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QueenslandBuilding and Construction

Commission

Annual Report

2016-2017

ISSN 2203-9589 (Print)ISSN 2203-9597 (Online)

Licence This annual report is licensed by the Queensland Building and Construction Commission under a Creative Commons Attribution (CC BY) 4.0 International licence.

CC BY Licence Summary Statement In essence, you are free to copy, communicate and adapt this annual report, as long as you attribute the work to the Queensland Building and Construction Commission.

To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/

Attribution Content from this annual report should be attributed as: Queensland Building and Construction Commission Annual Report 2016-2017

About this reportThis report summarises the activities and performance of the Queensland Building and Construction Commission (QBCC) for 2016-2017 against key business objectives and targets as set by the Queensland Building and Construction Board (Board), the Government’s objectives for the community and the QBCC 2016-2020 Strategic Plan. This report looks at the year past and the year ahead.

The report reflects the QBCC’s commitment to effective corporate governance through openness and accountability, and provides an account of our revenue and our expenditure.

This is the QBCC’s fourth annual report since its commencement on 1 December 2013. The previous annual reports are available on our website at www.qbcc.qld.gov.au

Readership This report aims to communicate comprehensive information to satisfy the needs of individuals and groups who are affected by, or have an interest in, our activities, including, but not limited to:

the building and construction industry the community our employees our Board and committee members elected members of Parliament Government departments the media.

We are committed to open and accountable governance and welcome your feedback on our reporting.

Interpreter service statementThe QBCC is committed to providing accessible services to Queenslanders from all culturally and linguistically diverse backgrounds. If you experience difficulty in understanding the annual report, you can contact us on 139 333 and we will arrange an interpreter to effectively communicate the report to you.

EnquiriesReaders are encouraged to download the report online at www.qbcc.qld.gov.au/about-us/our-performance. Where this is not possible, printed copies are available using one of the contact options below.

299 Montague Road West End Qld 4101 or locate a regional service centre www.qbcc.qld.gov.au/locate-office. Addresses are also available on pages 22 and 23 of this report.

Our service centres are open Monday to Friday from 8am until 5pm.

T: 139 333 E: [email protected]

mailto:[email protected]

http://www.qbcc.qld.gov.au/locate-office

http://www.qbcc.qld.gov.au/about-us/our-performance

http://www.qbcc.qld.gov.au/

For more information on any of the initiatives or services mentioned in this report, visit the QBCC’s website at www.qbcc.qld.gov.au

© Queensland Building and Construction Commission 2017

http://www.qbcc.qld.gov.au/

Table of ContentsLetter of Compliance..........................................................................................................................5

About Us.............................................................................................................................................62016-2017 Performance Highlights....................................................................................................9

Minister’s Message..........................................................................................................................10QBC Chair’s message......................................................................................................................11

Commissioner’s Foreword...............................................................................................................13Our Structure....................................................................................................................................14

Our Board.....................................................................................................................................15Our Senior Leadership Team.......................................................................................................17

Frontline Services in the Regions.................................................................................................18Our Performance..............................................................................................................................21

Customer Service.........................................................................................................................21Operational Excellence.................................................................................................................23

Our People...................................................................................................................................26Our Services....................................................................................................................................27

CUSTOMER SERVICE................................................................................................................27LICENSING..................................................................................................................................30

QUEENSLAND HOME WARRANTY SCHEME...........................................................................31BUILDING COMPLAINTS AND DISPUTES.................................................................................33

FINANCIAL INVESTIGATIONS....................................................................................................35COMPLIANCE AND ENFORCEMENT........................................................................................37

ADJUDICATION REGISTRY........................................................................................................42INTERNAL REVIEW.....................................................................................................................45

SERVICE TRADES......................................................................................................................46EDUCATION AND ENGAGEMENT.............................................................................................49

Management and Accountability......................................................................................................50Corporate Governance.................................................................................................................53

Acting ethically and responsibly...................................................................................................60Financial Performance.....................................................................................................................66

Glossary...........................................................................................................................................68Index of Tables.................................................................................................................................69

Compliance Checklist.......................................................................................................................70

Letter of Compliance

27 September 2017

The Honourable Mick de Brenni MPMinister for Housing and Public Works and Minister for SportGPO Box 2457Brisbane Qld 4001

Dear Minister,

I am pleased to submit for presentation to the Parliament the Annual Report 2016-2017 and financial statements for the Queensland Building and Construction Commission.

I certify that this Annual Report complies with:

the prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009, and

the detailed requirements set out in the Annual report requirements for Queensland Government agencies.

A checklist outlining the annual reporting requirements can be found at page 139 of this annual report.

Yours sincerely

R. L. (Dick) WilliamsChairQueensland Building and Construction Board

About Us

Who we areThe Queensland Building and Construction Commission (QBCC) is a statutory body established under the Queensland Building and Construction Commission Act 1991 (QBCC Act), reporting to the Honourable Mick de Brenni MP, Minister for Housing and Public Works and Minister for Sport.

We play a central role in regulating the building and construction industry in Queensland. Led by a Commissioner and governed by the Queensland Building and Construction Board (Board), the QBCC comprises a skilled and expert team of staff who work hard to meet the needs of industry participants and the community.

What we doThe QBCC regulates to ensure the maintenance of proper building standards and to achieve a reasonable balance between the interests of building contractors and consumers. We provide licensing services to promote a strong construction sector, and support the industry by providing remedies for defective building work and providing support, education and advice for consumers and those who undertake building work. An independent regulatory body representing Queensland’s service trades, the Service Trades Council (STC), also forms part of the QBCC. The Board provides guidance and leadership to the STC, except for its legislated functions provided for under the Plumbing and Drainage Act 2002. The STC confers on national policy development and implementation for the trade and reports to the Minister. The STC also seeks to strengthen Queensland’s plumbing, air-conditioning, fire protection and mechanical services industries. These activities help promote confidence in Queensland’s building and construction industry.

