Welcome to the second edition of Foundations!
Foundations continues to keep you up-to-date with legislative reform, operational changes, key types of complaints as well as current and future developments relevant to the home building industry in NSW.
Many thanks to everyone who responded to our first edition survey where we asked if you would be likely to take up the option of a three year licence at your next renewal. Over 91% of the more than 900 respondents to this survey said they would. Thanks for letting us know, sounds like this initiative is going to be very popular!
We also received a number of very positive comments about our use of an eNewsletter to keep you up-to-date. Thanks for the feedback and suggestions about how best to keep you informed.
Renew online and save
Fair Trading’s new online licence renewal service is an easy and quick way to renew your home building licence or certificate. You’ll save money too, with a discount of around $6.00 if you lodge your renewal electronically.
The on-line facility is being rolled out in a number of stages through the NSW Government Licensing Service to make sure the system is working effectively. The first group who are able to use the service includes all qualified supervisors and tradesperson certificate holders and by the end of April we anticipate the service should be available to all licence holders.
For assistance in using the service, contact Fair Trading on 13 32 20.
Back to top
Your questions answered
Gerry L asked why we hadn’t included any information about the recent changes to rules governing tickets such as cherry pickers, hoist, and excavators etc. These changes are actually administered by Workcover, and you can find all information you need from the Workcover website.
Stephen W raised a point about our article on mutual recognition and interstate licensing arrangements and wanted to know whether building consultants are also included in the arrangements. We can confirm that, yes, they are. Under mutual recognition, building consultants will be able to do the same work they were entitled to do in their original state or territory. For more information go to the Interstate licences page on the Fair Trading website.
If you would like to raise any issues about this edition of Foundations or have a question you think other readers would be interested in, please send us an email to foundations@oft.commerce.nsw.gov.au
Back to top
Free seminars and workshops
Fair Trading is running free seminars across NSW throughout 2008 for licence and certificate holders. The Office of Industrial Relations (OIR) is also offering workshops aimed at small business. Builders and swimming pool builders can earn CPD points for attending these activities.
The 2 hour Fair Trading seminar is relevant to the CPD topic of Compliance and will cover key aspects of the Home Building Act 1989 as well as the Consumer Trader and Tenancy Tribunal Act 2001 Visit the Fair Trading website for date and location details.
OIR seminars
OIR is also running sessions focussing on industrial issues useful for small business. For example, the session on Industrial Relations in NSW explains the changes to federal legislative requirements and covers general issues in relation to wages, record keeping and leave entitlements. Other workshops focus on recruiting, retaining and managing employees, writing policies and introducing flexibility in the workplace. Visit the OIR website for date and location details.
These workshops can count as 1 point per hour CPD activities for builders and pool builders and relate to the topic areas of Legislation and Compliance. (OIR are able to provide the correct record of attendance for any licensee who attends a workshop for CPD purposes.)
Back to top
Fair Trading presence at Trade nights in 08
Look out for Fair Trading building inspectors at your local trade night conducted by industry associations and TAFE throughout NSW during 2008.
Inspectors will be available to discuss any of your questions about Fair Trading services, the new on-line licence renewal system, recent changes to the Continuing Professional Development (CPD) program for builders and pool builders and more.
Back to top
Non-compliance, its just not worth it
The Home Building Service runs regular programs across the State to monitor compliance with the law. Last November we focussed on the use of home building contracts and whether or not licence and certificate holders were using contracts that complied with the Home Building Act 1989. The results show that not everyone visited by Fair Trading was compliant.
During Operation Augur, Fair Trading inspectors visited 281 sites along the NSW south coast and made contact with 301 individuals. As a result forty penalty notices were issued (totalling $27,250 in possible fines), with fifteen penalty notices specifically involving contracts that did not comply with the Act.
Having a proper contract in place is important for both traders and consumers. A contract sets out exactly what is agreed and what both parties are expected to do. This helps avoid misunderstandings as well as disputes that end up before the Consumer, Trader and Tenancy Tribunal.
Contracts that comply with the Act can currently be purchased from Fair Trading by calling 13 32 20 or through various industry associations.
Back to top
Dodgy electrician convicted
AAKA Pty Ltd and its director, Ashmit Kumar, were convicted recently in Sydney for breaches of the home building and electrical consumer safety laws and ordered to pay a total of $128,000 in fines and costs.
