a number of election commitments aimed at promoting fairness, safety and sustainability in Queensland’s building and construction industry. Members were assured that a proposed phased approach to this work ensures that industry can fully participate in the reform process, have time to prepare for any changes and plan for the future.

Council members noted the statutory requirement to conduct a review of the role of developers in the building and construction industry, as outlined in section 115D of the Queensland Building and Construction Commission Act 1991. Council input was sought on a draft Terms of Reference for an independent panel that will be stood up to review the role of developers in the building and construction industry. Consisting of independent experts, the Panel will consider the impact that developers have on security of payment, consumer rights and the quality and safety of building practices in Queensland. Members were invited to provide feedback on the draft Terms of Reference and nominate potential appointees to both the panel and its associated Industry Reference Group by 19 March 2021.

The Commissioner of the Queensland Building and Construction Commission (QBCC) outlined its proposed regulatory approach in relation to Minimum Financial Requirements for licensing in 2021, including its proposed focus on education and guidance material. Members noted that, with the commencement of the QBCC’s Tradie Tour, individual assistance is available to licensees, to assist them in meeting their obligations. Council members noted the regulatory approach agreed by MCC on 7 July 2020. Given some instances of failure to report, council members agreed to assist with advising their members of their obligations and the support available.

The Minister thanked all members for their ongoing commitment to the Council and their contribution to delivering a safer, fairer and more sustainable building and construction industry in Queensland.

COVID-19 Industry Teleconference Outcomes – 7 July 2020

On 7 July 2020, Minister de Brenni convened a teleconference of the Ministerial Construction Council, Building Recovery Group and other key industry representatives (the group) to consider a range of matters relevant to the building and construction industry.

The group noted that, due to other priorities related to the COVID-19 response, the temporary measures that allow building certifiers to hold a licence, even if they hold Professional Indemnity Insurance with certain cladding exclusions, would be extended. The group was comfortable with extending the relevant exemption period from 30 June 2021 to 30 June 2022, noting that the Queensland Building and Construction Commission (QBCC) would consider this proposed extension when accepting applications from licensees.

Members were briefed on work under the Queensland Government’s Economic Recovery Strategy – Unite and Recover for Queensland Jobs, noting that, as a result of industry consultation, a range of economic recovery measures were being developed, in addition to the measures already announced. Members noted that industry recovery blueprints were being prepared and would continue to be refined.

An update was provided on the Building Industry Fairness (Security of Payment) and Other Legislation Amendment Bill 2020 (the Bill), including the 12 recommendations of the Transport and Public Works Committee (the Committee). Minister de Brenni noted the group would be provided with early advice about developments in relation to the Bill and there was broad discussion about the Committee’s recommendations, including the recommendation relating to the role of developers in the building industry.

The QBCC sought endorsement of its proposed regulatory approach during COVID-19, including its proposed response to licensees who report hardship as a result of the pandemic. The group endorsed the proposed approach, noting that the Queensland Building and Construction (QBC) Board would provide further advice to the Minister about the application of the framework.

The Compulsory Continuing Professional Development (CCPD) Subcommittee presented its Final Report for consideration and endorsement. The group endorsed the report and noted that the Department of Housing and Public Works would now consider the report and provide advice to the Minister.

Finally, the Minister provided members with an update on the government’s election commitment to consider an entry-level form of registration for recently graduated engineers in Queensland. Members were informed that consultation revealed that there were differing views about the value of such a registration and that that the Governments focus of would remain on reforms to mitigate the impacts of COVID-19.

Group members are invited to provide further input through the secretariat: OADG.BLP@hpw.qld.gov.au.

COVID-19 Industry Teleconference Outcomes – 26 May 2020

On 26 May 2020, members of the Ministerial Construction Council, Building Recovery Group and other key industry representatives met by teleconference to consider matters of importance to the building and construction industry.

Minister de Brenni gave an update on the Queensland Government response to the COVID-19 pandemic and noted that all year levels were back at school with a very high level of attendance. The Minister also welcomed the Local Government Association of Queensland, Property Council of Australia, Royal Institution of Chartered Surveyors and Strata Community Association Queensland as new members of the Ministerial Construction Council.

Members of the group were then briefed on the implementation of the new licensing requirements for mechanical services, which commenced on 1 January 2020. He advised members that, due to COVID-19, businesses that were struggling to meet the timeframe to become licensed would be supported with transitional arrangements allowing the QBCC to issue conditional licenses for a limited time.

As the State’s largest employer, the recovery of the building and construction industry is a key priority for government. The Minister referred to the recent launch of Queensland’s Economic Recovery Strategy, which outlines guiding principles for the state’s path out of the pandemic. Members were given an opportunity to comment on the development of a building and construction industry recovery blueprint and were invited to provide further feedback following the teleconference.

The Minister also provided an overview of the implementation timeframes for the reforms in the Building Industry Fairness (Security of Payment) and Other Legislation Amendment Bill 2020 which remains a key priority for government. It was agreed that, in light of the pandemic, flexibility will be needed around the timing of certain aspects of the Bill, including the trust account framework, as businesses deal with other priorities.