We engage with contractors, home owners, industry bodies, suppliers and all levels of government to identify and ultimately satisfy their needs and expectations.

Our main services are licensing, compliance and enforcement, dispute resolution, home warranty insurance, and information and education.

During the 2016-2017 financial year, the QBCC administered its regulatory responsibilities under the following Acts and subordinate legislation:

Queensland Building and Construction Commission Act 1991 Queensland Building and Construction Commission Regulation 2003 Building and Construction Industry Payments Act 2004 Building and Construction Industry Payments Regulation 2004 Subcontractors Charges Act 1974 Building Act 1975 Building Regulation 2006 Plumbing and Drainage Act 2002 Standard Plumbing and Drainage Regulation 2003 Plumbing and Drainage Regulation 2003.

Our PurposeFor peace of mind.

Our MissionWe will be recognised as the best and most respected regulatory service provider in Australia.

Our Strategic Plan 2016-2020

The QBCC Strategic Plan 2016-2020 focusses our staff to deliver our core and supporting business lines by setting out three strategic pillars. These pillars align with the Queensland Government’s objectives for the community. These pillars are:

Customer Service Operational Excellence Our PeopleConsistently delivering above and beyond on our customer service obligations, including strengthening our current service offerings.

Continue to deliver improvements in our operational performance while achieving higher levels of service quality.

Building a strong platform of high-performing people and developing and rewarding a workforce which is customer-focussed and embodies QBCC’s values.

To operationalise the Strategic Plan 2016-2020, the QBCC has developed operational business plans that align with the Strategic Plan to guide business areas in achieving their goals. To track its performance against set targets, the QBCC has developed a set of performance indicators which are reported to the Board, and in the Annual Report.

Collectively, we have three core values that form the framework for all our decisions, interactions and activities: Customer First Fairness and Equity Accountability.

We actively manage strategic risks to achieve our objectives through:

Service Delivery focussing on services to ensure customers have confidence in the QBCC’s processes and

decision-making ensuring our systems and other requirements are innovated and implemented to meet

customer requirements and preferences.

Communication ensuring customers, stakeholders and the Government are kept informed through community

awareness campaigns, reference group meetings, briefings and proactive media communications.

Insurance Queensland Home Warranty Scheme premiums are structured appropriately and adequately to

meet actuarially sustainable principles.

Public Interest giving effect to the Government’s strategic direction by implementing regulatory reforms delivering compliance and enforcement programs that increase confidence in the community

that the QBCC is focussed on regulating effectively.

Governance and Security embedding robust governance and controls to secure our services and data and to protect our

customers and our assets.

People and Resourcing achieving business efficiency and effective change through support and investment in new

systems and development of our human capital.

Government’s objectives for the community The QBCC is integral to promoting confidence in the building and construction industry, a key contributor to the Queensland economy. Accordingly, the QBCC contributes to the Queensland Government’s objectives for the community by: delivering quality frontline services creating jobs and a diverse economy.

The other government objectives for the community; integrity, accountability and consultation also underpin the work of the QBCC. In 2016-2017, the QBCC continued to implement policies announced by the Queensland Government through the Department of Housing and Public Works (DHPW), and will continue to do so in 2017-2018 through implementing actions coming out of the Queensland Building Plan as they are announced by DHPW.

2016-2017 Performance Highlights

A new way to submit Notifiable Works forms and make payments through myQBCCRecovered $17,339,446.58 for creditors since the introduction of the MFR policy in October 2014Launch of strategic projects to focus our efforts at being a better regulator

for examples, see information boxes ‘Using Behavioural Economics to improve the way we communicate’ (p. 36) , ‘Working to deliver more efficient services for our customers’ (p. 37), ‘Educating and engaging the community’ (p. 59) and ‘Valuing our staff’ (p. 62)Commenced supporting the Service Trades Council to strengthen the service trades industry

Setting up the Building and Tradie Assistance Register to assist with rebuilding efforts after Cyclone Debbie

Minister’s MessageThe building and construction industry is an important sector that contributes significantly to the Queensland economy. Through the Queensland Building and Construction Commission (QBCC) the Queensland Government plays a critical role in regulating the industry.

In the 2016-2017 financial year, unprecedented legislative reform has occurred that now sets Queensland as the benchmark for having some of the strongest legislation across Australia.

Under the leadership of a new Board and the Commissioner, the QBCC will work to implement this legislative program. This includes changes to the QBCC’s investigative powers and its ability to help rid the State of Non-Conforming Building Products, as well as proposed measures around improving Security of Payment for sub-contractors. These significant changes will improve the safety standards for all Queenslanders, and are designed to help ensure that sub-contractors get paid for the work they do.

As well as the legislative reforms, the QBCC will continue to look to improve how it operates as an effective regulator.

The QBCC will continue to provide peace of mind through the Home Warranty Scheme to protect home owners from losses in what is likely to be their largest investment.

I have asked the QBCC to take a more active role in educating and engaging with the community. By all accounts I am advised by the Commissioner that the inaugural Tradie Tour in June this year was a success and I look forward to hearing the views of our stakeholders in the industry as the QBCC continues this community engagement focus.

There are some key legislative changes that the QBCC will continue to play a key role in implementing. I look forward to working with the Parliament to ensure that we continue to have the strongest building regulation in the country.

The Honourable Mick de Brenni MPMinister for Housing and Public Works and Minister for Sport

QBC Chair’s messageSince the current Queensland Building and Construction Board formed in December 2016, we have strived to ensure that the Queensland Building and Construction Commission returns to its core regulatory role.

Our top priority is that the QBCC operates as a strong, independent regulator to achieve better outcomes for the State’s building industry, its licensees and their clients – home and property owners.

The new Board’s skills, experience, dedication and increased gender diversity has helped turn the QBCC into a strong, contemporary regulator for the construction sector.

As an electrician, being part of a strong, regulated industry is not new to me, and it is safe to say that I am in favour of taking the guess work out of compliance.

On this subject, the QBCC’s important role in the compliance space will be expanded over the next 12 months to help rid the building industry of unscrupulous operators.