Kumar undertook illegal air conditioning and electrical work across Sydney suburbs including Clovelly, Mosman and Wattle Grove. He posed a serious danger to himself, to his customers and to other electrical contractors who may have to work on the same jobs later.
AAKA Pty Ltd was convicted on three counts of contracting to do residential building work (electrical work) while unlicensed. The illegal activities included unqualified air conditioning work, carrying out a test on an electrical installation without being qualified and carrying out electrical installation work that was not in accordance with Australian/New Zealand wiring rules.
Breaches of these laws are taken extremely seriously and as this case shows, contractors who do not comply can expect a heavy penalty.
Back to top
Enforcement action
In the last edition of Foundations we reported on some of the enforcement actions taken by Fair Trading under the Home Building Act. Every quarter a report listing all enforcement actions is published on the Fair Trading website.
Enforcement action is required whenever a licensee has engaged in unlawful conduct. The Office of Fair Trading will continue to take whatever action is necessary to bring to account any licensee who breaks the law.
There are now 2 additional reports available. For details about enforcement actions taken in the September and December 2007 quarters, visit the Enforcement action page on the Fair Trading website.
Back to top
A new Home Building Act
A re-write of the Home Building Act 1989 is underway. The aim is to make the requirements of the Act easier to understand, by clarifying the structure and objectives of the Act and the Regulations, placing relevant provisions together and removing the inconsistencies.
In September 2006, the Home Building Licensing Review report (Moss Report) made 29 recommendations for the reform of home building licensing, including that the Act be rewritten to take into account the recommended changes. The government is committed to follow this recommendation and many of the recommendations made by the Moss Report will be taken into consideration in drafting the new legislation.
Late last year Fair Trading began consulting with industry groups. The consultation process will be ongoing and further meetings are planned with stakeholders throughout the year. At this stage, an exposure draft will be released during the second half of 2008.
Back to top
Drummy floor tiles
The current debate on drummy floor tiles and issues around adhesives began as a seemingly straight-forward consumer complaint to Fair Trading.
The Home Building Service investigated the complaint during late 2007 and initially decided that the work was defective due to parts of the floor becoming ‘drummy’. However, the tiler argued that the problem seemed to be with the tile adhesive not working effectively over an extended period and cited other instances where the problem had occurred to support of his argument. Other tilers who had similar experiences also raised the issue with Home Building.
As a result Home Building undertook research and held detailed consultations with specialists. It found that there was a possible issue with the adhesive and that although a small portion of the floor tiles were ‘drummy’, it was not excessive and was well within the tolerances detailed in the Guide to Standards and Tolerances.
The issue of ‘drummy’ floor tiles has caused much contemporary debate. The tiling industry has been consulting with adhesives manufacturers and builders in an effort to find a long-term solution to a possible generic adhesion problem and its likely causes.
In the meantime, there are strong views within the industry about whether ‘drummy’ tiles in older houses should be considered a defect when there is considerable evidence that they do not break up, become loose or lose their grout, and that they perform just as well over time as tiled floors that have not become ‘drummy’.
The Home Building Service will be convening a meeting with industry stakeholders and manufactures to determine causes of the problems. The outcome of that meeting will be reported on in the next issue of Foundations.
Back to top
New industry complaint data on the way
In response to industry feedback, the next issue of Foundations will provide an analysis and graphical breakdown of residential building complaints in NSW that have been lodged with Fair Trading. This information can help with risk management and in identifying areas for skills upgrades and future staff training.
The statistics will show complaint percentages according to:
Look out for the next edition of Foundations in June, where there will be a link to the new data.
Back to top
Home Warranty Insurance Scheme Board
Data about Home Warranty insurance policies and claims is now available on the Fair Trading website. Since September 2005, insurers have been required to provide quarterly reports to Fair Trading.
The information has been collated and published to ensure transparency and provide the building industry and homeowners with data about the financial progress of the scheme. It will also correct some misconceptions as to the size of the home warranty market, premium levels and claim payments.
Reports are currently available for the quarters ending 31 March and 30 June 2007, and new reports will added to the website on a regular basis. It’s expected that the published data will evolve over time to enhance its value for all industry participants.
