However, last year’s changes to the NSW Environmental Planning and Assessment Act 1979 removed the terms Interim and Final and therefore the use of such Certificates altogether. Once the legislation is amended, the only way a building will be authorised for occupancy or use is if an Occupation Certificate is issued at the completion of the project, or a stage of the project.

The change was originally scheduled for 1 September 2018, but it was postponed for 12 months to allow time for the industry to adjust. Seven months later, there has been no amendment to the legislation or specific advice about how it will be implemented, except for a reassurance that it will not affect the ability to have staged occupations.

How will it work?

According to the NSW Department of Planning and Environment, it’s business as usual until the new building and certification provisions take effect. After 1 September 2019, anyone looking to occupy or use a partially completed building (or part of a building) will require an Occupation Certificate, rather than an Interim or Final Occupation Certificate.

The problem as we perceive it lies in satisfying Council’s conditions of consent, in particular those which must be completed before an Occupation Certificate can be issued. In large and complex projects, it’s often the case that DA conditions are staggered relative to the staging of the development. i.e. prior to issue of the Final Occupation Certificate or prior to the issue of an Interim Occupation Certificate.

Under the proposed provisions it appears this ability has been removed.

What impact will it have?

The biggest question is how will Council allow for these changes when drafting conditions of consent, in particular those relating to Occupation Certificates on staged development. It’s likely that the onus will be on developers to make sure they have considered how the project will be staged right from the beginning, so Council can structure conditions in a way that’s consistent with the staged occupation.

However, existing development consents that presently have staging based upon Interim and Final Occupation Certificates will be subject of these provisions, if an Occupation Certificate is applied for post 1 September 2019. This existing consents may warrant Section 4.55 modifications to permit staging under these new legislative provisions.

What should you do?

There is a lot of uncertainty in the industry, given the lack of information on the proposed legislation changes. We certainly recommend that you seek legal advice about how it may impact your current and future building contracts and development programs, so you’re prepared for the transition away from Interim and Final Occupation Certificates moving forward.

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It’s one of the most misunderstood development types in NSW. And while the legislation governing development on Crown land was recently revised with the aim of providing a simpler and more streamlined process, these changes related mostly to the management of Crown land, leaving the approval process for development by a Crown authority (either on Crown land or otherwise) relatively complex.

The main problem I come across at NSW Town Planning is confusion around the difference between exempt development and development without consent. While they sound similar, they are very different in terms of how they’re dealt with under the legislation.

Exempt development

This typically covers low-risk works, such as those undertaken by families around their home. To be eligible for an exempt development, the project must have minimal impact (such as a paved area in a backyard, ramps or a letterbox installation). Non-residential works, including works by or on behalf of a government authority, may also be exempt if they meet specified thresholds.

No formal approval or certificate is required for exempt development. While technically, no exempt development additional provisions also enable the use of Crown buildings for Crown purposes without further approval in some instances.

Development without consent

Development without consent generally covers works by or on behalf of a public authority, such as government infrastructure or a building used for public administration purposes (such as a police station or court).

Many government clients believe relying on development without consent means they don’t need to go through an approval process, but this is not the case. Government bodies have a statutory duty to consider the impact of activities on the environment (which extends beyond ecological issues to include matters such as social, cultural, and economic aspects) under the Environmental Planning and Assessment Act 1979 (the Act), even for minor activities.

While a Development Application (DA) from Council is not required for development without consent, there is a process you will need to follow to obtain a permit before you start construction, if the proposal is deemed an activity. Part 5 of the Act establishes a safety net for such works and may identify that a permit or approval is required despite no development consent being required. At the very least, it requires consideration of potential impacts and a response to those impacts.

Step 1: Review of Environmental Factors (REF)

The most common report used to consider environmental impacts by an activity carried out by or on behalf of Crown authority is the REF. This should be your first step, and is commissioned for, or prepared by, the Crown body itself.

The objective of the REF is to consider the environment impact of the activity, such as water quality or heritage concerns. The REF must be considered by the authority that administers the portfolio that is proposing the activity. Government bodies can be both the applicant and the determining authority in this this instance.

The onus is on the authority to ensure appropriate considerations and any steps are undertaken. The REF may also require referral to authorities under other Ministerial portfolios, to ensure the full range of potential impacts are considered. It’s a very unique situation. And while it can be tempting to take a shortcut and skip this process, it’s important to have a record of your due diligence if nothing else.

Step 2: Investigate or proceed

If the REF determines that the activity has potential for an environmental impact, there must be further investigation. This involves developing an environmental impact statement, which details the impacts and how these are intended to be mitigated. This becomes a public engagement tool and used to seek feedback from the community.

If the REF shows there will be no, minimal or even a reasonable environmental impact that can be managed, the Crown authority may make the decision to move forward with the activity. If the project is to proceed, a Crown certificate is required to ensure compliance with relevant building standards.

An easier way forward

There is an alternative way to gain approval for Crown developments, if the development without consent pathway seems too lengthy and/or complex. A Crown body simply needs to apply for a Crown Development Application (Crown DA) through the traditional process, most commonly the local Council.

As a Crown DA, the consent authority does not have the ability to refuse such an application without the approval of the Minister. The consent authority is also bound to a statutory timeframe for determining a Crown development application. Should a determination not be granted after 70 days from lodgement, the Crown body may refer the application to the Minister or relevant regional panel for determination.

Even if the consent authority applies conditions to the Crown DA, these conditions need to be approved by the Crown body or the Minister. While some may see this as a conflict of interest, seeing as the Crown body must approve its own DA, it’s often a simpler process and one that many Crown clients prefer as it remains more transparent than development without consent.