In the 2016-2017 year, QBCC compliance officers conducted 4,529 interviews at 1,293 work sites throughout Queensland. That action detected 74 incidences of suspected unlicensed contracting and 17 builders found to have engaged unlicensed contractors to perform building work.

Proactive audits, though, are only one tool in our regulatory toolbox and being a strong regulator involves knowing which tool is the right one for a particular situation.

It may be that a public warning is required, or a court-ordered injunction or prosecution, to deter unscrupulous individuals from operating in the building industry.

To this end, the QBCC will continue to test the law and prosecute complex cases. In 2016-2017, the QBCC successfully completed 43 prosecutions and disciplinary cases, which resulted in fines of $416,456. In addition, the QBCC won compensation for home owners amounting to $269,596.90.

The current QBC Board has commenced changing the frameworks set in place by the previous Board, to help restore trust and confidence in the QBCC.

This includes new powers relating to Minimum Financial Requirements to help the QBCC to remove from the industry those individuals who do not play by the rules.

This is part of our deliberate strategy to reassert the QBCC’s role as an impartial regulator protecting the interests and reputation of those hard-working licensees who do the right thing.

The organisation’s new strategic vision is ambitious but necessary, with data intelligence driving business decisions and informing risk management.

It is already being used to identify the most common types of building work performed by unlicensed operators, and to help develop new educational programs to be delivered by the QBCC.

Moving forward, the QBCC will treat its stakeholders with respect, and apply policies and regulatory obligations consistently and without favour.

That is what we should all expect of a strong, impartial, contemporary regulator, and that is the type of regulator which the QBC Board will continue to develop and support.

In closing, I want to thank the QBCC staff for their conscientious efforts in putting into action the Board’s policies, and for their ongoing work in creating a better regulator for the benefit of industry participants and home owners.

R. L. (Dick) WilliamsChairQueensland Building and Construction Board

Commissioner’s ForewordBefore I go any further, I’d like to thank and acknowledge the hard-working staff of the QBCC.

While writing this Foreword, I was struck by the significant challenges and changes that have occurred in the building and construction sector and at the QBCC during the past 12 months, and our staff continue to deal with these with patience and professionalism.

One of the most important things I have learned about the QBCC is that our focus needs to be on our core regulatory role, on doing what the law requires and allows us to do, and doing it every time.

As a regulator, it is difficult to achieve those aims when any decision we make will almost always displease 50 per cent of our customers. An example of this is that when we don't issue a direction to rectify against a builder, then a home owner is not happy. If we do, the builder is frustrated.

The QBCC’s previous focus on customer satisfaction and determination to be the most respected regulator in the country was not appropriate for our organisation.

Refocussing our resources and energies on our core role has been reflected in areas such as our compliance activities, including an increase in the demerit points issued for offences – up from 1,842 in 2015-2016 to 5,342 in the 2016-2017 year.

Another example is education. We have a clear, mandated role in educating the sector and licensees but we have not been fulfilling that role.

To address this shortcoming, we delivered 10 educational ‘Tradie Tour’ sessions for industry members across Queensland about defective building work issues around waterproofing. These sessions were well received and we are currently working to further develop our role in delivering engaging, topical educational services.

Another area where we are working to ensure we are doing what the law requires of us is to strategically target issues, including those where we need to test the law.

An example of this was our prosecution of a wealth-creation company called Benchmark Private Wealth Pty Ltd, which had connections to the collapsed Members Alliance Group.

This was the first time that the QBCC successfully prosecuted a wealth-creation company for unlicensed building work. They were fined $3,750, and although no conviction was recorded, I am proud that the QBCC took this action.

This result has strengthened our resolve to use all our available powers to support licensees and property owners in the courts as well as on construction sites. As I mentioned at the start of this piece, I have seen a lot of change in the past 12 months and this will continue, with an organisational redesign.

The organisational redesign will provide our staff with decision-making tools that will help them to navigate the complex decisions they make every day, clearly and free of emotion and bias.

I believe that our redesign will get us back to our core regulatory role and enhance our ability to build trust and confidence in the building and construction sector.

Brett Bassett CommissionerQueensland Building and Construction Commission

Our StructureThe QBCC’s management structure chart identifies the key figures within the organisation and their areas of responsibility as at 30 June 2017.

QBC BOARD

R. L. (Dick) Williams – ChairJennifer Robertson – Deputy Chair

Lesley AndersonLeeanne BondMichelle JamesBrett Schimming

Robert Schwarten

COMMISSIONER

Brett Bassett

ACTING EXECUTIVE DIRECTOR

STRATEGY & TRANSFORMA-

TION

Sue Van Eyk (29 April – 30 June

2017)

ASSISTANT COMMISSIONER

Esther Blest

CHIEF FINANCIAL OFFICER

Rebecca Hockings

CHIEF OPERATING

OFFICER

Ben Ward

EXECUTIVE DIRECTOR

HUMAN RESOURCES

Alarna Lane-Mullins

ACTING GENERAL COUNSEL

Tania Carvalho(29 April – 30 June 2017)

Our BoardR. L. (Dick) Williams (Chair) – Appointed 1 December 2016

The QBC Chair, R. L. (Dick) Williams, has served as Company Secretary and Director of Future Skills Limited, a recognised training organisation, since 2009. Mr Williams has also worked as Company Secretary and Director of Connect Assess Australia Limited (trading as Future Skills International) since 2011.

His other directorships include Future Skills Management and Consulting; Energy Skills Queensland and Electrocomms & Energy Utilities Industry Skills Council Ltd (trading as Energy Skills Australia). Mr Williams has also served as Director and Trustee with Energy Super; as a member of Energy Super’s Audit and Risk, Membership Services, Investment, Remuneration and Governance Committees; and as a member of the Electrical Safety Board.

He was ALP Queensland State President from 2012 to 2016 and is a former State Secretary of the Electrical Trades Union of Employees Queensland.