The group noted an agenda paper on the COVID-19 Emergency Response Act 2020 and were invited to be involved in the development of an extraordinary regulation designed to support industry and regulators manage the impacts of the COVID-19 restrictions.

Finally, group members considered Terms of Reference for a forum to assist the QBCC in developing its regulatory approach to the COVID-19 pandemic. The forum will provide input to the design of a framework, including a regulatory guide, that will articulate the regulator’s approach to licensees that have been genuinely impacted by COVID-19.

Members are invited to provide further input through the secretariat: OADG.BLP@hpw.qld.gov.au

COVID-19 Industry Teleconference Outcomes – 23 April 2020

On 23 April 2020, members of the Ministerial Construction Council, Building Recovery Group and other key industry representatives met by teleconference to consider matters of importance to the building and construction industry.

Minister de Brenni gave an update about the Queensland Government response to the COVID-19 pandemic and reconfirmed the Government’s commitment to keep the building and construction sector operating effectively during what is a difficult time for everyone.

Members were provided with a summary of matters to be considered at the Building Ministers’ Forum on 23 April 2020 including the impact of COVID-19 on the building industry, a definition of complex buildings, and public reporting of Building Confidence Report progress. Members considered that the proposed definition of complex buildings would benefit from further work prior to being included in the National Construction Code. With the agreement of members, the Minister committed to write to the Chair of the Building Ministers’ Forum outlining the views of the building and construction industry in Queensland.

Members were also briefed on the content of the COVID-19 Emergency Response Bill 2020 as it relates to the building industry. The bill, considered in the Legislative Assembly at its 22 April 2020 sitting, provides broad powers that allow the Queensland Government to intervene, where needed, to mitigate the spread of COVID-19, manage disruptions, and allow industry and the economy to keep operating in a flexible way.

The department will continue to work with industry to provide support to the sector including any proposed regulatory changes.

An update was also provided on Minimum Financial Requirements annual reporting, noting that over 70% of contractors have lodged their annual reporting. The Queensland Building and Construction Commission (QBCC) is continuing to assist industry with compliance by holding monthly stakeholder meetings to answer questions relating to Minimum Financial Requirements and annual reporting.

Members welcomed advice from the regulator that work is underway on a COVID-19 Regulatory Approach in consultation with industry to outline how the QBCC will respond to the impacts of COVID-19. Members were thanked for the valuable contributions they made to the QBCC’s understanding of the impact that COVID-19 is having on the building and construction industry and where particular challenges may be faced over the coming weeks and months. Members agreed it is important for the QBCC to maintain a regulatory presence, particularly in relation to building and product safety, unlicensed building work and security of payment.

The Minister thanked members for their continuing commitment to the expanded Council and for their contributions to the COVID-19 response to ensure the safety and viability of the building and construction industry in Queensland.

Members are invited to provide further input through the secretariat: OADG.BLP@hpw.qld.gov.au

QBCC regulatory approach during impacts of COVID-19: industry stakeholder engagement meeting minutes

Meeting Date: Tuesday 7 April 2020, 10:00am – 11:06am

Venue: Teleconference

Acknowledgement of Country

Mr Brett Bassett, Commissioner of the QBCC acknowledged the traditional owners of the land, and paid respect to Elders past, present and emerging.

Welcome

Mr Brett Bassett welcomed attendees to the call, thanking them for their time and noting that the QBCC greatly values the input of the sector regarding how the QBCC will regulate during the COVID-19 pandemic. Mr Bassett stated that the QBCC must ensure that the regulatory approach during this time considers the current environment in which we are all operating, and will focus on the greatest risks.

Purpose of meeting

Ms Kate Raymond reiterated the purpose of the meeting, noting that some temporary changes may be appropriate to the regulatory approach, in light of the COVID-19 pandemic.

The QBCC is looking to publish an additional regulatory guide which will set out the approach to regulating the industry through the impacts of COVID-19.

Ms Raymond noted that the QBCC, together with Government, acknowledges the financial hardship licensees may be experiencing, along with difficulties due to government directives, such as social distancing.

It was noted that any changes adopted, would concern regulatory actions such as penalties or licence suspensions. The QBCC is not looking to relax requirements to pay subcontractors or carry out work safely. The QBCC must however balance the interest of licensees and home owners in proposing the amended regulatory approach during the impacts of COVID-19.

Feedback from industry

Mr Bassett called upon individual entities to provide their feedback and input on the QBCC Regulatory approach during impacts of COVID-19.

The key issues raised by industry stakeholders were:

Relaxation of licensing fees and whether this was a possibility during this time.

Liquidated damages clauses due to implied contract terms for any stopped work due to COVID-19 and the need for a provision for suspensions without penalty due to COVID-19.

ACTION: Ms Suzanne Rainbow to send email with concerns to Mr Richard Cassidy for inclusion in discussions with Premier and Cabinet.

Supply Chain issues including supply timeframes not meeting builder timeframes and the rising cost of product, after receiving correspondence from a main wholesaler, indicating a 10% or more price increase as of 1 May 2020

Cancellation of projects across the state.