Depending on the nature of the proposal. we recommend the Crown DA for most, if not all, of our Crown clients. An exception to this would be if the works were so small that undertaking an REF would still be simpler than waiting for Council to process the DA in the statutory period.

No matter how you proceed, it’s important to remember that you can’t undertake work on Crown land without considering your obligations under the Crown Land Management Act 2016 which commenced on 1 July 2018, which may restrict certain land to certain activities, and the Environmental Planning and Assessment Act 1979 more generally if Crown activities are proposed on non-Crown land.

After all, you wouldn’t bulldoze a national park to build a road without considering the impact on the environment. Why should alterations and additions of a government building located in the CBD be any different? The two Acts aren’t perfect, but they are a safety net that ensures activities by the NSW State Government do not adversely impact the environment.

For more information on your obligations when it comes to developing on Crown land, contact Nathaniel Murray at NSW Town Planning.

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Governments around the world are now using blockchain for everything from identity management and drivers’ licences, to service delivery and data storage. But there are clear benefits for the building sector, too.

The number of parties involved, the complexity of standards and legislation, and the need for trust and verification across the supply chain make blockchain an ideal tool to manage construction projects.

What is blockchain?

A blockchain is a database of information, such as transactions or records, that are stored securely across a network of computers. This information is stored chronologically and can be viewed by users with the right permissions. However, blockchain is decentralised, which means there is no single owner of the information such as a bank or government.

Once published, the information on the blockchain cannot be changed or removed. Every transaction has a digital fingerprint related to the transaction before and after it, making it completely secure and trustworthy. It becomes a single source of truth, which can be accessed by anyone with the right permissions, in real time.

How can blockchain be used?

Blockchain is not only a technological innovation, but a business tool that has the potential to transform the building and construction sector.

Smart contracts

Smart contracts in blockchain work on an if/then principle. For example, if the Development Application is approved then a Construction Certificate is issued. If the developer confirms the construction is complete, then the Accredited Certifier can commence site inspections for an Occupation Certificate.

This makes it clear to all parties when tasks are performed and when payments need to be made. There is no middle man, lost paperwork, or questions about compliance. There is full visibility of the project, as well as a record of any works performed over the life-cycle of the building.

Smart contracts create trust and transparency among all parties involved. For example, instead of documentation held by Council, government, clients, Principal Certifying Authorities, developers and sub-contractors, all parties could access the relevant blockchain and perform their role according to their contract.

Identity verification

Blockchain provides users with secure and verified Digital IDs, which could help companies build a reputation in the industry and ensure they can be trusted by new clients. Checking qualifications, memberships to industry bodies and evidence in tenders would not be required, streamlining the procurement process at every level of the project.

Supply chain management

Tracking building products through the supply chain could reduce the risk the use of non-conforming building products in Australian developments. As manufacturers must provide a legitimate certificate to the client, blockchain may be useful in verifying the accuracy and trustworthiness of lab accreditation.

It could also provide access to a transparent record of products used in a development, reducing the risk of doing business with new suppliers and providing more accurate forecasting on projects. In the case of mismanagement or faulty materials, products could be quickly and accurately tracked back to the manufacturer.

While blockchain may seem like a pipe dream, organisations in Australia are already looking to implement the technology. Probuild, one of Australia’s largest building firms, has partnered with a US company to manage its global supply chain. Meanwhile, CSIRO has partnered with a law firm and IBM to help Australian businesses use blockchain to create smart contracts.

According to the International Data Corporation, spending in the blockchain technology market globally is expected to grow to $11.7 billion by 2022. With the Australian Government proactively advancing the blockchain industry, it’s only a matter of time until we start seeing more companies in the building sector use blockchain to benefit their development.

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Verification methods

The NCC 2019 will have a greater focus on performance solutions than deemed-to-satisfy solutions. There will be 20 new verification methods introduced, which aim to reduce non-compliances resulting from the poor application of performance solutions.

The main areas covered by the new verification methods are artificial lighting, natural lighting, energy efficiency and private bushfire shelters. They include:

• Fire safety
• Room height
• Bushfire protection
• Class 9C noise
• Natural lighting
• Inbuilt overflow of vessels
• Ramps
• Combustion appliances.

Energy efficiency

The NCC has also overhauled its approach to commercial energy efficiency (Section J), with new verification methods that will help organisations achieve NABERS and Green Star certifications. It’s part of a broader government initiative to reduce commercial energy consumption by up to 35 per cent.

By shifting from energy-based metrics to greenhouse gas emission metrics, the NCC 2019 will place an equal focus on heating and cooling, which will improve the performance of buildings. There are also more stringent compliance requirements for glazing, insulation, lifts, fans and pumps, chillers, boilers, PAC Units, cooling towers and lights.

The energy efficiency provisions will have a transition period of one year. Before 1 May 2020, either the NCC 2016 or NCC 2019 can be used.

Fire safety

Another focus of NCC 2019 is providing higher levels of fire safety for those who often fail to react to alarms, such as young children and older people. It includes requirements for sprinklers to be installed in apartment buildings and other residential buildings over four storeys and under 25 metres in effective height.

To make the Code easier to understand and implement, the Australian Building Codes Board has revised the wording, structure and terminology of the NCC. General requirements have also been changed to governing requirements. These are all significant changes that we believe will lead to a safer built environment for all Australians.

For more information on these changes, or to find out whether they will affect your development, get in touch with our Accredited Certifiers.

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• building designers (including engineers) must declare that building plans will comply with the Building Code of Australia
• builders must declare that buildings have been built according to their plans
• building designers and builders must be registered for this purpose
• clarifying the law to ensure homeowners and owners corporations have the right to compensation where a building practitioner has been negligent.

