Building Act Post Moratorium Reforms Occupancy Certification System Department of Lands, Planning and the Environment May 2016

Presentation Objectives

Presentation Objectives Explain the three pathways for Occupancy Certification. Explain the assessment process for Occupancy Certification. Advise of additional obligations on building certifiers and agents. Work through scenarios to describe the differences between the three levels. Explain the impact of the reforms on the current system.

Background

Background Government declared a Moratorium on building certification enforcement in April Impasses preventing owners from achieving certification. Circulation of discussion paper.

Background (Contd) Outcomes from the discussion paper were: Stage 1 - Three level certification system to resolve impasses. Stage 2 - Increase capacity in the building certification industry. Stage 3 - Build a culture of compliance.

Three Pathways to Occupancy Certification

Overview

Overview The three levels of Occupancy Certification are: Occupancy Permit (highest) Certificate of Substantial Compliance Certificate of Existence (only for work completed prior to 1 May 2016)

Overview Increased transparency Deliberate strategy to use market forces Brings unapproved works into the system

Occupancy Permit

Occupancy Permit Existing Occupancy Permit. All works and legislative processes have been complied with. Occupancy Permits can be granted against an expired BP, if all works were carried out within the BP period.

Certificate of Substantial Compliance

Certificate of Substantial Compliance New category of Occupancy Certification. Granted by building certifiers. Must meet technical standards. Can be granted for all building classes. Certificate of Substantial Compliance can be granted against an expired BP, if all works were carried out within the BP period. Accommodates: building works not carried out strictly in accord with building approval and or legislative requirements.

Certificate of Substantial Compliance Example – missing wet area inspection Owner failed to call for inspection and wet area was not inspected by the certifier.

Certificate of Substantial Compliance Outcome 1 Testing or other evidence can demonstrate compliance. Building certifier issues inspection certificate. Occupancy Permit can be granted.

Certificate of Substantial Compliance Outcome 2 Building certifier satisfied technical standards have been met. Building certifier will not issue the inspection certificate as not all of the membrane was inspected. Certificate of Substantial Compliance can be granted.

Certificate of Substantial Compliance Outcome 3 Certifier not satisfied the technical standards have been met and work was completed after 1 May Rectification to meet technical standards - Building Notice and Order issued by building certifier (if necessary). Occupancy Permit can be granted.

Certificate of Substantial Compliance Outcome 4 Certifier not satisfied the technical standards have been met and work was completed prior to 1 May Certificate of Existence can be granted by Director of Building Control.

Certificate of Existence

Certificate of Existence New category of occupancy certification. Building approval was required. Work completed before 1 May Work carried out outside validity period of approval. Work not substantially compliant. Work does not meet technical standards at time of construction.

Certificate of Existence (Contd) Recommendation by building certifier. Granted by the Director of Building Control. Can cover all classes of buildings but not “Importance Levels 3 and 4”.

Certificate of Existence (Contd) Work must meet a reasonable level of safety, health and amenity. Different elements of building work may have different technical standards. Must meet current technical standards for wind loading and fire safety standards. Must comply with all other relevant legislation e.g. planning. Work that does not meet a reasonable level of safety, health and amenity to be notified to Director of Building Control.

Certificate of Existence (Contd) Example – Commercial building (unapproved work) Two storey commercial building with shops on the ground floor and offices on the second storey constructed with planning approval but without building approval in 1990.

Certificate of Existence (Contd) Current wind loading and fire safety standards. Other elements of building work considered. Reasonable level of safety, health and amenity established.

Mixed use buildings and Building Permits with multiple buildings

Mixed use buildings and Building Permits with multiple buildings Multiple buildings and building classes on a Building Permit. Buildings can be covered by different levels of Occupancy Certification. Where a non-compliant element of one class affects another class (there is a dependency), separate Occupancy Certification should not be granted.

Mixed use buildings and Building Permits with multiple buildings Example – house and shed (no dependency) A house and shed are on the same Building Permit. There is an issue with the shed preventing the issue of an Occupancy Permit.