ACTION: Ms Alice-Ann McRobbie to send statistics on cancellation of projects to Mr Brett Bassett and Mr Richard Cassidy. Any other entity requiring this information to contact Jodie Siebert, Senior Executive Coordinator, Office of the Commissioner.

Inspections unable to take place due to government directives. Some owners have refused entry to building certifiers on commercial projects. The biggest concern for the NFIA is that building managers and body corporates are attempting to halt testing, repairs and maintenance in buildings, which poses and significant fire risk.

ACTION: Mr Richard Cassidy to circulate endorsed answers from Queensland Health regarding issues arising from last week’s MCC meeting, as well as meeting notes to attendees on 7 April 2020.

Trade Credit reduction due to the QBE reduction of trade credit insurance to 50% of the original insurance, which will have a significant impact on the ability of the supply chain to obtain products and expose suppliers to potential bad debt.

Potential shut down of the industry which may result in the inability to obtain payment for work undertaken. These circumstances may require flexibility from the QBCC during MFR auditing.

Public Health and Safety concern regarding home owner DIY plumbing including installing bidets and hoses to toilets.

Payments from homeowners who may have lost their job to COVID-19 and then are unable to pay builders. This also impacts the builder’s ability to pay sub-contractors, which in turn, is a breach of the Minimum Financial Requirements.

Mental health and wellbeing of licence holders during this time.

Ms Kate Raymond then spoke to matters that could be considered by the QBCC in response to concerns. One option is for the QBCC to consider non-financial penalties where possible for offences. This would not apply to serious breaches, multiple offences and recidivous behaviour.

Mr Paul Bidwell requested further information on what the QBCC will be pursuing during this time.

Ms Raymond requested any feedback regarding this consideration to be sent via email.

It was noted that in regards to inspections, the QBCC could look at whether some matters could be put on hold during this time. This would not include matters where the complaint concerns the structural integrity of the building or could impact health or safety.

Ms Raymond advised that a different approach to debts is also an option. For example, if genuine attempts can be identified that the builder has commenced paying the debt, the regulatory action may be placed in abeyance in those instances. It was noted that the regulatory action does not alter the existence of the debt.

In regards to MFR, Ms Raymond asked whether there was any feedback on the idea of splitting up the licencing categories into three groups (currently in two groups for the regulatory approach), namely SC1 and SC2; categories 1-3; and categories 4-7. Mr Paul Bidwell noted concerns surrounding the doubt surrounding certain categories would comply at all due to impacts of COVID-19.

It was noted that SC1 – category 3 licensees already have until 31 December 2020 to meet the MFR under the current regulatory approach unless there is another risk factor or regulatory action for the licensee e.g. monies owned complaint. In light of COVID-19 issues, other options could be considered, depending on the risk.

Ms Raymond discussed the ability to continue to conduct inspections to certify, noting that where a licensee is unable to perform an obligation due to COVID, the QBCC would not look to impose a penalty. Ms Yvonne Pengilly noted that the QBCC will be looking at desktop audits and there will be consideration regarding timing. Mr Bidwell suggested that certifiers need to issue an interim certificate of classification. Mr Bassett requested an example of a certifier not being able to gain access to a specific site.

ACTION: Mr Bidwell to provide Mr Bassett with example instances where a certifier has been unable to attend a site.

M Raymond noted that the QBCC are currently working on how inspections can be undertaken remotely by obtaining photographic and video evidence from home owners. At this stage, the QBCC are currently still attending physical inspections whilst adhering to social distancing rules.

Mr Michael Roberts requested the statistics of licensee cancellations and the drop in home warranty insurance payments. Mr Bassett advised that this information can be sent through to Mr Roberts.

ACTION: Mr Bassett to send statistics regarding licence cancellations and drop in home warranty insurance payments to Mr Roberts.

Next steps

Mr Brett Bassett advised that any changes to the regulatory approach will have applied flexibility, whilst remaining transparent and supported by law in decisions made.

The QBCC must undergo an internal process before the amended regulatory approach can be finalised. This includes meeting with the Sub-Committee of the QBC Board Regulatory and Resolution Committee where guidance will be sought from members. The QBC Board will also be engaged.

The feedback from this industry group will continue to inform the QBCC approach.

The Department of Housing and Public Works as well as the Minister’s office will also be engaged with as the QBCC progresses these considerations.

Close

The QBCC Commissioner closed the meeting at 11:06am, thanking all attendees for their time and input.

Liza Carroll, Director-General, DHPW asked members to provide further feedback about the key issues of concern to the industry and these were discussed in the meeting.

The Minister thanked members for their contribution and assured members that DHPW will work collaboratively across government and industry to develop a response to each of the issues.

Members are invited to provide further input through the secretariat: OADG.BLP@hpw.qld.gov.au.