A Building Commissioner will also be appointed to act as the consolidated building regulator in NSW, with responsibility for licensing and auditing practitioners. The Association of Accredited Certifiers (AAC) has been calling for reforms to the construction industry for some time, and welcomes the Government’s response.

In January, the AAC released an 8-point plan to improve accountability in the construction sector in NSW and provide better protection for owners and residents. The plan includes the following points:

1. All professionals involved in the design, installation and approval of buildings must be accredited/registered and insured.
2. All key personnel contributing to the construction of a building that are not accredited/registered must be licensed and be required to prove their competency at regular intervals.
3. All documentation relating to the certification of a building should be in a standard form developed by industry and Government.
4. It must be a mandatory requirement for all persons involved in the certification of any engineering design or technical aspect of construction (e.g. fire walls, acoustic walls, bushfire, etc) to issue a Certificate of a standard form and generated by a Government managed ‘Certificate Generator.’
5. A comprehensive auditing program is required that takes a holistic approach to managing the performance and behaviour of not just Accredited Certifiers but all registered or licensed persons. This program needs to be developed by industry Associations under a watchful eye of the Government and include input from experts in the fields of insurance and risk management. Participation in this Auditing/Risk Management program should be compulsory and funded by a levy with the results provided direct to Government through a predetermined reporting mechanism.
6. All parties involved in the building product supply chain need to be accountable for the products that they prescribe, specify, purchase and use in the construction of a building. It is critical to the longevity and structural soundness of buildings that the products and materials procured and used are ‘fit for purpose’ and comply with Australian building laws and standards.
7. Amend the BASIX Scheme to allow Applicants to design buildings based on predetermined standards such as the size of water tanks, the thermal rating of wall and roof insulation, permissible window area sizes, and the like. Compliance with Deemed To Satisfy (DTS) provisions of the Building Code of Australia (BCA) should be made available to Applicants within the performance based framework of the Building Code of Australia (BCA) similar to Section J or part of that Section.
8. Strengthen the administration of building regulation by bringing building regulation and control functions currently undertaken separately within Government into one portfolio reporting to one Minister.

The Government’s response goes some way to achieving these reforms, but questions have been raised about the lack of urgency around implementation and whether it will address the shortcomings outlined in the Building Confidence Report. Like many in the industry, MBC will be closely following the Government’s plans as they progress.

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Our ongoing growth reflects what we believe is a positive trend in the industry, one that we’re confident will continue in the decades to come. It’s also the reason for our recent move to a larger office space. And while we could have our pick of locations in the Sydney CBD, we decided to remain in Manly.

It’s not just MBC that’s attracted to the beachside culture of the northern beaches. Leading organisations have moved to Manly to reach new customers and give employees a better work-life balance. For example, Macquarie Bank has opened a private wealth division in Manly, positioning itself close to the high net wealth individuals that it serves.

Point72 Asset Management, one of the world’s top hedge funds, has also set up shop on Mona Vale Road. The decision was made to cater to its star recruits, with the aim of using Sydney’s lifestyle and quality education to attract global talent. The fund now performs multi-million dollar trades from its office in Warriewood.

According to a survey by the City of Sydney, there was a 15 per cent rise in the number of inner city jobs in the five years to 2017. However, the amount of business floor space only increased 4.5 per cent, well behind the rate of employment growth. The construction of the Metro rail system has further tightened the availability of office space in the CBD.

Many NSW Government departments are already transitioning to new offices in Parramatta, while the new Western Sydney Aetropolis will draw more organisations to innovation hubs across the region. Like MBC, these organisations are reconising the benefits of looking beyond the CBD for quality office space.

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Safe design is defined by Safe Work Australia as ‘integrating hazard and risk assessment methods early in the design process, to eliminate or minimise risks of injury throughout the life of a product’. This applies to buildings and structures, as well as equipment and materials.

The key point is ‘throughout the lifecycle’. Safety must go beyond using compliant and conforming building products and managing Work Health and Safety during construction, to assessing the hazards and risks that are unique to the project and specific to the patrons who will use the building.

For example, the Building Code of Australia (BCA) within the NCC outlines standards required for class 9b buildings, which includes educational facilities. But development of the 17-storey Arthur Phillip High School in Parramatta—one of the first vertical schools in NSW—must also consider the age and natural behaviour of patrons in the design.

Safe design is not only important for public health and safety, but can help you avoid significant costs associated with retrofitting, workers’ compensation, insurance levies, environmental clean-up and negligence claims down the track. It can also improve the performance, usability and cost-effectiveness of the building.

Safety above and beyond the BCA needs to occur during the design phase, when architects are making decisions about the building and its intended purpose. The further along the project has progressed, the less likely it is that can you influence safety outcomes. Architects not only need to comply with BCA standards, but also consider real-life safety implications of their design decisions.

The BCA can only go so far in telling developers what they need to do to make their building safe for patrons. Beyond that, it is up to decision makers on the project to  ensure that the design, construction and products are fit for purpose and meet the health and safety needs of patrons throughout the lifecycle of the building.

Going beyond the BCA will not affect your building certification—as long as you meet the minimum standards you will be certified. However, it will reduce your risk and allow you to deliver a project that meets the unique needs of your patrons. For more information, visit Safe Work Australia or talk to one of our Accredited Building Certifiers.

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Online shopping may be convenient, but it seems people still want the social interaction and experience of a physical store. Of course, that doesn’t mean technology hasn’t influenced the way people shop. Physical stores need to adapt to these changing expectations and provide an experience that people can’t get online.

Designing experience centres

Retailers are blurring the boundaries of the online and in-store experience, going beyond traditional sales tactics to create a point of difference. Rebel Sports created a stadium feel in its Bondi store by adding bench seating, line marking, interactive games and personal trainers, who provide personalised athletic advice to customers.

