1. DEPARTMENT OF PLANNING AND INFRASTRUCTURE OBLIGATIONS OF A BUILDING CONTRACTOR UNDER THE NORTHERN TERRITORY BUILDING ACT MARCH 2009

2. DEPARTMENT OF PLANNING AND INFRASTRUCTURE PURPOSE To provide registered Building Contractors with information about their obligations under the Building Act. This is not a substitute for a building contractor informing themself of the specific obligations through reading the Act and developing appropriate procedures.

3. DEPARTMENT OF PLANNING AND INFRASTRUCTURE CONTENTS Background Before Commencing Works Prescribed works Registration requirements Documentation (Contracts, Insurance & Building Permit) Construction of Works Supervision Inspections Geographic application Completion of Works Completion of works Permit to occupy Regulators Building Practitioners Board Director building control

4. DEPARTMENT OF PLANNING AND INFRASTRUCTURE BACKGROUND Governments response to community concerns The requirements commenced on 3 July 2006 Measures protect consumers and builders

5. DEPARTMENT OF PLANNING AND INFRASTRUCTURE BEFORE COMMENCING WORKS 1.Prescribed works 2.Registration requirements 3.Documentation Contract requirements Insurance Building permit

6. DEPARTMENT OF PLANNING AND INFRASTRUCTURE BEFORE COMMENCING WORKS – Prescribed works Only a Registered Building Contractor can do prescribed building works New houses and new units in residential buildings to any height; Verandahs, garages and carports built as part of a new single dwelling and residential units; Extensions such as living areas and bedrooms and to existing single houses and residential units over $12,000; Retaining walls associated with the actual structure of a single house or residential unit.

7. DEPARTMENT OF PLANNING AND INFRASTRUCTURE BEFORE COMMENCING WORKS – Prescribed works NEW DWELLINGADDITIONS FENCE SHED NEW DWELLING NEW CARPORT NEW V E R A N D A H FENCE SHED EXISTING DWELLING New GARAGE VERANDAHVERANDAH S T U D BED Y Ensuite

8. DEPARTMENT OF PLANNING AND INFRASTRUCTURE BEFORE COMMENCING WORKS - Registration Only registered building contractors can do prescribed building works. Building Contractor Residential (Restricted) Single dwellings, townhouses, duplexes and residential units NOT more than two storeys. Building Contractor Residential (Unrestricted) Single dwellings, townhouses, duplexes and residential units with no height restriction. Your registration certificate shows your category

9. DEPARTMENT OF PLANNING AND INFRASTRUCTURE BEFORE COMMENCING WORKS - Registration A person or a company can be a registered building contractor residential. The registered person must supervise all works and sign the relevant paperwork. Advertisements must include the registered person’s name. Registration certificates displayed in a conspicuous place in the principal place of business.

10. DEPARTMENT OF PLANNING AND INFRASTRUCTURE BEFORE COMMENCING WORK - Contracts A written contract is required to build prescribed building works: A house; Verandahs, garages and carports built as part of new house; Extensions such as livings areas, bedrooms and garages to an existing house; or Retaining walls associated with the actual structure of a house; AND Where the cost is above $12,000.

11. DEPARTMENT OF PLANNING AND INFRASTRUCTURE BEFORE COMMENCING WORK - Contracts There must be a written contract which: Is limited to a single building project Identifies the building contractor & number Specifies the works and value Identifies work stages & progress payments Identifies the amount of each progress payment Stipulates a dispute resolution process Limits any deposit to 5% of contracted price Evidence must be provided in the Approved Form

12. DEPARTMENT OF PLANNING AND INFRASTRUCTURE BEFORE COMMENCING WORK - Contracts

13. DEPARTMENT OF PLANNING AND INFRASTRUCTURE BEFORE COMMENCING WORK - Insurance The current policy is HBCF provided by TIO An offence to undertake prescribed building work without HBCF policy for the project The TIO certificate to be presented to the building certifier

14. DEPARTMENT OF PLANNING AND INFRASTRUCTURE BEFORE COMMENCING WORK - Insurance Home Warranty Insurance (HWI) Anticipated in 2010 Subject to competitive products being available Covers non-completion and non-compliance for a period of 6 years Consultation to follow

15. DEPARTMENT OF PLANNING AND INFRASTRUCTURE BEFORE COMMENCING WORK – Building Permit Required for building works in all declared Building Control Areas. An offence to build: Without a valid building permit; or Not in accordance with the building permit. Certifier cannot issue a building permit unless there is evidence of: A contract in the approved form; An approved policy of insurance; and Your registration.

16. DEPARTMENT OF PLANNING AND INFRASTRUCTURE BEFORE COMMENCING WORKS - Summary Before you commence work ensure you: Are registered to perform the works; Have entered into a written contract with the owner of the property where the work will be undertaken if constructing a detached house; Have obtained the required insurance for the works (HBCF) at this stage; and Have a valid Building Permit.