Jennifer Robertson (Deputy Chair) – Appointed 1 December 2016LLB, GradCertBus, FAICD

Ms Robertson is an experienced company director, governance consultant at Board Matters and practising lawyer. She has significant expertise in the Queensland building and construction legislative landscape and has been responsible for a number of commercial and litigious construction matters during her legal career.

As one of Board Matters’ longest serving corporate governance consultants, Jennifer has provided specialised governance services to boards and their directors around Australia. Board Matters’ clients include listed companies, government-owned corporations, not-for-profit entities and small and medium-sized enterprises.

She currently chairs the Defence Reserves Support Council Queensland, is a Director of Brisbane Marine Pilots Pty Ltd, Queensland Independent Schools Block Grant Authority Ltd and sits on the Queensland Work Health and Safety Board.

Lesley Anderson – Appointed 1 December 2016B. Com (Hons), M. Ec (Hons), GAICD

Ms Anderson is an economist with experience in government policy, regulation and long-term liability insurance.

Her most significant regulatory role was as Queensland's Insurance Commissioner for Motor Accident Personal Injury Insurance from 1996 to 2007. Other roles include her early career with the Reserve Bank of Australia, and more recently with the Northern Territory Insurance Office.

Ms Anderson is a current member of the Board of the National Injury Insurance Agency Queensland, and served as a director of Ports North (Far North Queensland Ports Corporation) and as Chair of its Audit Committee from 2009 to 2012.

She has also served on boards of not-for-profit organisations providing social assistance programs.

Leeanne Bond – Appointed 1 December 2016BEChem, MBA, FAICD, RPEQ, CPEng, Hon FIEAust

Ms Bond has 30 years’ corporate experience, including 12 years as a professional company director.

She established WorleyParsons’ business in Queensland, the Northern Territory and Papua New Guinea, growing it from three people to 600 people over 10 years. She has a Bachelor of Chemical Engineering and an MBA from The University of Queensland, is a Fellow of the Australian Institute of Company Directors and an Honorary Fellow of Engineers Australia.

Ms Bond was the first female President of Engineers Australia (Queensland), is a past Deputy Chair of the Board of Professional Engineers and was Australian Professional Engineer of the Year in 2007.

She is also a non-executive director of Engineers Australia, Liquefied Natural Gas Limited (ASX:LNG), Snowy Hydro Limited, Territory Generation and JK Tech P/L.

Michelle James – Appointed 1 December 2016LLB (Hons), GAICD

Ms James is a principal with law firm Maurice Blackburn. She has almost 20 years’ experience in personal injuries litigation and significant experience advocating for the rights of injured people through her work with the Australian Lawyers Alliance.

She has appeared before Parliamentary hearings about legislative reform for workers and in relation to the National Injury Insurance Scheme. She has expertise in organisation leadership and governance, and is an advocate for inclusion and diversity in governance.

Ms James has been Queensland President of the Australian Lawyers Alliance since 2013, the first woman to hold this office, was the 2013 Recipient of the Queensland Law Society Agnes McWhinney Award, is a member of the Queensland Law Society Personal Injuries Specialist Accreditation Committee and a Board Member of Encircle, a community not-for-profit.

Brett Schimming– Appointed 1 December 2016MBA, M.PA, B.Ed, FAICD, FAIM

Mr Schimming is the CEO of Construction Skills Queensland. In this role, he initiates and leads partnerships with industry, government, employers, unions, educators, trainers and associations to develop initiatives and programs to grow the skills base and capacity of Queensland’s building and construction industry workforce.

Mr Schimming has qualifications in education, business and public policy and many years of experience managing training and education organisations. He has served on multiple State and national committees and company boards, and is a Fellow of the Australian Institute of Management and the Australian Institute of Company Directors.

Mr Schimming is Queensland’s representative on the Australian Industry Skills Committee.

Robert Schwarten – Appointed 1 December 2016

Mr Schwarten was Minister for Public Works and Housing from 1998 until 2009 with Information and Communication Technology added to his portfolio in 2006. He retired as Minister for Public Works and Information and Communication Technology in 2011 and from Parliament at the 2012 Queensland election.

Mr Schwarten took over responsibility for the then Queensland Building Services Authority in 2001.

As Minister for Public Works and Housing, he had responsibility for the construction industry for more than a decade.

He also commenced his working life in the construction industry, working for his building contractor father before completing an education degree.

He holds the honorific, The Honourable, vested in him by the Governor-in-Council following his retirement from the ministry, and was awarded an honorary doctorate by Central Queensland University in 2006.

Mr Schwarten was the member representing Rockhampton for more than 20 years.

Our Senior Leadership TeamAs at 30 June 2017

Brett BassettCommissionerBEd, MBA, FGIA, GAICD, CFE

Brett was previously the Queensland Regional Commissioner for the Australian Securities and Investments Commission (ASIC) for five years and has held regulatory positions with the Queensland Police, NSW Department of Fair Trading, Australian Competition and Consumer Commission (ACCC) and ASIC. Brett has significant expertise with regulation of the construction industry having chaired the inaugural Federal Government Building and Construction Roundtable and led ASIC’s response to the Senate Inquiry into Insolvency in the Building and Construction Sector.

Sue Van EykGeneral Counsel (1 July 2016 – 27 April 2017)Acting Executive Director Strategy & Transformation (29 April - 30 June 2017)LLB, BA, GAICD, MQLS

Sue is a senior professional with more than 15 years’ experience in the building and construction industry in both the public and private sectors. She is admitted as a solicitor to the Supreme Court of Queensland and to the High Court of Australia. She also has more than 12 years’ experience as a non-executive director on State and national boards. Sue is currently a member of the Queensland Law Society Building and Infrastructure Committee and the Australian Institute of Company Directors.

Esther BlestAssistant CommissionerBA(CCJ), MQLS

Esther commenced with us in August 2016. She has worked for the Queensland Government for 20 years with the past 10 in senior positions. Esther previously worked at the Department of Justice and Attorney-General, the Office of Liquor and Gaming Regulation, and at the former Department of Infrastructure and Planning. She has been involved in investigations for over 26 years and is a member of the Queensland Law Society and the Australian and New Zealand Society of Criminology. Esther also holds a statutory position as a member of the Service Trades Council.