Fisher & Paykel boasts a team of cooking specialists in its Alexandria store, for product demonstrations and advice on product selection and use. Supercheap Auto has dedicated space in its Penrith store for DIY workshops, a cinema-style area for product education videos, and car clinic advice bars.

In the Sydney CBD, CBRE is creating a Champs-Elysees or Sixth Avenue on George Street, which is expected to be complete by late 2019. Luxury flagship stores and modern concept stores will follow this trend of providing an immersive brand experience for customers entering the store.

Integrating offline and online

New technologies have allowed retailers to target consumers with the right products, in the right location, at the right time. Mobile notifications that are sent as a consumer walks past a store, and emails that remember their size and last purchase are just a few of the tools that will integrate the offline and online retail experience.

However, a recent PwC survey found that 81 per cent of Australians believe as technology improves, they’ll want to interact more with a real person. While retailers should take advantage of automation, they also need to make sure consumers can reach a human when they need to.

Smart retailers understand that embracing new digital technologies will free staff to provide superior customer service and a genuine human connection for customers, combining the efficiency of online shopping and the experience of shopping in a physical store.

A social and entertainment destination

Experts predict that within 10 years, shopping centres will become more like resorts, where people will go to relax and have fun rather than simply do the grocery shopping and leave. According to Westfield’s ‘Destination 2028’ vision, shopping centres will be hyperconnected microcities or town centres.

These malls of the future are expected to feature swimming pools, libraries, residential apartments, office space, education facilities, healthcare facilities, entertainment precincts and adventure activities. Rather than homogenous buildings, we will see unique designs that reflect the location, setting and demographic of the local community.

Of course, these changes will have a significant impact on the way developers achieve the performance-based requirements in the Building Code of Australia (BCA). They will be far more complex than simple retail fitouts and take-away food outlets, and require a creative approach to ensure designs are both creative and compliant.

MBC has worked on a number of retail developments to ensure the design and construction complies with the BCA. Our Accredited Building Certifiers understand the need for a fast turnaround and seamless transition period, so clients can enhance the bricks and mortar experience, without compromising compliance in their development.

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The largest and most ambitious of these projects is Western Sydney Airport, which is set to open in 2026. The new airport, as well as the surrounding Aerotropolis and business park, is expected to be a catalyst for investment and job growth, strengthening Western Sydney as a major economic region in NSW.

Western Sydney Airport

The Australian Government is investing up to $5.3 billion in equity to deliver the airport. It’s expected to generate economic activity, provide employment opportunities closer to home for people in the Western Sydney region, and meet Sydney's growing aviation needs.

British firm Arup Group was awarded the contract to develop the masterplan for the airport, which will stretch across 1870 hectares—almost twice the size of Sydney’s Kingsford Smith. The first stage of development will cater up to 10 million passengers a year, and be progressively developed to accommodate 82 million passengers by 2063.

A new business hub

Western Sydney Airport commissioned Architectus to develop a masterplan for a 191-hectare business park, which will be located 1.5 kilometres from the airport terminal and include office, retail, hotels and conference facilities. Master planning is expected to be completed by mid-2019, and opened prior to the airport’s operational date in 2026.

The business park is a separate project to the 11,200 hectare Aerotropolis and will feature open spaces, outdoor wellness areas, attractive landscaping and great connectivity from the business park to the terminal. It will also have a dedicated stop on the future Western Sydney Airport north-south rail line, to connect professionals with the rest of Sydney.

The Aerotropolis

The Western Sydney Aerotropolis will be an industrial zone of commercial, agricultural, industrial and residential development, designed as part of the Greater Sydney Commission’s 40-year vision for the Greater Sydney Region. It will include nine precincts and make a significant contribution to 200,000 new jobs for Western Sydney.

The Aerotropolis will be the base for aerospace and defence, manufacturing, healthcare, freight and logistics, agribusiness, education and research industries. The $5 billion Sydney Science Park is the first project to begin construction, with property group Celestino creating an internationally-recognised centre for research and development.

The industry impact

Construction of the Stage 1 development for Western Sydney Airport is expected to create over 28,000 jobs by 2031. These will be focused on the construction, engineering and professional services industries, drawing resources away from Sydney and towards Western Sydney.

The proposed north-south rail link will connect workers around Sydney to the airport, creating what is being called a ’30-minute city’. However, industry experts have voiced concerns about the potential shortage of workers in the decades to come. This is likely to lead to an influx of architects, builders and other skilled labour from around the world.

Despite these challenges, there is no doubt that the developments in Western Sydney represent a significant opportunity for people at all levels of the building and construction industry. It is the first of many large-scale projects that will reimagine Sydney and create a flourishing sector of highly trained and experienced professionals.

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MBC has implemented a number of initiatives to support a diverse workforce. We believe that fresh ideas and perspectives are needed to create a better built environment for the people of NSW. This means encouraging more people to take on lesser-known roles such as cost planners, building certifiers, fire safety practitioners and Building Code of Australia (BCA) designers.

We support flexible working arrangements—not only to support the mental health of our team through better work-life balance, but also to encourage more women to get involved in an industry in which they are vastly underrepresented. Our team are also provided with financial support to complete their studies, achieve their certification and further their professional growth.

Our latest initiative is a Construction Management Scholarship for University of Newcastle students who are facing educational disadvantage, such as financial hardship. The scholarship is valued at $10,000 and aims to support students who are passionate about the industry and driven to succeed. To be eligible for the scholarship, students must meet the following criteria:

• Be enrolled in the 2nd or 3rd year of the Bachelor of Construction Management (Building)(Honours) with Faculty of Engineering and Built Environment at University of Newcastle.
• Be enrolled full-time.
• Demonstrate academic achievement by having a Grade Point Average (GPA) of 5.0 or higher.
• Demonstrate impact of educational disadvantage, such as carer, sole parent, financial hardship, English language difficulty, Indigenous Australian, long term medical condition or effects of abuse, disability, refugee status, regional/remote disadvantage.
• Not have previously completed a degree.
• Not be the recipient of another University of Newcastle scholarship at the same time.