• COVID-19 Building and construction industry frequently asked questions (Archived)

COVID-19 Industry Teleconference Outcomes - 11 March 2020

Date and time: Wednesday, 11 March 2020, 12.10 – 12.20pm

Update on COVID-19 situation

• The Minister opened the teleconference and provided an overview of the COVID- 19 virus, noting that the virus can cause illnesses ranging from the common cold through to more severe conditions.
• Members were advised that Queensland is at a different stage of the response compared to other states. It is important that Queenslanders obtain information on the virus directly from the Queensland Health website (www.health.qld.gov.au) for accurate, up to date, advice.
• The Minister assured members that the Queensland Government is well placed to respond to an outbreak and has undertaken simulation scenario testing and whole of government planning. At the time of the teleconference (11 March 2020), there were 20 cases in Queensland. Queensland Health is currently able to track and manage the spread of the virus.

Departmental planning activities

• The Minister advised the Department of Housing and Public Works is making plans for an impact on staff and contractors. Activities to date include:
  • advising staff to consider what they can do personally to manage the spread and impact of the virus and directing them to the Queensland Health website
  • establishing an internal taskforce to coordinate planning and preparation and identify possible impacts
  • prioritising service delivery outcomes to ensure Queenslanders are able to continue to access the support they need
  • reviewing business continuity plans.
• A key focus has been on workforce planning, IT support, accommodation options and supply chain dependencies.
• Staff have been advised that they may access flexible work arrangements or special leave if they are not sick but are required to self-isolate. Sick leave and carers leave may also be accessed in accordance with relevant human resources policies.
• In terms of impacts specifically for MCC members and the broader building and construction industry, the Minister advised that key areas of impact such as supply chain matters are being investigated and there are already indications of supply chain issues. This has been identified in Government projects and through initial conversations with the Building Recovery Group and it is expected to increase.
• The Minister also reinforced that the Department continues to prioritise the proposed Building Industry Fairness and Other Legislation Amendment Bill to implement further security of payment reforms.
• Managing this virus is important in delivering a safe and sustainable building and construction industry for Queensland and members were encouraged to work with their networks to put in place their own preparations for any impacts of COVID-19 on their staff and businesses and to review business continuity plans.

Comments and questions

• Members were invited to provide comment or raise any concerns through the Secretariat: OADG.BLP@hpw.qld.gov.au.
• The Minister thanked everyone for attending and closed the teleconference.

16 October 2019, Brisbane

On 16 October 2019, the Ministerial Construction Council (Council) met at Parliament House in Brisbane during a Sitting of the Queensland Parliament. 

The meeting welcomed as a guest the Chair of the Queensland Building and Construction (QBC) Board, Mr Dick Williams, who has accepted the role of Chair of the newly established Subcommittee on Continuing Professional Development (CPD) in the building and construction industry.

Mr Brett Bassett, Commissioner of the Queensland Building and Construction Commission (QBCC) provided an update to attendees on the Safer Buildings Program which was established by the Government to audit buildings potentially containing flammable cladding and undertake rectification works to protect homeowners and the community. 

Mr Bassett provided an update on Minimum Financial Requirements (MFR) and in particular confirmed for categories SC1, SC2 and categories 1 and 2 licensees that the QBCC would undertake a facilitative regulatory approach for the period 1 January 2020 to 31 December 2020. He confirmed that the QBCC’s regulatory and risk-based approach would be outlined in an MFR regulatory guide which members of the Council will have the opportunity to provide input to and feedback on. He confirmed that the draft regulatory guide and outreach strategy would be ready for consideration by Friday, 15 November 2019. Regular reporting on the outcomes of this approach will be provided to Government.  

A presentation from the Fairness in Contracting Subcommittee outlined a list of unfair contract terms that could be applied to government building and construction projects. The recommendations from the Subcommittee are likely to be considered by the Council later in the year.

Members were updated on the continuing awareness raising activities of the Subcommittee on Increasing Female Participation in the Building and Construction Industry. Council members noted the recent Queensland Government and the National Association of Women in Construction (NAWIC) joint announcement about an exemplar construction project which is targeting to achieve over the 11 per cent goal for women in frontline construction roles.

Members heard from the Chair of the Subcommittee on Fire Protection Licensing and Compliance, Mr Wayne Smith from the National Fire Industry Association, who provided a progress report on the work the Subcommittee has been leading. A draft final framework was tabled at the meeting for discussion and the Council endorsed the proposed new fire protection licensing framework and transitional arrangements.

The Chair of the QBC Board led a discussion about the need for building industry practitioners to maintain the currency of their knowledge through ongoing training and development and how this will lead to improved confidence in the industry. During the meeting, Mr Williams spoke about his commitment to improving the standards of professionalism in the industry and how the findings of the subcommittee have the potential to influence the national agenda. The terms of reference for the CPD subcommittee were approved and includes making recommendations on a framework for how compulsory CPD for professionals and trades within the industry might be adopted in Queensland in order to advance building quality, workplace safety and business practices, and thereby promote stability and confidence in Queensland’s building industry for consumers, investors and other stakeholders. 

The Council was provided with an update on the implementation of project bank accounts and that the Government is considering the findings of the report from the Building Industry Fairness and Reforms Implementation and Evaluation Panel. The Minister reconfirmed his intention to consult with the Council on the Government’s response to the Evaluation Panel’s recommendations before the report is tabled in Parliament. It was agreed that a subcommittee be established to provide feedback on any draft legislation that may be required to implement the agreed recommendations. 