Rebecca HockingsChief Financial Officer BBus(Acc), BAppSc(Chem), CPA

Rebecca has been with us since 2006. She is CPA qualified and with 10 years’ experience in accounting, has worked in every position within the Finance team prior to her elevation to Chief Financial Officer. Rebecca has previously been recognised for her outstanding work, receiving a nomination for the title of 'Young CFO of the Year’.

Ben WardChief Operating OfficerMBA, MIT, MCP, Prince2P, BHlthSc, DipN

Ben commenced with us in June 2015 as the Chief Information Officer, and was appointed to the COO position in December 2016. Ben has more than 15 years’ senior executive experience within private, non-profit and public sectors and has substantive capabilities in strategy, governance, technology innovation and project delivery. Ben is a people and outcomes-focussed COO who is passionate about driving business outcomes and organisational improvements.

Alarna Lane-MullinsExecutive Director, Human ResourcesLLB, BBus

Alarna is a HR professional with more than 15 years’ experience across the public and private sectors. At the QBCC, Alarna leads a multi-disciplinary HR team and is responsible for the HR, learning and development and workplace health and safety functions. Prior to this role, Alarna held numerous HR and industrial relations positions within the higher education sector and was previously an employment lawyer.

Tania CarvalhoActing General Counsel (29 April – 30 June 2017)LLB, Grad Dip LP

Tania is an experienced lawyer with more than 15 years’ experience in both the public and private sectors, here and overseas. She is admitted as a solicitor to the Supreme Court of Queensland and the High Court of Australia, and has managed a governance risk and compliance function within a Queensland Statutory Authority.

Frontline Services in the RegionsThe QBCC provides a full range of regulatory services for consumers and industry participants. These are facilitated by eight regionally based service centres and the Brisbane office located in West End. All Regional Service Centres are staffed between the hours of 8am and 5pm, Monday to Friday. Each region has a defined inspectorate encompassing local government boundaries, which for some regions can be upwards of 450,000 km2 (Cairns region).

Some of the core regulatory services provided by all our Regional Service Centres include: education and advisory services for all industry participants and consumers dispute resolution services, including early dispute resolution licensing of building and service trade contractors and compliance investigations and

enforcement of unlicensed operators insurance policy management under the Queensland Home Warranty Scheme.

“This year we have continued to work with the QBCC and believe their frontline staff in regional Queensland to be a major asset. We also appreciate the willingness of senior staff to engage on important industry issues.”

Paul BidwellDeputy CEOMaster Builders Queensland

Overview of the QBCC’s Regional Service Centres

Gold Coast Robina Super Centre, Suite 26, 86 Robina Town Centre Drive, Robina Qld 4226Staffing numbers: 13 full-time equivalent staff Regional Service Manager: Shane MurphyActive QBCC licensees: 10,793

Statistics for 2016-2017:- Early Dispute Resolution complaints: 166 - Internal review cases: 35- Disputes: 343 - Directions issued: 76 - Insurance claims: 94 - Insurance claims finalised: 79 - Compliance activities: Targeted operation which resulted in 25 sites visited, 135 interviews

conducted, and 10 suspected unlicensed contractors detected.

Toowoomba 200 Hume Street, East Toowoomba Qld 4350Staffing numbers: 8 full-time equivalent staffRegional Service Manager: Peter JacquesActive QBCC licensees: 5,771

Statistics for 2016-2017:- Early Dispute Resolution complaints: 99- Internal review cases: 27- Disputes: 215- Directions issued: 32- Insurance claims: 145 - Insurance claims finalised: 78- Compliance activities: 89 building sites visited with 275 interviews conducted, resulting in three

suspected unlicensed contractors being detected. One targeted operation resulted in 58 sites being visited and 231 interviews conducted, with one suspected unlicensed contractor and one builder engaging unlicensed contractors detected.

Sunshine Coast 6 Pikki Street, Maroochydore Qld 4558Staffing numbers: 15 full-time equivalent staffRegional Service Manager: Paul RichesActive QBCC licensees: 9,554

Statistics for 2016-2017:- Early Dispute Resolution complaints: 172- Internal review cases: 32- Disputes: 317 - Directions issued: 79 - Insurance claims: 91- Insurance claims finalised: 94- Compliance activities: 135 sites visited with 325 interviews conducted and 27 proactive site

inspections.

Maryborough Suite 1, 208 Lennox Street, Maryborough Qld 4650Staffing numbers: 8 full-time equivalent staffRegional Service Manager: Daniel StephensenActive QBCC licensees: 3,875

Statistics for 2016-2017:- Early Dispute Resolution complaints: 42- Internal review cases: 10- Disputes: 130 - Directions issued: 19- Insurance claims: 25 - Insurance claims finalised: 40- Compliance activities: 84 sites visited, 292 interviews conducted with five suspected unlicensed

contractors/builders engaging unlicensed contractors detected; 29 infringement notices were issued.

Rockhampton 194 Alma Street, Rockhampton Qld 4700Staffing numbers: 8 full-time equivalent staffRegional Service Manager: Edward GoodsallActive QBCC licensees: 2,972

Statistics for 2016-2017:- Early Dispute Resolution complaints: 37- Internal review cases: 45- Disputes: 173- Directions issued: 53- Insurance claims: 34- Insurance claims finalised: 30- Compliance activities: Targeted operation conducted which resulted in 113 sites visited, 253

interviews conducted and two suspected unlicensed contractors detected, and two suspected builders engaging unlicensed contractors detected.

Mackay Tenancy 2, 42 East Gordon Street, Mackay Qld 4740Staffing numbers: 8 full-time equivalent staffRegional Service Manager: Phillip SladeActive QBCC licensees: 2,677

Statistics for 2016-2017: - Early Dispute Resolution complaints: 25- Internal review cases: 19- Disputes: 260- Directions issued: 156 - Insurance claims: 157- Insurance claims finalised: 48- Compliance activities: 43 sites were visited with 124 interviews conducted. One unlicensed

contractor was detected.