Applications for the scholarship close on 9 March 2019, and we are excited to see the new generation of talent that will soon be joining the industry. We are looking to develop a similar program with Sydney University, to support outstanding students who are experiencing disadvantage. We hope these initiatives will encourage more young and diverse people to join the industry, ensuring it continues to thrive well into the future.

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What is a Complying Development Certificate?

A Complying Development Certificate is an alternative to a Development Application and Construction Certificate. It’s ideal for straightforward projects that benefit from a fast-tracked approval process. Only councils and Accredited Certifiers like MBC can issue Complying Development Certificates.

Complying Development Certificates are limited to certain projects, particularly external and internal alterations in commercial, retail and industrial developments. The projects must comply with the Building Code of Australia (BCA) and satisfy all requirements of the State Environmental Planning Policy (Exempt and Complying Development Codes) 2008.

What are the benefits?

Complying Development Certificates can be issued relatively quickly and are more cost effective than a Development Application and Construction Certificate. In most instances, you are not required to notify neighbours of the development, which reduces the risk of any objections to your proposal.

How to fast-track your application

Under the fast-track development pathway, your Complying Development Certificate can be issued in as little as five days. Here’s how to make sure your application is approved without any problems.

Have the right documentation

The documentation you will need for a Complying Development Certificate depends on the type of building and work proposed, but generally you will need to provide architectural plans, engineering details, the annual fire safety statement (if applicable) for the building, and proof of payment of government levies.

If the proposed works are not permitted as Complying Development, you will need to lodge a Development Application with council and secure a Construction Certificate for the proposed works. These involve different requirements and processes, which may delay your construction start date.

Start early

It’s important to get in touch with our Accredited Building Certifiers early in the process, ideally during the design phase. We’ll review the project to see if it’s eligible for a Complying Development Certificate, and work backwards from the planned occupation date to identify certification milestones along the way.

This will give you a better understanding of what information you need at every stage of development, and help you address any small issues before they snowball and become a serious problem. While building certifications are just one of many things you need to consider, they are critical to the success of your project, so it’s worth starting early and thinking ahead.

Respect the process

The most successful projects give due regard to the process. This means considering the requirements and timeframes of third parties, such as Accredited Building Certifiers, Fire and Rescue NSW and local councils. It also involves taking the time to undertake critical inspections to assess compliance.

To make sure your project stays on track, try to avoid unrealistic timeframes, or focus on the ability to start and finish the project without considering the milestones in between. And don’t wait until the end of the project to address recommendations provided at the beginning.

To speak with one of our building certification consultants about a complying development certificate for your project, please get in touch.

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BCA compliance

A BCA report will detail areas of non-compliance with the most recent provisions. This is particularly important for older buildings and those that have been altered and may have suffered ‘compliance creep’. The report will outline where the building sits in relation to the current code, and what works need to take place to achieve BCA compliance.

Expert advice

Our team of Accredited Building Certifiers are highly skilled and experienced in complying with NSW legislation and will work closely with you on a site audit and documentation review, to ensure any advice gives full consideration to the context and use of your building. This process will give you peace of mind that you’re getting the best advice for your property.

Project efficiency

While BCA compliance is just one aspect of the purchase or sale of the building, it can have a significant impact on your assets ability to provide consistent returns.

Cost effectiveness

A BCA report allows you to have all the information you need to make an informed decision, such as negotiating the cost of any upgrades required into the purchase price. You may also be able to leverage the value of the assets in the sale price of the building. Understanding these issues and opportunities now will allow you to leverage your asset throughout its lifecycle.

Safety and liability

Reducing risk is a key consideration for obtaining a BCA report, and it is often requested by councils and the fire brigade when there are questions raised around the safety of the building. Being on the front foot and having a clear understanding of a buildings position relative to compliance with the current legislation allows an owner to forecast upgrade costs and deal with compliance ongoingly lessening the burden.
We encourage all clients to obtain a BCA report at critical times, such as the purchase or sale of the building. For more information and to speak with one of our Accredited Building Certifiers, please get in touch.

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The NCC overhaul, focused primarily on Section J, is part of the government’s strategy to reduce greenhouse gas emissions and increase the energy efficiency of Australia’s building stock by 40 per cent by 2030. The changes are likely to be cost-effective and produce energy savings for organisations of around 23 to 53 per cent.

Building types affected

The Section J changes affect Class 2, Class 3 and Class 5 to 9 commercial buildings, and focus on improving the strictness of provisions. This will be achieved by:

• quantification of the mandatory performance requirement
• introducing a NABERS Energy Commitment Agreement Verification Method
• introducing a Green Star Verification Method
• introducing commissioning requirements
• improved consideration of on-site renewables such as photovoltaics
• improved thermal bridging requirements, and simpler deemed-to-satisfy provisions.

Residential buildings affected are Class 1, sole-occupancy units of Class 2, and Class 4 parts of buildings. The focus for residential buildings is to simplify provisions, improving readability and compliance with existing performance requirements.

Green Star and NABERS verification

Changes to the NCC will also allow organisations to use verification methods used to achieve Green Star and NABERS ratings, to prove BCA compliance. This means organisations can bypass the need for separate verification, if they are already committed to achieving those ratings. This will streamline the process, as ratings requires independent review and verification.

How does this affect you?