17. DEPARTMENT OF PLANNING AND INFRASTRUCTURE CONSTRUCTION OF WORKS 1.Supervision 2.Inspections 3.Geographic application of the Building Act provisions

18. DEPARTMENT OF PLANNING AND INFRASTRUCTURE CONSTRUCTION OF WORKS - Supervision Only a registered building contractor or someone who is being supervised by a registered building contractor can undertake prescribed works. Supervised = personal oversight having regard to the persons skills and experience. All works must be completed according to the building permit and as contracted.

19. DEPARTMENT OF PLANNING AND INFRASTRUCTURE Mandatory inspection stages for prescribed residential works There are 6 mandatory inspections stages Inspection stages are required to be specified in the building permit CONSTRUCTION OF WORKS - Inspections

20. DEPARTMENT OF PLANNING AND INFRASTRUCTURE CONSTRUCTION OF WORKS - Inspections For prescribed works the following are mandatory: 1.Pre pour stageBefore pouring of footings, floor slabs or other in situ concrete building element 2.Frame stageBefore covering the frame work for floors walls, roof or other building element 3.Block wall stageBefore pouring any reinforced masonry or block walls 4.Fire separation Before covering walls, floors or ceilings, for the purpose of checking fire resistance levels 5.Wet area stageBefore covering waterproofing in wet areas 6.Final stageAfter completion of the building work but prior to the issue of an occupancy permit

21. DEPARTMENT OF PLANNING AND INFRASTRUCTURE CONSTRUCTION OF WORKS - Inspections The Building Contractor must: Notify the Building Certifier when each stage of the building work is completed and ready for inspection. Not continue with further work until the Building Certifier has approved the works to continue. Rectify any matters found to be non-compliant. Upon completion contact the Building Certifier and request a final inspection.

22. DEPARTMENT OF PLANNING AND INFRASTRUCTURE CONSTRUCTION OF WORKS - Inspections The Building Contractor should: Develop a process with the Building Certifier to arrange for inspections. Keep a record of the requests for inspections. Obtain a copy of the inspection certificate from the Building Certifier. Keep a copy for your records.

23. DEPARTMENT OF PLANNING AND INFRASTRUCTURE GEOGRAPHIC APPLICATION OF THE BUILDING ACT From 3 July 2006 the application of provisions of the Building Act has changed. Government approved a two-tier system of certification. Recognises the difficulties related to delivering full certification in areas distant from Darwin and Alice Springs where building certifiers are based.

24. DEPARTMENT OF PLANNING AND INFRASTRUCTURE GEOGRAPHIC APPLICATION OF THE BUILDING ACT TIER 1 Applies to: Darwin (Greater Area) Lake Bennett Alice Springs (Greater Area) Requires: Full certification Mandatory staged inspections Permit to Occupy

25. DEPARTMENT OF PLANNING AND INFRASTRUCTURE GEOGRAPHIC APPLICATION OF THE BUILDING ACT TIER 2 Applies to all other declared building areas. No requirement for mandatory inspections & occupancy permits for houses. Requires a builders declaration. Property owner can choose to pay for mandatory inspections and a permit to occupy under a contractual arrangement. Full certification, mandatory inspections and a permit to occupy are required for attached dwellings, flats and units.

26. DEPARTMENT OF PLANNING AND INFRASTRUCTURE CONSTRUCTION OF WORKS - Summary During construction of works you should: Build in accordance with the building permit Ensure adequate supervision Ensure the inspection process is followed where required

27. DEPARTMENT OF PLANNING AND INFRASTRUCTURE COMPLETION OF WORKS Builders Declaration Required in all areas (Tier 1 and 2) Permit to Occupy Required in all Tier 1 areas Not required for houses in Tier 2 areas unless contracted Required for all other works in Tier 2

28. DEPARTMENT OF PLANNING AND INFRASTRUCTURE COMPLETION OF WORKS - Builders Declaration Builders Declaration is: A statement that all works were completed in accordance with the building permit; Required to be issued within 14 days; In the approved form; Form must be fully completed and signed by the Building Contractor, or if a Company by the Director/Nominee.

29. DEPARTMENT OF PLANNING AND INFRASTRUCTURE COMPLETION OF WORKS - Builders Declaration

30. DEPARTMENT OF PLANNING AND INFRASTRUCTURE COMPLETION OF WORKS - Builders Declaration It is an offence to: Not provide the Declaration to the Building Certifier within 14 days Withhold the issue of the declaration on the basis of non-payment Make a false Declaration

31. DEPARTMENT OF PLANNING AND INFRASTRUCTURE COMPLETION OF WORKS - Permit to Occupy The Permit to Occupy is the final part in the building process and is issued by a Building Certifier. A Building Certifier requires: Application to issue a Permit to Occupy; The Builders Declaration; and Any other documents / certificates nominated. If acting as the Owners-Agent, it is the Building Contractors responsibility to provide these documents.