Access the reports from the Home Warranty Insurance Scheme Board page on the Fair Trading website.
Back to top
Changes to the bonded asbestos threshold
From 1 January 2008, a WorkCover NSW licence is required to remove 10 square metres or more of bonded asbestos (the size of a small bathroom) in NSW. If you are a builder, bathroom renovator, kitchen renovator, electrician, gyprocker, carpenter or similar there is a good chance you will work with asbestos and need to be aware of this change.
This effectively means that anyone removing kitchen or bathroom walls or eaves linings during renovation work will need to have undertaken the appropriate training courses and hold a current Bonded Asbestos Licence issued by WorkCover NSW.
Your current building or trade licence issued by the Office of Fair Trading does not authorise you to work with asbestos above 10m².
For further information on how to apply for a Workcover Bonded Asbestos Licence, go to Workcover NSW or telephone 13 10 50.
Back to top
New wiring rules commence 1 June 2008
The new edition of the Australian/New Zealand Standard for Wiring Rules (AS/NZS 3000:2007) is due to begin in NSW on 1 June 2008. The revised edition, which was released in late 2007, expands on the issues relating to electrical installations and improving safeguards.
It has an increased emphasis on common, practical, cost-effective and flexible methods to achieve safety compliance, fitness for purpose and a level of good practice.
Changes to the new edition reflect the increasing use of Residual Current Devices (RCDs) to all socket outlets and lighting circuits rated up to 20 amps and include a standard restricting the number of circuits that can be connected to any one RCD and the required division of lighting circuits over RCDs.
Other key changes to the Wiring Rules Standard include:
Back to top
TAFE teachers wanted
Help skill the next generation of young tradespeople and assist the State’s efforts to reduce trade shortages. If you are interested in an opportunity for employment as a part-time teacher, positions are regularly advertised across all TAFE NSW Institutes on the NSW Government’s jobs website, or visit the TAFE NSW website for additional information.
Back to top
Foundations continues to keep you up-to-date with legislative reform, operational changes, key types of complaints as well as current and future developments relevant to the home building industry in NSW.
Many thanks to everyone who responded to our first edition survey where we asked if you would be likely to take up the option of a three year licence at your next renewal. Over 91% of the more than 900 respondents to this survey said they would. Thanks for letting us know, sounds like this initiative is going to be very popular!
We also received a number of very positive comments about our use of an eNewsletter to keep you up-to-date. Thanks for the feedback and suggestions about how best to keep you informed.
Renew online and save
Fair Trading’s new online licence renewal service is an easy and quick way to renew your home building licence or certificate. You’ll save money too, with a discount of around $6.00 if you lodge your renewal electronically.
The on-line facility is being rolled out in a number of stages through the NSW Government Licensing Service to make sure the system is working effectively. The first group who are able to use the service includes all qualified supervisors and tradesperson certificate holders and by the end of April we anticipate the service should be available to all licence holders.
For assistance in using the service, contact Fair Trading on 13 32 20.
Back to top
Your questions answered
Gerry L asked why we hadn’t included any information about the recent changes to rules governing tickets such as cherry pickers, hoist, and excavators etc. These changes are actually administered by Workcover, and you can find all information you need from the Workcover website.
Stephen W raised a point about our article on mutual recognition and interstate licensing arrangements and wanted to know whether building consultants are also included in the arrangements. We can confirm that, yes, they are. Under mutual recognition, building consultants will be able to do the same work they were entitled to do in their original state or territory. For more information go to the Interstate licences page on the Fair Trading website.
If you would like to raise any issues about this edition of Foundations or have a question you think other readers would be interested in, please send us an email to foundations@oft.commerce.nsw.gov.au
Back to top
Free seminars and workshops
Fair Trading is running free seminars across NSW throughout 2008 for licence and certificate holders. The Office of Industrial Relations (OIR) is also offering workshops aimed at small business. Builders and swimming pool builders can earn CPD points for attending these activities.
The 2 hour Fair Trading seminar is relevant to the CPD topic of Compliance and will cover key aspects of the Home Building Act 1989 as well as the Consumer Trader and Tenancy Tribunal Act 2001 Visit the Fair Trading website for date and location details.