These changes will provide greater flexibility and more options for creating a sustainable workplace, helping organisations achieve energy savings in a cost-effective manner. However, this flexibility means a greater focus on performance solutions, some of which will be harder to achieve than others.
The NCC changes will be released in February 2019 and come into effect in May 2019. For more information on the changes and how you can leverage them to create a more sustainable workplace, visit the Australian Building Codes Board, or get in touch with our building certification consultants.

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What are non-conforming building products?

Non-conforming products are those that do not comply with the NCC, other laws and Australian Standards. NSW Fair Trading refers to them as simply ‘bad products’ that claim to be something they’re not (such as non-combustible) and marketed to deceive people into using them.

Non-conforming products either have not been tested in an accredited lab, or did not comply with the parameters of the test. It is important to note that engineers cannot prove non-conformance. Manufacturers must undertake the relevant testing and provide a legitimate certificate to the client.

What are non-compliant building products?

Non-compliant building products are those that are used in situations that do not comply with the NCC. In other words, they are quality products with all the relevant certificates, but have not been used correctly in a development. NSW Fair Trading refers to them as products ‘used badly’.

For example, a product may be deemed suitable for a Type C construction under three storeys, but has been used in a 10-storey building. In this situation, the product in non-compliant with the NCC. Engineers can determine whether products are fit-for-purpose or used correctly in your development.

Who is responsible?

Using non-conforming or non-compliant products can lead to serious risks and liabilities for your development and business. Architects, engineers and other specialists need to make sure that any products, materials or systems used in a development are fit-for-purpose and meet the performance requirements.

Your MBC building certification consultant is also responsible for inspecting the development for any signs of bad products or products used badly. We may require evidence of suitability for a particular product, material or system if there are questions about their compliance with codes, standards and laws.

Since the Grenfell tragedy in London and Lacrosse apartment fire in Melbourne, the government has introduced legislation that aims to reduce the use of materials that do not conform or comply to the NCC, particularly in relation to imported products.

The introduction of non-conforming and non-compliant building products into the Australian supply chain is one of the biggest issues facing the industry, with many experts suggesting that more needs to be done by state governments to tighten the chain of responsibility.

Tips for reducing your risk

Using products, materials or systems that don’t comply with the NCC will not only compromise their performance and void their warranty, but also pose a significant safety risk to the general public. However, there are a number of things you can do to reduce your risk:

• Seek professional advice from your MBC building certification consultant early in the process. We can review the proposed products, materials and systems during the design phase and ensure everything is compliant with all relevant codes, laws and standards.

• Maintain quality assurance processes to ensure product substitution does not occur. If a substitution is necessary, make sure due diligence is undertaken and the change will not affect the quality or compliance of your development.

• Understand the background of each product and its intended use in the development, by working with trusted manufacturers and suppliers who undertake stringent testing in Australia and can provide any evidence of suitability that is required.

• Stay informed about changes to codes, laws and standards that will affect your development. We advise clients on any current or potential reforms to the building industry that may affect their project, to ensure they remain safe and compliant.

While prevention is better than cure, it can be difficult to demonstrate that products are fit-for-purpose and comply with the NCC. If you have any concerns or questions about your development, please get in touch with our building certification consultants.

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“The Advisory Board is the next step in MBC’s growth and will give us the guidance and support we need to expand in the Australian market,” said Heath McNab, MBC Managing Director. “We’re proud to be a Principal Certifying Authority with an external Advisory Board, and will make the most of this opportunity to leverage their considerable expertise and experience.”

The Advisory Board will meet once a month to provide advice to MBC on corporate governance, decision making, expansion plans, service delivery and more. “The industry continues to evolve over time, and we want to make sure the fresh approach we offer clients is applied to every area of our business, as well as our plans for the future,” McNab said.

MBC is also pleased to welcome Joel Lewis to the role of Associate Director. “It’s a great team, with a diverse range of skills and an enjoyable office environment,” Lewis said. “One of the drawcards for me joining the team was that MBC is always looking to develop its processes to improve results for clients.”

Lewis believes MBC offers a younger, fresher approach to building certification. “MBC is continually growing in the industry, which shows it has strong client relationships and provides quality services—something I feel is lacking in the current market,” he said. “The team already have the skills and knowledge, so I’ll be using their existing resources and capabilities to help them build a strong and diverse workbook of projects for the company. I’m excited to be involved with MBC and the business opportunities it offers moving forward.”

Ross Styles, Non-Executive Director

Ross Styles is an experienced architect and former Principal and Director of Architectus, where he worked for more than 30 years. His distinguished career in the field of architectural design includes managing the design and delivery of projects across Australia, China and the Middle East. As a Board member, Ross contributed to the success of Architectus through strategy development and strong governance and culture.

Ross holds a Master of Architecture from the University of Pennsylvania and has completed a Company Directors Course at the Australian Institute of Company Directors. He is highly experienced in the areas of business development, practice management, contract review and negotiation, quality assurance systems and human resources.

David Bruce, Non-Executive Director

David is a seasoned Managing Director and Non-Executive Director, with over 30 years’ experience in the finance, corporate, non-profit and charitable sectors. He was previously the CEO, CFO and Director/Principal of Kann Finch Group for over seven years, leading the corporate restructure and redevelopment of the practice during difficult trading conditions in the Middle East and North Africa region.

David has completed a Company Directors Course at the Australian Institute of Company Directors, Executive Leadership Training at the Brooklyn Institute, and a Master of Business Administration at Southern Cross University. He is a Member of the Australian Institute of Company Directors, Fellow of the Governance Institute of Australia and Fellow of the Institute of Managers and Leaders.

Joel Lewis, Associate Director

Joel has joined the MBC Advisory Board as Associate Director, and has a broad range of experience in the industrial and commercial sectors. Prior to joining MBC, Joel held a Senior Associate role at Metro Building Consultancy, a Senior Building Surveyor role at McKenzie Group Consulting, and a Project Manager role at Prime Constructions.