The Minister spoke about the draft Government response to the Special Joint Taskforce’s report into subcontractor non-payment in the Queensland building industry. The Minister informed the meeting that legislative amendments required to implement the Taskforce’s recommendations will be considered as part of the same body of work implementing the Building Industry Fairness and Reforms Implementation and Evaluation Panel report. 

The Minister thanked members for their continued commitment to attending Council and Subcommittee meetings, reiterating that this collaboration between the Queensland Government and industry is helping to deliver a safer, fairer and more sustainable building and construction industry in Queensland.​

22 January 2020, Brisbane

Communique

On 22 January 2020, the Ministerial Construction Council (Council) held its first meeting of the year in Brisbane.

The Department of Housing and Public Works provided a summary of key discussions from the Building Ministers’ Forum (BMF) meeting held in Canberra on 13 December 2019. The BMF discussions focussed on the availability of professional indemnity insurance for certifiers and the formation of a Building Confidence Report (BCR) implementation team. The implementation team aims to action the BCR’s recommendations and address identified issues facing the building and construction industry.

The Council noted that BMF Ministers intend to meet in Brisbane in mid-2020, where matters including continuing professional development and women’s participation in the building and construction industry would be considered. An extraordinary meeting, intended for February, will progress reforms in relation to the design, construction and certification of complex buildings.

The Queensland Building and Construction Commission (QBCC) provided an update on the rollout of the new rules around Minimum Financial Requirements (MFR), including compliance with the requirement for all licensed contractors to provide MFR reports by 31 December 2019.

A key focus of the meeting was continued consultation on the proposed legislative amendments being progressed in response to the Building Industry Fairness Evaluation Panel (the Panel) report and Special Joint Taskforce, including security of payment and certification reforms. A draft Bill was circulated, and the Council noted that the draft was substantially consistent with the recommendations of the Panel.

The Council noted the appointment of Mr Peter Koutsoukis as Chair of the Safer Buildings Taskforce, formerly the Non-Conforming Building Products Taskforce. Feedback was also sought on the Queensland Government’s submission to the UK inquiry into the Grenfell tower tragedy. The submission outlines the steps taken by the Queensland Government and provides a model for other jurisdictions to identify non-conforming building products, support industry in managing these products and promote public safety.

The Council was also briefed on current approaches to ‘reverse factoring’ and the potential benefits of introducing environmental upgrade agreements (EUAs) for Queensland, noting that EUAs have delivered significant sustainability improvements for commercial buildings in other Australian jurisdictions.

The Council noted reports from its subcommittees including the review of restricted builder licences, fairness in contracting, fire protection and compliance, project leadership and governance, increasing female participation in the building and construction industry and compulsory continuing professional development.

The Minister thanked the members for their continuing commitment to the Council and contribution to delivering a safer, fairer and more sustainable building and construction industry for Queensland. The Council will reconvene, face to face and subject to need, in advance of the BMF meeting in mid-2020.

3 September 2019​, Townsville

On 3 September 2019, the Ministerial Construction Council met and held a Regional Round Table (MCC RRT) in Townsville during the Regional Sitting of the Queensland Parliament.

The Minister opened the forum by discussing the importance of the building and construction industry to the State and provided an overview of how the industry contributes to the Townsville area’s local economy and the $930.7 million infrastructure spend in the region in 2019-20.

The MCC RRT discussed issues impacting the industry nationally and were provided with an update on the work of the Building Ministers’ Forum in responding to these issues. The MCC RRT noted Queensland’s strong position, particularly with regard to a robust regulatory framework, non-conforming building products law and recent amendments relating to professional indemnity for certifiers which allow them to continue doing their job.

The round table provided an opportunity for MCC members and regional representatives of industry associations to discuss how government and industry can better prioritise the restoration of confidence in the sector, to promote investment and jobs growth.

The MCC RRT noted that work on unfair contract terms was progressing through an MCC subcommittee as a priority.
Industry representatives noted an update from the Chair of the MCC Subcommittee on Fire Protection Licensing and Compliance, who provided a progress report on the work they have been undertaking to modernise the fire protection licensing framework, a decision on which will be progressed to the MCC for approval out of session.

Attendees also noted a paper provided by Master Builders Queensland and Housing Industry Association on a proposal to raise the bar for residential builders, a program to assist new builders to improve their skills with practical business systems and processes. The MCC members at the roundtable agreed to establish a subcommittee to progress an education program as part of CPD proposals being considered in the work of the Building Confidence Implementation Team.

Industry representatives were also provided with an update on the National Construction Code and discussed upcoming Regulatory Impact Statements for accessible housing, energy efficiency and lead in plumbing.

The Minister thanked members for their ongoing commitment to the MCC through these meetings, subcommittees and other mechanisms. Working together, the State Government and industry are delivering a safer, fairer, more sustainable building and construction industry in Queensland.​​

3 December 2019, Gold Coast

Communique

On 3 December 2019, the Ministerial Construction Council (Council) met at the Southport Sharks Australian Football Club on the Gold Coast.