OIR seminars
OIR is also running sessions focussing on industrial issues useful for small business. For example, the session on Industrial Relations in NSW explains the changes to federal legislative requirements and covers general issues in relation to wages, record keeping and leave entitlements. Other workshops focus on recruiting, retaining and managing employees, writing policies and introducing flexibility in the workplace. Visit the OIR website for date and location details.
These workshops can count as 1 point per hour CPD activities for builders and pool builders and relate to the topic areas of Legislation and Compliance. (OIR are able to provide the correct record of attendance for any licensee who attends a workshop for CPD purposes.)
Back to top
Fair Trading presence at Trade nights in 08
Look out for Fair Trading building inspectors at your local trade night conducted by industry associations and TAFE throughout NSW during 2008.
Inspectors will be available to discuss any of your questions about Fair Trading services, the new on-line licence renewal system, recent changes to the Continuing Professional Development (CPD) program for builders and pool builders and more.
Back to top
Non-compliance, its just not worth it
The Home Building Service runs regular programs across the State to monitor compliance with the law. Last November we focussed on the use of home building contracts and whether or not licence and certificate holders were using contracts that complied with the Home Building Act 1989. The results show that not everyone visited by Fair Trading was compliant.
During Operation Augur, Fair Trading inspectors visited 281 sites along the NSW south coast and made contact with 301 individuals. As a result forty penalty notices were issued (totalling $27,250 in possible fines), with fifteen penalty notices specifically involving contracts that did not comply with the Act.
Having a proper contract in place is important for both traders and consumers. A contract sets out exactly what is agreed and what both parties are expected to do. This helps avoid misunderstandings as well as disputes that end up before the Consumer, Trader and Tenancy Tribunal.
Contracts that comply with the Act can currently be purchased from Fair Trading by calling 13 32 20 or through various industry associations.
Back to top
Dodgy electrician convicted
AAKA Pty Ltd and its director, Ashmit Kumar, were convicted recently in Sydney for breaches of the home building and electrical consumer safety laws and ordered to pay a total of $128,000 in fines and costs.
Kumar undertook illegal air conditioning and electrical work across Sydney suburbs including Clovelly, Mosman and Wattle Grove. He posed a serious danger to himself, to his customers and to other electrical contractors who may have to work on the same jobs later.
AAKA Pty Ltd was convicted on three counts of contracting to do residential building work (electrical work) while unlicensed. The illegal activities included unqualified air conditioning work, carrying out a test on an electrical installation without being qualified and carrying out electrical installation work that was not in accordance with Australian/New Zealand wiring rules.
Breaches of these laws are taken extremely seriously and as this case shows, contractors who do not comply can expect a heavy penalty.
Back to top
Enforcement action
In the last edition of Foundations we reported on some of the enforcement actions taken by Fair Trading under the Home Building Act. Every quarter a report listing all enforcement actions is published on the Fair Trading website.
Enforcement action is required whenever a licensee has engaged in unlawful conduct. The Office of Fair Trading will continue to take whatever action is necessary to bring to account any licensee who breaks the law.
There are now 2 additional reports available. For details about enforcement actions taken in the September and December 2007 quarters, visit the Enforcement action page on the Fair Trading website.
Back to top
A new Home Building Act
A re-write of the Home Building Act 1989 is underway. The aim is to make the requirements of the Act easier to understand, by clarifying the structure and objectives of the Act and the Regulations, placing relevant provisions together and removing the inconsistencies.
In September 2006, the Home Building Licensing Review report (Moss Report) made 29 recommendations for the reform of home building licensing, including that the Act be rewritten to take into account the recommended changes. The government is committed to follow this recommendation and many of the recommendations made by the Moss Report will be taken into consideration in drafting the new legislation.
Late last year Fair Trading began consulting with industry groups. The consultation process will be ongoing and further meetings are planned with stakeholders throughout the year. At this stage, an exposure draft will be released during the second half of 2008.
Back to top
Drummy floor tiles
The current debate on drummy floor tiles and issues around adhesives began as a seemingly straight-forward consumer complaint to Fair Trading.
The Home Building Service investigated the complaint during late 2007 and initially decided that the work was defective due to parts of the floor becoming ‘drummy’. However, the tiler argued that the problem seemed to be with the tile adhesive not working effectively over an extended period and cited other instances where the problem had occurred to support of his argument. Other tilers who had similar experiences also raised the issue with Home Building.