Townsville Unit 2, 22 Hervey Range Road, Thuringowa Central Qld 4817Staffing numbers: 8 full-time equivalent staffRegional Service Manager: William PiperActive QBCC licensees: 3,889

Statistics for 2016-2017:- Early Dispute Resolution complaints: 37- Internal review cases: 21- Disputes: 191- Directions issued: 62- Insurance claims: 57- Insurance claims finalised: 32- Compliance activities: 229 sites were visited and 394 interviews conducted, 28 infringement notices

issued with four unlicensed contractors identified.

Cairns 181 Aumuller Street, Westcourt Qld 4870Staffing numbers: 8 full-time equivalent staff Regional Service Manager: William CourtneyActive QBCC licensees: 5,226

Statistics for 2016-17:- Early Dispute Resolution complaints: 47 - Internal review cases: 4- Disputes: 121- Directions issued: 23- Insurance claims: 20 - Insurance claims finalised: 31- Compliance activities: 121 sites were visited with 265 interviews conducted, resulting in six

unlicensed contractors being identified and investigated. Fifty-three infringement notices issued.- Joint Licensing Audit in Cairns/Brisbane (10-13 April): resulting in 49 sites visited with 180 interviews

conducted, and two suspected unlicensed contractors detected.

Our PerformanceThis section details the QBCC’s performance for 2016-2017 in relation to the performance indicators as set out in the Strategic Plan 2016-2020. Other qualitative achievements are contained in the ‘Our Services’ and ‘Our People’ sections of the Annual Report.

Customer ServiceImproved Customer Satisfaction with Respect to Delivery of Our Services

Table 1: Customer Satisfaction Success Measures

Measure Target Actual Status CommentsOverall customer satisfaction*

80% 72.3% Multiple changes to customer-facing systems were made in 2016-2017 causing some administrative issues and processing delays impacting response timeframes. This had an impact on overall customer satisfaction.

Licensee satisfaction 80% 77.5% The release of new online systems requiring licensees to register with the QBCC online portal, and some issues related to data differences between the old and new systems caused a decline in licensee satisfaction. Although changes to the Queensland Home Warranty Scheme premiums were beneficial for the most part, premiums for renovation work had increased, and painters and swimming pool contractors had a negative reaction to a legislative requirement to pay insurance for the first time.

Social media sentiment metric

>30% 62%

Percentage of calls answered within 60 seconds

80% 51% X The QBCC saw an increase in call volumes and average handling times due to system outages, additional questions from customers in relation to the new way to submit Notifiable Works through myQBCC, and calls from home owners affected by Cyclone Debbie. The system outages meant that our customers had to use our call centres instead of our online platforms.

Respond to email and web enquiries within 2 business days

90% 100%

Status is reported using the below key: = target achieved or exceeded = slightly outside target, risk being managed X = target not reached (see Comments column).* This is a 2016-2017 Service Delivery Statement Service Standard.

Full implementation of a new customer relationship management system across QBCC

Table 2: Customer Relationship Management System Success Measures

Measure Target Actual Status CommentsCompletion of Service Delivery 2015 project – Phase 2 Insurance Business

100 % complete

100% complete

Status is reported using the below key: = target achieved or exceeded = slightly outside target, risk being managed X = target not reached (see comments column).

Improved decision-making and processing times for applications, permits and case management – reviewing and improving our policies and procedures– identifying and implementing opportunities for improvement as outcomes of audit and internal review.

Achievements: A number of Internal Audit recommendations have been completed and closed. These

recommendations pertain to improvements in the areas of project and portfolio governance, procurement and contract management. The benefits of these improvements will ensure greater effectiveness of the Project Management Office, ensure improved controls are in place to support QBCC’s procurement activities and that contractual commitments and obligations by QBCC suppliers are effectively met.

Operational ExcellenceIncreasing regulatory effectiveness and customer confidence– implementing government reforms to effectively reduce contractor insolvency,

improve the security of payment, the certification system and the licensing framework

– creating awareness, educating the industry and providing advice on the non-conforming products, home warranty insurance scheme reforms and QBCC’s core business lines.

Table 3: Regulatory Effectiveness and Customer Confidence Success Measures

Measure Target Actual Status CommentsCustomer recognition: Licensee brand awareness

>70% 72%

Customer recognition: Home owner brand awareness

>15% 20%

Levels of unlicensed operators identified through audits

<4% 1.63%

Status is reported using the below key: = target achieved or exceeded = slightly outside target, risk being managed X = target not reached (see Comments column).

Continued business efficiency gains and reduction in cost to serve– decommissioning of unsupported and outdated systems and applications– implementation of an Information Services infrastructure roadmap.

Table 4: Business Efficiency Gains and Reduction In Cost To Serve Success Measures

Measure Target Actual Status Comments

Ability for customers to transact with QBCC online applications 24x7x365

98% 97.9% QBCC’s current Information Technology (IT) infrastructure is ageing and nearing end of life. A project to modernise and build a secure, resilient IT infrastructure in the cloud is underway. This will minimise current risks and improve system availability.

Annual reduction in the quantity of QBCC systems

4 (1 per quarter)

4

IS Roadmap tracking within annualised budget costs

95% 97%


Other performance indicators

Table 5: Licensing Success Measures

Measure Target Actual Status CommentsAverage number of days to process licence applications*

30 days

22 days

Percentage of owner-builder permits approved within 15 working days*

90% 81.5% The average time to complete an application is 17 days at present. Applications require a longer time to complete if the QBCC needs to request further information from the applicant.

Finalise a licence application within 30 working days

80% 74% The QBCC faced high numbers of licence enquiries and applications in 2016-2017, as well as the implementation of new IT systems which created issues for staff. Performance of this measure was above 80% in the last quarter of 2016-2017. We expect that performance targets in 2017-2018 will be met.