Mixed use buildings and Building Permits with multiple buildings Example – mixed classes with dependency A five storey residential complex was constructed. The building contains a carpark and storage area (mix of class 2, 7 and 10 buildings). The pedestrian exits in the carpark were not compliant with the NCC.

Granting Occupancy Certification against Expired Building Permits

Granting Occupancy Certification against expired Building Permits All work essential to the class must be completed during validity period. Work that is not essential to the class can be severed from the Building Permit. Inspection of building work. Work must be suitable for occupancy at the time of the application.

Granting Occupancy Certification against expired Building Permits Example - granting Occupancy Certification against expired Building Permit A Building Permit was granted in 1999 for a house. The house is a ‘pod style’ house and the Building Permit specified there would be five pods. Three of the pods were for bedrooms, one for a living area/laundry and one for a carport. All but one of the bedrooms and the carport were constructed during the validity period of the Building Permit.

Granting Occupancy Certification against expired Building Permits All work essential to the class of building has been completed. Remaining pod and carport can be severed from the Building Permit. Occupancy Permit specifies the work that it covers and work severed.

Granting Occupancy Certification against expired Building Permits Suitable for occupation: Class of building and use Nature of the building work (e.g. is it part of a building) Location (for example, is it in a high wind area) Age of the building work State of repair (condition)

Granting Occupancy Certification against expired Building Permits Suitable for occupation: Status reports: –Plumbing and drainage –Termite –Electrical Inspection by certifier

Changes to building legislation over time

Changes to building legislation over time Building certifiers now issue Occupancy Permits and Certificates of Substantial Compliance for work completed before 1 September Work of any age may be assessed for a Certificate of Existence. Work prior to the Building Act 1983 may only be covered by a Certificate of Existence.

HBCF and Residential Building Cover Implications

HBCF and Residential Building Cover Implications Home Building Certification Fund HBCF cover can apply to building works granted with a Certificate of Substantial Compliance or Occupancy Permit. Building works finalised by a Certificate of Existence cannot activate HBCF. 10 year HBCF cover starts from the date the works were physically completed, but no later than the original two year building permit period.

HBCF and Residential Building Cover Implications Residential Building Cover An Occupancy Permit and a Certificate of Substantial Compliance activate Residential Building Cover. Certificate of Existence does not activate Residential Building Cover. Residential Building Cover defect period commences no later than two years from issue of original building permit period.

Implications for Tier 2

Tier 2 Building Control Areas Buildings in Tier 2 Declared Building Control Areas will also be subject to the new three level occupancy certification system. Since 2006, certification for houses (and some class 10 buildings) are finalised on the issue of a Builder’s Declaration only. All other buildings have always and will continue to require full Occupancy Certification.

Tier 2 Building Control Areas (Cont.) Occupancy Certification for houses and associated class 10 buildings will continue to be able to be finalised on issue of a Builder’s Declaration. If a builder’s declaration is not available - post construction assessments for a Certificate of Substantial Compliance or a Certificate of Existence. If the work is unapproved and completed after 3 July 2006 but before 1 May - post construction assessments for a Certificate of Existence. If the work is unapproved and completed after 1 May 2016 – new Building Permit.

New obligations on certifiers and owners’ agents

New obligations on certifiers and owners’ agents Building certifiers must advise owners –why the work cannot be granted an Occupancy Permit. –HBCF/Residential Building Cover not activated with a Certificate of Existence. –about appeal rights. Owners’ agents must advise owners –about why the work cannot be granted an Occupancy Permit.

Implementation

Implementation Education campaign. Integrated Land Information System (ILIS) and Building Approvals Online (BAO). Updated compliance and enforcement policy.

Admin Interests SINGLE BP – MULTIPLE CLASSES, MULTIPLE OCCUPANCY CERTIFICATIONS 2x Building classes 2x Occupancy Certifications 1x Building Permit

Standard Report SINGLE BP – MULTIPLE CLASSES, MULTIPLE OCCUPANCY CERTIFICATIONS