As a result Home Building undertook research and held detailed consultations with specialists. It found that there was a possible issue with the adhesive and that although a small portion of the floor tiles were ‘drummy’, it was not excessive and was well within the tolerances detailed in the Guide to Standards and Tolerances.
The issue of ‘drummy’ floor tiles has caused much contemporary debate. The tiling industry has been consulting with adhesives manufacturers and builders in an effort to find a long-term solution to a possible generic adhesion problem and its likely causes.
In the meantime, there are strong views within the industry about whether ‘drummy’ tiles in older houses should be considered a defect when there is considerable evidence that they do not break up, become loose or lose their grout, and that they perform just as well over time as tiled floors that have not become ‘drummy’.
The Home Building Service will be convening a meeting with industry stakeholders and manufactures to determine causes of the problems. The outcome of that meeting will be reported on in the next issue of Foundations.
Back to top
New industry complaint data on the way
In response to industry feedback, the next issue of Foundations will provide an analysis and graphical breakdown of residential building complaints in NSW that have been lodged with Fair Trading. This information can help with risk management and in identifying areas for skills upgrades and future staff training.
The statistics will show complaint percentages according to:
- specific industry sectors
- type of work
- nature of the work that is the subject of complaints.
Look out for the next edition of Foundations in June, where there will be a link to the new data.
Back to top
Home Warranty Insurance Scheme Board
Data about Home Warranty insurance policies and claims is now available on the Fair Trading website. Since September 2005, insurers have been required to provide quarterly reports to Fair Trading.
The information has been collated and published to ensure transparency and provide the building industry and homeowners with data about the financial progress of the scheme. It will also correct some misconceptions as to the size of the home warranty market, premium levels and claim payments.
Reports are currently available for the quarters ending 31 March and 30 June 2007, and new reports will added to the website on a regular basis. It’s expected that the published data will evolve over time to enhance its value for all industry participants.
Access the reports from the Home Warranty Insurance Scheme Board page on the Fair Trading website.
Back to top
Changes to the bonded asbestos threshold
From 1 January 2008, a WorkCover NSW licence is required to remove 10 square metres or more of bonded asbestos (the size of a small bathroom) in NSW. If you are a builder, bathroom renovator, kitchen renovator, electrician, gyprocker, carpenter or similar there is a good chance you will work with asbestos and need to be aware of this change.
This effectively means that anyone removing kitchen or bathroom walls or eaves linings during renovation work will need to have undertaken the appropriate training courses and hold a current Bonded Asbestos Licence issued by WorkCover NSW.
Your current building or trade licence issued by the Office of Fair Trading does not authorise you to work with asbestos above 10m².
For further information on how to apply for a Workcover Bonded Asbestos Licence, go to Workcover NSW or telephone 13 10 50.
Back to top
New wiring rules commence 1 June 2008
The new edition of the Australian/New Zealand Standard for Wiring Rules (AS/NZS 3000:2007) is due to begin in NSW on 1 June 2008. The revised edition, which was released in late 2007, expands on the issues relating to electrical installations and improving safeguards.
It has an increased emphasis on common, practical, cost-effective and flexible methods to achieve safety compliance, fitness for purpose and a level of good practice.
Changes to the new edition reflect the increasing use of Residual Current Devices (RCDs) to all socket outlets and lighting circuits rated up to 20 amps and include a standard restricting the number of circuits that can be connected to any one RCD and the required division of lighting circuits over RCDs.
Other key changes to the Wiring Rules Standard include:
- the extended application of Residual Current Devices (RCDs) and testing for correct operation
- protection against arcing faults
- requirements for selectivity (discrimination) between circuits
- strengthening of requirements for the prevention of the spread of fire
- enhanced requirements for recessed luminaries
- requirements for sanitisation areas in the food processing industry.
Back to top
TAFE teachers wanted
Help skill the next generation of young tradespeople and assist the State’s efforts to reduce trade shortages. If you are interested in an opportunity for employment as a part-time teacher, positions are regularly advertised across all TAFE NSW Institutes on the NSW Government’s jobs website, or visit the TAFE NSW website for additional information.
Back to top
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