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Reading the news that the Opal Towers lawsuit has been settled, I cannot help but ponder how much mud has been flung on this issue over the last 3 years, some of it misdirected, but which has stuck, nonetheless.
Let’s face it, if you were asked to come up with a list of ‘reputationally challenged’ professions, there’s a fair chance that ‘Building Certifiers’ would now appear somewhere on that list.
And that’s because most casual observers now lay the blame for the catastrophic building defects – of which Opal Towers is now an infamous flagbearer - on Building Certifiers, who they assume are responsible for ‘signing off’ such shoddy work.
But the ease and conviction with which people have apportioned blame belies a deep and fundamental misunderstanding around the roles and responsibilities of professional Building Certifiers.
It takes about 680 hours to build the average house, and that house is subject to about 150 Australian standards. During the building process the Certifier must perform 6 mandatory inspections. Assuming each inspection takes 1 hour, the Certifier spends less than 1% of the time it takes to build a house actually on site. On that basis how reasonable is it that the Certifier is attributed with overall responsibility for a house being free of defects and fit for purpose?
Contrary to popular belief, Building Certifiers, whether they be council or privately registered, are NOT responsible for supervising building work, writing design specifications, or carrying out quality control on the building. It is NOT their role to give approvals in areas like structural integrity or electrical safety.
Rather, the role of the Certifier is to issue one or more of the various certificates that builders need to satisfy relevant state laws. There are numerous certificates that a builder can need, depending on the nature of the project, ranging from those required for building occupation, land subdivision, and strata developments, to more specialised construction projects such as swimming pools.
In the course of issuing these certificates, Certifiers (also referred to as Building Surveyors or Registered Certifiers by NSW Fair Trading) will inspect building work at specific stages to determine consistency with approved plans, and compliance with legislative requirements and conditions of consent. They will take action to address non-compliant work and, if needed, report it to the appropriate authority, such as the local council.
Whilst urban myth has it that builders appoint their own Certifiers, and that Certifiers will turn a blind eye – lest they don’t get paid - the truth is quite different. Builders cannot appoint or mandate a Certifier, and a Certifier must be paid up front (a convention which would undoubtedly appeal to members of other professions!). And nor can Certifiers approve their own work – rather, they are obliged to rely on (in good faith) the various licensed tradespeople and professionals who are responsible for ensuring their work meets the required standards.
In other words, if you are looking for a villain in the Opal Towers saga, it isn’t the Building Certifiers. Whilst the precise terms of the settlement are confidential, we understand it was two of the engineers involved that contributed to the settlement.
For any given building project, even the smallest home renovation, the legal requirements are complex, and complying with these laws often requires an army of highly specialised experts. For Building Certifiers, this translates into some complex risk management issues.
Obtaining Professional Indemnity cover - as mandated by state authorities – has become more challenging as some providers pare back their exposure or leave some markets altogether. In NSW, Certifiers retain liability for their last 10 years’ work, bringing ‘run off’ cover into the mix (this is becoming similarly hard to secure).
At Headsure, we have extensive experience and expertise in specialised financial lines insurances, including Professional Indemnity. Our deep understanding of the unique risks faced by Building Certifiers, combined with our ‘white glove’ service offering, has helped us grow an impressive portfolio of Building Certifier clients.
To find out more about how Headsure can help you, give us a call or drop us a line.