Mr Brett Bassett, Commissioner of the Queensland Building and Construction Commission (QBCC) provided an update about the mechanical services licensing framework, due to commence on 1 January 2020. The new laws recognise existing individuals and companies performing this work, while enabling existing workers two years to meet the requirements if they work for an appropriately licensed contractor.

Mr Bassett also advised members of the QBCC’s work relating to the Minimum Financial Requirements, which requires licensed contractors to provide the QBCC with annual reports. Mr Bassett reported that the new reporting requirements commenced on 1 January 2019 and has injected over $1.2 billion in capital into the industry. Industry engagement will be elevated to ensure maximum uptake to the 31 December 2019 reporting timeline.

Mr Bassett explained how the QBCC is continuing to assist building owners to complete the combustible cladding checklist through the Safer Building Program.

Following a discussion on project management, the Council agreed to establish a subcommittee to progress recommendations relating to leadership and governance of all projects, including by licensed project managers. This work will additionally inform Queensland’s position in relation to the design, construction and certification of complex buildings in accordance with Building Confidence Report recommendations.

Mr Philip Halton, Deputy Commissioner of the QBCC informed the members about the progress of the Building Confidence – Compulsory Continuing Professional Development (CCPD) subcommittee, which has met three times since being established in October 2019.The subcommittee continues to develop a CCPD framework which will support the industry and has recommended the framework for a national CPD to be informed by the proposed Queensland framework. The relevant subcommittee will develop a paper for the Council’s consideration on the competencies and professional standards for site and project managers.

The Minister gave members an update about the work of the Building Ministers’ Forum (BMF) and its upcoming meeting on 13 December 2019, including the establishment of a dedicated implementation team under the Australian Building Codes Board for the Building Confidence Report. The Minister invited input on the development of Queensland positions for BMF agenda items.

The Council was updated about the proposed legislative amendments being progressed in response to two independent reports into the building and construction industry and to enhance the building certification system. The Minister advised that implementing the government responses to the Building Industry Fairness Reforms Implementation and Evaluation Panel report and the Special Joint Taskforce report will further strengthen and expand Queensland’s nation-leading safeguards for subcontractor payments. The certification reforms will improve independence and the professional standards and compliance of certifiers. Council members were invited to participate in the relevant, existing subcommittees to provide feedback on the draft legislation in late 2019 and early 2020. Council members will also be consulted on the regulation detail that will support the security of payment reforms.

The Minister thanked all members for their ongoing engagement and support throughout 2019, which assisted the government to deliver a safer, fairer and more sustainable building and construction industry for Queensland.

Approved by the Ministerial Construction Council on 3 December 2019.

​2 July 2019, Brisbane

Communique

 The Ministerial Construction Council met in Brisbane on 2 July 2019 to continue discussions on the challenge of professional indemnity insurance for building industry professionals.

The Minister welcomed to the meeting representatives from the Insurance Council of Australia, the Australian Institute of Building Surveyors, the Royal Institution of Chartered Surveyors, Bovill Risk and Insurance Consultants and the Strata Community Association (Qld).

The Minister also welcomed PriceWaterhouseCoopers (PwC).

The Council noted the agreed principles from the 18 June 2019 meeting to address the current issues facing professional indemnity insurance for building certifiers. These principles focused on reducing risk, protecting the interest of consumers, industry and taxpayers and ensuring the safety of building occupiers.

The issues around the certification sector are long-standing and nationwide and are also influenced by global factors.

The Council noted the release of the PwC interim report as a valuable tool in establishing the true state of the Australian PI market and supports developing a shared understanding of the reasons behind the retraction of the market.

The Council noted the need to consider analysis and actions in the framework of:

• options to address the past actions of the building and construction industry
• options to ensure the current building and construction activity can continue
• options to continue strengthening key functions to underpin the industry’s future

The Council noted the core areas that need addressed including:

• strengthening PI insurance
• the non-compliant use of ACPs
• improving the system-wide issues

Queensland has been working to strengthen the building industry by addressing the issues identified, both in this state and nationally.

The Council noted the Queensland Government actions already implemented to improve and strengthen the certification industry. These include a commitment to reform in the Queensland Building Plan; the Non-conforming Building Product legislation; the Building Confidence Report implementation plan; and the work of the Non-conforming Building Products Audit Taskforce and the combustible cladding checklist; taskforce facilitated continuing professional development courses; and the development of a Materials Library.

The Council discussed options focused on:

• enabling certifiers to continue operating
• strengthening the cladding response
• calling for and supporting improvements in professional standards
• options which benefited from a nationally consistent approach.

The Council noted the intention of the Queensland Building and Construction Commission (QBCC) to remind certifiers of their obligation to disclose to insurers their history in relation to past, or possible future claims concerning combustible cladding.

The MCC agreed to the following overall approach:

1. the ban on Aluminium Composite Panels (ACPs) with a polyethylene core greater than 30% on new buildings and its installation on existing buildings.
2. the Queensland Government will proceed to make a regulation to conditionally allow Queensland licensed certifiers to hold professional indemnity insurance with cladding related exclusions for a time-limited period.
3. the Queensland Government call upon the Australian Government to ban the importation of combustible cladding with a PE core.
4. the Queensland Government call upon the Australian Government to work towards a nationally agreed approach to remediation for affected buildings.
5. Building certifiers are advised to notify PI insurers of claims made against them of circumstances which may give rise to future claim

The Council agreed on the overall approach and agreed MCC members will provide advice in response to the detail of the regulation from their organisation by 5 July 2019.