Joel has a Bachelor of Construction Management (Honours) from University of Technology Sydney and a Graduate Diploma of Building Surveying from Western Sydney University. He is an A1 Accredited Certifier (unrestricted) and brings to MBC a strong understanding of business development, quality assurance and staff development in the building and construction industry.

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The proposed changes will include an amendment to the Environmental Planning and Assessment Act 1979, introducing an alternative appointment process for Principal Certifying Authorities to avoid conflicts of interest.

 It has been suggested that a conflict of interest may arise where the party responsible for the development engages the building certifier. By regulating the appointment process, the Government believes it can reduce these conflicts of interest.

An Options Paper has been developed for public consultation, seeking feedback on whether an alternative process should be introduced and if so, which process would be most effective at maintaining building certifier independence.

The proposed changes would affect Class 2 to 9 buildings of Type A construction that:

• are greater than three storeys in height
• have a total floor area greater than 2000m2
• are valued at more than $5 million.

These buildings would be subject to one of the following three options considered in the paper.

Option 1: The rotation scheme

This option involves the establishment of an eligibility list with certifiers who are selected at random from the list, similar to a lottery system.

Option 2: The cab rank scheme

This option involves the establishment of an eligibility list where the next available certifier would be appointed to work on the development, similar to a cab rank.

Option 3: The time limit scheme

This option involves enforcing a limit on the amount of time a certifier can continually work for the same client, and would require the certifier to take a three-year break from the client after a certain period.

There have been criticisms of the options by Principal Certifying Authorities, including MBC. We believe any changes to the legislation should maintain a balance between independence and competitiveness.

The options focus on reducing the opportunity for a direct and ongoing relationship between the client and building certifier, with the aim of reducing conflicts of interest.

However, clients won’t be able to choose a building certifier based on quality, service, price and expertise. The options may also lead to increased risks and reduced efficiencies, the costs of which will be passed onto consumers.

Importantly, there is a risk that clients will be forced to work with building certifiers who provide sub-optimal service, or have their project reassigned to another certifier midway through the development.

We believe strengthening existing policies and codes of professional conduct will be more effective than the proposed options, which are unlikely to support the growth of an innovative and competitive building certification industry.

Public consultation on the Bill closed on 4 September 2018, and consultation on the Options Paper will close on 30 October 2018. For further information, visit the Building Professionals Board website or get in touch with our team.

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The online portal is not yet live, but you can sign up to be notified when it is available on the NSW Planning and Environment website.

For buildings occupied before 22 October 2018, the deadline for registration is 22 February 2019. Owners of new buildings will have four months to register the building from the time of occupation.

Building types

The Regulation applies to the following building types (both new and existing buildings) of two or more storeys:

• residential apartment buildings
• other types of residential buildings where unrelated people sleep (e.g. hotels, boarding houses, backpackers, student accommodation)
• aged-care buildings, hospitals and day surgeries (and any associated single dwellings within the building)
• public assembly buildings (e.g. theatres, cinemas, schools and churches) and any associated single dwellings within the building.

Cladding types

The Regulation applies if any of the above buildings have external combustible cladding made of the following materials:

• metal composite panels, including products that consist of aluminium, zinc, or copper outer layers and a core material
• insulated cladding systems including systems comprised of polystyrene, polyurethane, and polyisocyanurate.

Reporting requirements

Building owners required to register their buildings with the NSW Government will need to report:

• the name and address of the building owner
• the address of the building
• the classification of the building under the Building Code of Australia
• the number of storeys in the building, above and below ground
• a description of any external combustible cladding applied to the building, including the materials comprising the cladding
• a description of the extent of application of external combustible cladding to the building and the parts of the building to which it is applied.

Penalties apply to building owners who do not register buildings with external combustible cladding, as well as those who have been directed to register their building and do not.

The laws enforcing these changes are the Environmental Planning and Assessment Amendment (Identification of Buildings with Combustible Cladding) Regulation 2018 and the State Environmental Planning Policy Amendment (Exempt Development – Cladding and Decorative Work) 2018.

There are also new provisions in the legislation that require alternative solutions (under the Building Code of Australia) involving external combustible cladding to be referred to Fire and Rescue NSW for review.

Eight State Environmental Planning Policies on new cladding, re-cladding and decorative work on buildings have also been updated.

These regulations follow the ban on certain aluminium composite panels under the Building Products (Safety) Act 2017 in August this year, which are part of the fire safety reforms passed by NSW Government in 2017.

If you are concerned that your building may be affected by the new regulation or the ban on aluminium composite cladding, contact an Accredited Building Certifier at MBC for advice on next steps.

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In the meantime, it’s up to accredited certifiers like Modern Building Certifiers (MBC) to ensure the person fulfilling the role of fire safety practitioner is competent in relation to the development they are certifying. We take this responsibility very seriously and undertake due diligence to ensure all aspects of fire safety are completed to the highest standards.

The specialist functions performed by the competent fire safety practitioner in the new reforms include:

• endorsement of fire safety alternative solution reports
• endorsement of plans and specifications for certain fire safety systems
• endorsement of limited exemptions from compliance with the Building Code of Australia for minor fire safety system works.

To determine a fire safety practitioner’s competence, our accredited certifiers must first identify the function to be performed. We then consider whether the person has sufficient knowledge, skill and experience to perform these tasks. All competent fire safety practitioners need to provide adequate documentation or evidence to prove they have the following:

• sufficient technical knowledge related to the specific function
• knowledge of relevant codes and standards
• knowledge of relevant laws and statutory responsibilities
• skills to perform the specific function
• experience directly relevant to the specific function
• professional indemnity insurance.