32. DEPARTMENT OF PLANNING AND INFRASTRUCTURE COMPLETION OF WORKS - Summary At the completion of works you should: Sign the builders declaration Provide the Certifier with: Builders declaration within 14 days Any other documentation as required

33. DEPARTMENT OF PLANNING AND INFRASTRUCTURE WORK COMPETENTLY & PROFESSIONALY At all times act within the level of competency required and in a professional manner. Competent: Having the necessary skills and knowledge to do something successfully Professional Manner: What is reasonably expected.

34. DEPARTMENT OF PLANNING AND INFRASTRUCTURE THINGS TO CONSIDER What processes / procedures do you have that demonstrate compliance with your obligations? Do you use the approved / prescribed forms? Do your contracts meet the requirements of the Act? Your process for inspections where required? How do you supervise the construction of works?

35. DEPARTMENT OF PLANNING AND INFRASTRUCTURE END OF SESSION 20 MIN BREAK

36. DEPARTMENT OF PLANNING AND INFRASTRUCTURE REGULATORS Building Practitioners Board Director Building Control

37. DEPARTMENT OF PLANNING AND INFRASTRUCTURE BUILDING PRACTITIONERS BOARD Statutory body made up of industry & legal representatives Function is to: Register practitioners Establish policies/codes/requirements & standards for industry Monitor compliance Discipline practitioners

38. DEPARTMENT OF PLANNING AND INFRASTRUCTURE YOUR OBLIGATIONS TO THE BOARD Keep your registration current Renew your registration on time Work within your registration category Notify Board of change in contact, address details or circumstances Keep records of what works you have performed Keep records of any training / seminars / courses that you may have attended

39. DEPARTMENT OF PLANNING AND INFRASTRUCTURE DIRECTOR OF BUILDING CONTROL Investigates complaints against practitioners Audits work and/or conduct Takes disciplinary proceedings to the Board Prosecutes breaches of the Building Act & Regulations.

40. DEPARTMENT OF PLANNING AND INFRASTRUCTURE COMPLAINTS Grounds for complaint against a practitioner: Has committed an offence against the Building Act or the Building Regulations; and/or Has carried out work in a negligent or incompetent manner; and/or Is otherwise guilty of professional misconduct. Must be in writing and contain sufficient particulars.

41. DEPARTMENT OF PLANNING AND INFRASTRUCTURE COMPLAINTS If complaint is investigated: You will be provided with a copy of complaint; and Requested to provide a written response. Based on the response the complaint is either: Dismissed; or Proceed to formal investigation. If you don’t respond the matter will proceed to a formal investigation.

42. DEPARTMENT OF PLANNING AND INFRASTRUCTURE COMPLAINTS During a formal investigation you are obliged to: Answer questions; Provide information; and/or Produce documents. There are penalties for failing to comply and for providing false or misleading information: Disciplinary action by the Board; and/or Prosecution before the Courts.

43. DEPARTMENT OF PLANNING AND INFRASTRUCTURE COMPLAINTS At completion of the investigation the Director is obliged to determine what further action if any is to be taken: Dismiss the complaint; or Refer the matter for inquiry by the Building Practitioners Board; and/or Refer the matter to the Courts. Whatever the outcome the Director will notify you and the complainant in writing.

44. DEPARTMENT OF PLANNING AND INFRASTRUCTURE AUDITS An audit is a process of information gathering to: Ascertain compliance; Appraise and improve operational methods and performance; and Develop and implement educational programmes. An audit can be about work, conduct or both. May be conducted as a result of: A complaint; Industry wide program; or As directed by Practitioners Board.

45. DEPARTMENT OF PLANNING AND INFRASTRUCTURE AUDITS You are obliged to comply with all reasonable requests of an Auditor including: Answer questions; Produce information; and Provide documents. There are penalties for failing to comply and for providing false or misleading information: Disciplinary action by the Board; and/or Prosecution before the Courts.

46. DEPARTMENT OF PLANNING AND INFRASTRUCTURE AUDITS On completion of an Audit you will be notified in writing what action the Director proposes to take: No action; Remedial plan; Prosecution for breaches of the Act; Referral to the Board for disciplinary proceedings. Following the completion of the industry wide audit: Results will be evaluated; Areas for further education and awareness identified.

47. DEPARTMENT OF PLANNING AND INFRASTRUCTURE UPCOMING AUDIT Audits commence late March; Random selection of practitioners; If selected you will be notified in writing at least 21 days prior; Will comprise of: –assessment of administrative processes; –examination of documentation associated with building works; and –use of prescribed forms.

48. DEPARTMENT OF PLANNING AND INFRASTRUCTURE SUMMARY You have obligations to: Clients Building Act Building Practitioners Board Director of Building Control

49. DEPARTMENT OF PLANNING AND INFRASTRUCTURE QUESTIONS

50. DEPARTMENT OF PLANNING AND INFRASTRUCTURE For further information contact Building Advisory Services, Department of Planning and Infrastructure Monday to Friday 8.00am - 4.00pm. Telephone: 08-899 98985 Fax: 08-899 98967 Ground Floor, Cavenagh House 38 Cavenagh St DARWIN CITY http://www.dpi.nt.gov.au/lands/building CONTACT INFORMATION