The Minister thanked members for their ongoing commitment to the Council and their contribution to delivering Queensland Building Plan reforms for a safer, fairer, more sustainable building and construction industry in Queensland.​​​​​​

18 June 2019, Brisbane

Communique

The Ministerial Construction Council met in Brisbane on 18 June 2019 to continue to discuss the challenge of professional indemnity (PI) insurance for building industry professionals.

The Minister welcomed to the meeting representatives from the Insurance Council of Australia, the Australian Institute of Building Surveyors and the Royal Institution of Chartered Surveyors. 

The Council welcomed PricewaterhouseCoopers who presented their analysis and observations of the PI insurance market to date. The Council noted changes in the international PI insurance market particularly for the building and construction segment and the downstream impact this has on the Australian PI insurance market. 

The Council acknowledged the reduction of providers of the PI Insurance market over the last decade, and the increases to insurance premiums.

The Council acknowledged that the issue extends beyond the border, with other jurisdictions advising of similar situations. 

The Council noted years of under-pricing of the Australian PI market, particularly relevant to private certifiers, with the average insurer losing 16 cents for every dollar earned. Claims are increasing substantially higher than premiums earned and we’re presently seeing a rebalancing of the smaller Australian PI insurance market as part of a global shift. 

The Council noted adequate certifiers are insured and can continue to provide certification services ongoing, and also acknowledged the responsibility of Local Government as a certifier of last resort.

The Council noted the progress of the Queensland Government’s Safer Buildings Audit Program, noting 22,000 building owners entered the process and there are currently 17 requiring some form of further action.

The Council agreed to the following principles to address current issues which focus on reducing risk, protecting the interest of consumers, industry and taxpayers and ensuring the safety of building occupiers:

1. Government intervention in the insurance market should be avoided (and any measures should mitigate risk transfer to the taxpayer)
2. Measures should have appropriate risk and cost profiles, and these should be proportionate with the public good outcomes they achieve
3. Measures should not free the insurance industry of any existing obligations, or indemnify professionals for negligent advice or poor conduct

1. Measures should support consumer protection, safety in the built environment and financial security for building owners
2. Measures should bolster confidence in the building industry regulatory framework
3. There is benefit in national consistency where there is a shared commitment to identify and progress actions.

The Council considered to the following proposed reforms and agreed that MCC members will provide formal advice from their organisation’s position by 20 June 2019: 

• improve professional standards by vigorously pursuing establishment of a national body
• reduce the risk of certain types of construction by reviewing the use of performance solutions on certain types of buildings
• maintain consumer protection standards by requiring certifiers to hold exclusion free PI insurance
• promote awareness of the regulatory environment, including local government’s certifying role
• consider longer-term solutions to the systemic issues raised by investigating an insurance product modelled on the Queensland Home Warranty Scheme but modified for multi-storey developments.

The Council requested that the Queensland Government call on the Australian Government to immediately progress the permanent labelling of cladding products to ensure the safety of the Queensland community is protected. 

The Council asked the Queensland Building and Construction Commission to continue its work, making use of Queensland’s non-conforming building product legislation, and work with the building product supply chain to ensure that product safety obligations are being met, that information to guide builders on the proper use of products is being made available, and no misrepresentations are being circulated in the market.

The Council noted Amendment One to NCC 2016 (effective March 2018) as well as NCC 2019 which clarified requirements relating to combustible cladding in the National Construction Code.

The Minister thanked members for their ongoing commitment to the Council and their contribution to delivering Queensland Building Plan reforms for a safer, fairer, more sustainable building and construction industry in Queensland.

​The Ministerial Construction Council met in Brisbane on 8 May 2019 to further industry consultation on building and construction industry reforms and discuss the emerging challenge of professional indemnity in​suranc​​e.

The Council agreed to establish a new fire protection licensing and compliance subcommittee to provide input to the proposed new fire protection licensing framework, technical qualifications and units of competency that will underpin the framework and strengthen compliance for fire protection generally. Terms of Reference for the subcommittee were noted by the Council.

The Council noted an update on the review into restricted builder licences concerning preparations of new Terms of Reference to guide the subcommittee's work. The Terms of Reference will include increased support from the Department of Housing and Public Works, as well as broader stakeholder consultation concerning any suggested changes, prior to the subcommittee making further recommendations to the Council.

The Council agreed to defer the work of the Fairness in Contracting subcommittee in developing a legal definition of 'unfair' contract terms for the building and construction industry until after the Federal election, as both major parties have committed to strengthen Federal legislation in response to the Unfair Terms in Contracts Review. In the meantime, the subcommittee, supported by a construction law specialist, will continue its work on identifying examples of unfair terms and conditions. The Minister for Housing and Public Works, Mick de Brenni, will raise unfair contract terms at the next Building Ministers' Forum.