Percentage of Pool Safety Inspectors licence applications processed in 5 business days

80% 99%

Plumbers and drainer licence applications processed in 5 business days

80% 83%

Percentage of plumbing and drainage work complaints investigated within 120 days

80% 76% The variance in performance is due to staff being re-directed to assist in investigations relating to the use of soft-lead solders in the installations of hot water systems as this was a potential public health risk.


* This is a 2016-2017 Service Delivery Statement Service Standard.

Table 6: Dispute Resolution Success Measures

Measure Target Actual Status CommentsPercentage of early dispute resolution cases finalised within 28 days*

90% 89% The performance variance is due to a combination of factors including the complexity of cases, and the time taken for home owners and contractors to respond to requests for additional information.

Contact customers within 5 working days of receipt of their complaint lodged during construction

90% 82% The QBCC anticipates that structural changes in the Brisbane office will boost resources allocated to this function and process improvements will assist in future performance.



Table 7: Internal Review Success Measures

Measure Target Actual Status CommentsPercentage of internal review applicants contacted within 2 business days*

95% 93.7% There have been issues where in a small number of cases, staff were waiting for information to verify case information, or to verify that cases were not duplicated. The QBCC will continue to monitor the performance of this measure.

Provide a decision on the review within 28

85% 25% X The performance variance is due to continued issues with staffing levels. The QBCC is working

calendar days to reduce the time taken to make decisions by reviewing its triage and assessment process, conducting a correspondence review and considering structural changes. The 2016-2017 result represents an improvement over the previous year. The percentage of reviews completed within 28 days has been trending upward throughout 2016-2017.



Table 8: Insurance Success Measures

Measure Target Actual Status CommentsPercentage of insurance claims for defective work assessed and response provided within 35 business days*

90% 37% X The variance between the target and the actual result is due to a combination of issues including the complexity of many defects claims resulting in the need to engage engineers and other consultants, delays caused by owners providing information or granting access, the transition to a new claims system and resourcing shortfalls.

Contact customers within two working days of receipt of their insurance claim

90% 86% O The variance between the target and the actual result is due to the poor performance of a small number of staff which has been addressed.



Table 9: Compliance and Enforcement Success Measures

Measure Target Actual Status CommentsPercentage of complainants contacted in two business days of receipt of the complaint

90% 98%

Percentage of complainants contacted and advised on the outcome of their complaint’s assessment within 28 days

95% 88% The variance is due to unplanned leave and time delay in the supply of evidence from complainants.


Table 10: Payment Dispute Resolution Success Measures

Measure Target Actual Status CommentsPercentage of adjudication applications referred to an adjudicator within 4 days*

97% 99.7%



Our PeopleIncreased customer-focussed and capable workforce – continuous training and development of our staff to ensure a highly engaged,

results-oriented workforce.

Table 11: Increased Customer-Focussed and Capable Workforce Success Measures

Measure Target Actual Status CommentsIncreased employee engagement

80% N/A N/A In June 2016, the People and Culture Committee agreed that this survey would not be undertaken for 12 months, in order to allow steps to be taken to improve engagement. The Commissioner released the Employee Value Proposition Strategic Project on 17 November 2016 which is designed to increase employee engagement.

Low staff absenteeism rates (days/person)

8 11 X QBCC’s absenteeism rate has been affected by long-term WorkCover claims and unanticipated non-work related long-term leave.

Separation rate 9% 9%

Percentage of participants pass relevant training assessments

95% 89% The performance variance is due to some staff commencing training, however, due to competing priorities, were unable to complete it. Where staff were able to complete their course, 100 per cent of them have passed their relevant training assessments.


Our ServicesThis section details the QBCC’s performance for 2016-2017 in relation to the delivery of our services.

CUSTOMER SERVICECustomers’ needs and expectations of the QBCC are constantly evolving. In the past 12 months, the QBCC implemented a number of changes to make it easier for our customers to access our service. The changes included:

creating the ability for QBCC customers to purchase Queensland Home Warranty insurance through the self-service portal, myQBCC, on 31 October 2016. The service is available through any device 24 hours 7 days a week.

launching a new way to submit Notifiable Work forms and make payments through myQBCC, on 26 April 2017. This also included giving local governments access to search and audit Notifiable Work. To help our customers make the best use of the system, the QBCC created resources to guide users through the system. This new system replaces the previous Plumbing Application System (PAS). Feedback from the industry has been positive.

moving from a concierge system to an Interactive Response System (IVR) in our contact centre in October 2016. The IVR has allowed QBCC to tailor information options specific to our customers’ needs. The IVR also allows our customers to record after-hours voicemails, which we will reply to within three business days.

In 2016-2017, we answered 203,805 calls, with 18,191 calls answered outside of the QBCC’s normal business hours, including weekends.

Table 12: Customer Contact Centre statistics over the past five years

Financial year Customer phone calls Customer emails2012-2013 179,675 4,5942013-2014* 176,698 7,1752014-2015 216,155 5,8592015-2016 222,097 7,8332016-2017 221,996 10,842*Between 1 July 2013 and 30 November 2013 the statistics relate to the former authority (QBSA). Statistics between 1 December 2013 and 30 June 2017 relate to activities of the QBCC. The statistics have been reported together to allow for trend analysis.

Industry feedback on the new way to submit Notifiable Work forms

Using Behavioural Economics to improve the way we communicate

QBCC has engaged Decision Design to work alongside our Behaviour and Design Team to advise on methods and correspondence to support the QBCC, and improve how we communicate. This body of work is undertaken to help customer interactions with the QBCC be more effective, reducing customer frustrations.

Some examples of the work done so far include: Residential and Commercial

Construction Work Complaint form - review undertaken and business requirements provided. Changes will reduce work for the QBCC.

customer acknowledgement email - re-written to ensure customers understand the information required to enable complaints to be processed.

licence application process – rewritten to ensure customers understand the information required to enable their applications to be processed as quickly as possible.

outward-facing correspondence - piloting changes to correspondence by applying behavioural economics, making us more effective in our communication and more successful at impacting customer behaviour.

building inspection touch points - applying behavioural economics to influence change for a better outcome between our customers and the QBCC.