The Australian Fire Association recommends that fire safety practitioners have a minimum of four years verified experience in the specific functions they are looking to perform in the development. In addition, they need to demonstrate knowledge and skills, such as tertiary qualifications, accreditation or registration with a relevant industry body.

If the practitioner doesn’t have any qualifications, they may be able to demonstrate competence by other means, such as a relevant license or professional membership bound by a code of conduct. This would need to be supported by more extensive experience than would otherwise be required if they held formal qualifications.

To endorse a fire safety alternative solution report, the Australian Fire Association recommends a degree or graduate diploma in fire safety engineering.

To endorse plans and specifications for relevant fire safety systems, and/or endorse non-compliance with Building Code of Australia and Australian Standards for minor works to existing fire safety systems, a degree in building services or a diploma in fire systems design or hydraulic services design is required. To endorse mechanical ducted smoke control systems, a degree in building services or mechanical engineering is required.

Once competency is determined, our accredited certifiers must then record their decision in writing to confirm whether the person is a competent fire safety practitioner for the function that will be performed.

For more information on how we assess the competency of your fire safety practitioner, get in touch with our accredited certifiers today.

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The NSW Government has recently published the Environmental Planning Assessment Amendment (Fire Safety and Building Certification) Regulation 2017, which will come into effect on 1 October 2017. The new reforms aim to improve fire safety in new and existing buildings, following the recommendations outlined in the statutory review of the Building Professionals Act 2005, released in September 2016.

The changes are relevant to class 1b-9 buildings at various stages of development and place a particular focus on the involvement of ‘competent fire safety practitioners’ who will perform functions such as carrying out annual fire safety checks. The Department of Finance, Services and Innovation will be developing a new accreditation framework for the fire safety practitioner role later in the year.

Below are the key areas of the new regulation that are relevant to MBC clients.

Design and Approval

The regulation requires plans and specifications to be submitted before installing, modifying or extending certain fire safety systems in class 2-9 buildings. These include:

• mandatory submission of endorsed plans and specifications for certain fire safety systems to MBC, before systems can be installed
• new requirements for documenting, endorsing and checking non-standard fire safety designs (known as performance solutions or alternative solutions in the Building Code of Australia)
• limited exceptions from compliance with technical standards, for minor safety system work
• mandatory involvement of competent fire safety practitioners in certain situations.

Construction

There will be new critical stage inspections for apartments and other multi-dwelling residential buildings. At a minimum, these required inspections will cover penetration protection of each type of service (hydraulic, mechanical, electronic etc) and fire compartmentation on each storey of the building to varying degrees. Like all critical stage inspections, these must take place to ensure occupation certificates for multi-dwelling residential buildings can be issued.             

Fire and Rescue NSW will be given the opportunity to inspect any class 2 or 3 building that has undergone building work involving the installation, extension or modification of relevant fire safety systems. This is regardless of whether the building or work is subject to an alternative solution or performance-based solution.

A new, more detailed format of reports for alternative solutions used in class 1b-9 buildings will be required, with fire safety statements and certificates provided in the form that has been approved by the Department of Planning and Environment. This aims to improve the quality and consistency of these statements and certificates. 

Maintenance

Assessment of the ongoing performance of essential fire safety measures must now be undertaken by competent fire safety practitioners. Once the accreditation framework is in place, these practitioners will be expected to be accredited to perform this role.

These changes are likely to affect most development work on new and existing buildings taking place after October 2017. MBC will be providing detailed advice in relation to these issues as they come to hand. If you would like clarification on any aspect or want to learn more about the reforms, read the Environmental Planning and Assessment Amendment (Fire Safety and Building Certification) Regulation 2017, or get in touch with our team to discuss.

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Rick Fedrizzi of the International WELL Building Institute believes it’s possible. He calls this era the second wave of sustainability, which follows the first wave that began in the early 90s. This was when green buildings were starting to take off and the focus was around energy efficiency, water usage and waste. The Green Star performance tool is a result of this first wave of sustainability. Launched by the Green Building Council of Australia in 2003, Green Star assesses the operational performance of buildings against nine environmental impact categories: management, indoor environment quality, energy, transport, water, materials, land use and ecology, emissions and innovation.

Since then, the way we work and the technology we use has dramatically changed. There are now opportunities to not only reduce our environmental impact, but also enhance people’s health and wellbeing. This is the focus of the WELL Building Standard™, which rates a building against seven concepts: air quality, water quality, nourishment, light, fitness, comfort and mindfulness. A new guidance document that aligns Green Star and the WELL Building Standard™ was launched in January this year, with the aim of supporting building owners who are looking to boost the sustainability of their assets and support the health and wellbeing of their buildings’ occupants.

This partnership means developers no longer have to choose between health and sustainability when creating modern building designs in Australia. There has already been significant interest in the concept, with Lend Lease adopting the WELL certification for its International Towers Sydney precinct at Barangaroo, and CBRE pursuing the certification for at least 100 buildings, sites and offices around the world. One of the first Australian buildings to be certified was the heritage-listed building in Sydney’s Martin Place, owned by Macquarie Bank. It is also pursuing certification for its building at 1 Shelley Street Sydney, with other companies expected to follow in the years ahead.

While sustainability requirements in the Building Code of Australia (BCA) have not been significantly revised in almost a decade, there will likely be reforms to energy efficiency standards for commercial buildings when the code is reviewed in 2019. However, from 1 July there will be changes to the threshold at which a Building Energy Efficiency Certificate is required for an office space, from 2,000 square metres or more down to 1,000 square metres or more. As more companies understand the benefits of creating modern building designs that address the health and wellbeing of their workers, it’s likely that changes to the BCA and relevant legislation will follow.

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