In other business, the Council received an update from the Commissioner of the Queensland Building and Construction Commission (QBCC) on the implementation of the Minimum Financial Requirement (MRF) reforms following the commencement of Phase 2 of the reforms on 2 April 2019.

These reforms deliver on the Palaszczuk Government's commitment to strengthen the MFR and enable the QBCC to better regulate the industry. Importantly, these new laws will provide the QBCC with more appropriate information and tools to better detect and mitigate the impacts of insolvencies and corporate collapses in the industry.

The QBCC Commissioner also updated the Council on the progress of the Queensland Government's Safer Buildings Program, that comprises a three-part audit of potentially at-risk buildings. The program was introduced in response to combustible cladding issues. The Council endorsed a recommendation from the QBCC that the compliance period for Parts 2 and 3a of the Program be extended for two months, to 31 July and 31 October respectively, to assist property owners to assess their buildings.

The Minister welcomed to the meeting representatives from the Insurance Council of Australia, the Australian Institute of Building Surveyors and the Royal Institute of Chartered Surveyors. Together there was a discussion about the current issues impacting the availability and cost of professional indemnity insurance for building industry professionals including architects, engineers and building certifiers. The MCC agreed to support further consultation on short, medium- and long-term approaches to fair and appropriate professional indemnity insurance for building industry professionals. The MCC also agreed to provide information about Safer Buildings clearance information to support risk-based decision making.

The Minister thanked members for their ongoing commitment to the Council and their contribution to delivering Queensland Building Plan reforms for a safer, fairer, more sustainable building and construction industry in Queensland.​​​​​

The Ministerial Construction Council met in Brisbane on 30 January 2019 to further industry consultation on building and construction industry reforms.

The Queensland Government continues to implement the Queensland Building Plan (PDF, 1MB) (QBP) and work at a national level through the Building Ministers’ Forum.

The Minister confirmed the government priorities for 2019, as set out in the QBP, including implementation of the new Minimum Financial Requirements (MFR) regulation, consideration of the Building Industry Fairness Reforms Implementation and Evaluation Panel’s report, the outcome of which will determine possible commencement dates for the next stage of Project Bank Accounts.

The Council noted and endorsed updates from the MCC subcommittees for increasing female participation in the building and construction industry, addressing unfair contract terms and the restricted builders licence review.

The Council noted the report on the new MFR Framework, which is being implemented in stages. Phase 1 commenced on 1 January 2019, with the introduction of the Queensland Building and Construction Commission (Minimum Financial Requirements) Regulation 2018 (MFR Regulation). The remainder of the MFR reforms will be implemented as part of Phase 2, commencing 1 April 2019.

The Council discussed the key topics of the next Building Ministers Forum meeting, including the Building Confidence – Improving the effectiveness of compliance and enforcement systems for the building and construction industry across Australia Report (PDF, 4.3MB); review of security of payment laws; and Permanent Labelling for Aluminium Combustible Panels.

The Council endorsed the concept of a Sunshine Coast Industry Roundtable during the Government’s Governing from the Regions week, commencing 3 February 2019.

The Minister thanked members for their ongoing engagement with government through the Council and their contribution to delivering a safer, fairer, more sustainable building and construction industry in Queensland through the Queensland Building Plan reforms.

28 November 2018

The Ministerial Construction Council met in Brisbane on 28 November 2018 to further industry consultation on building and construction industry reforms.

The Queensland Government continues to implement the Queensland Building Plan and work at the national level through the Building Ministers’ Forum. Today, the Council was updated on matters relating to security of payment, including progress on the implementation of project bank accounts on certain government building projects valued between $1 million and $10 million.

The Council was advised that the Building Industry Fairness Reforms Implementation and Evaluation Panel has released a Discussion Paper (Archived) for public consultation with a closing date of February 2019. In December, the Panel will commence a series of industry forums to be held throughout the State. The industry forums will continue in February after the industry Christmas/New Year closure period.

The Council was made aware that Chapters 3 to 5 of the Building Industry Fairness (Security of Payment) Act 2017 will commence on 17 December 2018. This will include changes to progress payments, the process for adjudication, modernisation and simplification of subcontractors’ charges provisions and the introduction of  additional requirements to ensure that contractors are able to recover their retention money.

The Minister thanked members for their involvement in the Ministerial Construction Council Subcommittees and for their feedback on the Minimum Financial Requirements discussion paper (Archived). Changes will be delivered in two phases and will be supported by an awareness raising and education campaign.

The Council was advised that the Plumbing and Drainage Act 2018 was passed by Parliament on 12 September 2018 and that the draft Plumbing and Drainage Regulation and consultation on the draft Queensland Plumbing and Wastewater Code (Archived) has commenced.

The Council discussed the Queensland Building Plan licensing reforms, in particular the restricted builder licence. Members agreed to establish a Subcommittee to further investigate the appropriate scope of work for this licence.

Council members provided updates from the Subcommittees for increasing female participation in the building and construction industry and addressing unfair contract terms.

The Minister thanked the members for their ongoing engagement with government through the Council and their contribution to delivering a safer, fairer, more sustainable building and construction industry in Queensland through the Queensland Building Plan reforms.