QBCC homepage – developing recommendations to improve our communication to help our customers better understand our processes.

Working to deliver more efficient services for our customers

The QBCC aims to offer its services to the community with the end goal of delivering a better and more efficient service for our customers.

In April 2017, the Multi-Disciplinary Team (MDT) Pilot Project commenced in the Brisbane and Sunshine Coast offices. The MDTs are functional business units that include a range of currently separated business functions.

The MDTs will be piloted for a period of 12 months and aim to help the QBCC to: achieve a better balance in the way the

QBCC communicates and corresponds improve timeframes for customers and

clients regarding their case resolution decrease the number of hand-offs and

touch points to facilitate improved service delivery

increase transparency, consistency and equity in decisions that are made for customers and the industry

proactively identify risks that potentially impact the building and construction industry

increase efficiencies across the business (both financial and operational)

test and refine a framework(s) to help support the organisational transformation over the next three to five years.

Social media and website performance

The QBCC continues to reach out to the community using social media and our website. This ensures that we are able to more effectively engage with our customers.

In 2016-2017, the QBCC recorded the following:

Subscribers % increase from 2015-2016

Impressions % increase from 2015-2016

Facebook 6,453 46% 1,339,538 -25%Twitter 1,652 19.70% 3,287,978 -19.75%Instagram 4,110 206% - -YouTube 277 56.40% 40,879 51%Google+ 116 13.70% - -LinkedIn 2,528 28.25% 596,621 39.70Total 15,136 61% 5,265,016 -16.90%

In 2016-2017, the QBCC website recorded 8,945,570 page views, a decrease of 32.6 per cent from 2015-2016. The decrease could be due to the highly successful 2015-2016 pool safety standard campaign launched in November 2015, which included television and radio commercials. This campaign brought significant traffic to the QBCC website in the 2015-2016 period.

The QBCC had 15,136 social media subscribers in the reporting period, which is a 61 per cent increase compared to 2015-2016.

LICENSING The QBCC provides licensing services to a range of customers in the building and construction industry including those in the service trades. The table below shows the number of QBCC licensees as at 30 June 2017.

Table 13: QBCC licensees as at 30 June 2017

Individual Company TotalBuilder 26,139* 8,438 34,577*Builder restricted 2,362* 656 3,018*Trade contractor 40,522* 9,518 50,040*Fire occupational 1,376* N/A 1,376*Certifier 453 N/A 453Plumbing (occupational only)

8,198 N/A 8,198

Pool safety inspectors

697 N/A 697

Total 79,747* 18,612 98,359** The numbers include both nominees and supervisors.

The QBCC also processes mutual recognition licence applications from interstate licence holders seeking a QBCC licence to work in Queensland. During the reporting period, the QBCC received 644 mutual recognition applications.

New licensing requirementsThere were only minor changes to the legislation this financial year. Farm fencing was amended to allow owners to build fences if the fence is constructed on agricultural or pastoral land regardless of its value.

QUEENSLAND HOME WARRANTY SCHEME The QBCC administers a home warranty scheme that provides insurance cover for residential construction work in Queensland. The scheme protects home owners from loss where the licensed contractor does not complete the contracted works or fails to rectify defective work.

During 2016-2017, the QBCC processed 105,256 insurance policies. The breakdown of residential construction work carried out during the period was 67 per cent alterations and additions compared to 33 per cent new home construction.

*Between 1 July 2013 and 30 November 2013 the statistics relate to the former authority (QBSA). Statistics between 1 December 2013 and 30 June 2017 relate to activities of the QBCC. The statistics have been reported together to allow for trend analysis.**As at 28 October 2016, the type of work covered by the Queensland Home Warranty Scheme was expanded. The introduction of cover for manufactured homes, which was previously excluded, resulted in an increase in policies covered under the “New construction” data. The introduction of cover for swimming pools and additional work within the envelope of the building, resulted in an increase in policies covered under the “Alteration/Addition” data.

In 2016-2017, the QBCC received $96.2 million in insurance premiums compared to $107.4 million in 2015-2016. This was due to changes to premiums on 28 October 2016, where premiums for the majority of consumers were reduced, thus affecting premium income to QBCC.

The QBCC approved a total of $45.1 million in insurance claim costs during 2016-2017. This included $22.1 million for defects claims, $17.0 million for non-completion claims and $6 million for subsidence claims. The graph on the next page provides a historical view of insurance claims approved by type under the scheme over the past five years.

To ensure a solid financial framework for its insurance operations, the QBCC has continued to comply with various Australian Prudential Regulatory Authority (APRA) standards that apply to general insurers to the extent that it is reasonable and prudent for the QBCC to do so, including a prudential margin loading in relation to projected future claims to achieve the APRA requirement of a 75 per cent confidence level that the outstanding claims provisions will be adequate.

BUILDING COMPLAINTS AND DISPUTES The QBCC may be able to help where there are building disputes between home owners and principal contractors where the situation has come to a standstill. During 2016–2017, these types of building disputes totalled 5,543, of which 4,015 related to works after the construction was completed and 1,528 which were during the construction process. This represented a decrease of 1.3 per cent from 2015-2016 which totalled 5,616 building disputes.

*Between 1 July 2013 and 30 November 2013 the statistics relate to the former authority (QBSA). Statistics between 1 December 2013 and 30 June 2017 relate to activities of the QBCC. The statistics have been reported together to allow for trend analysis.

In the reporting period, the most common defect complaint related to Joinery.

Table 14: Ten most common building defects in 2016-2017

Ranking Total

Joinery 1 538Roof cladding 2 460Tiling (floor) 3 435Wet areas (waterproofing membranes internal) 4 305Painting - internal 5 304Linings (wall internal) 6 271Painting - external 7 254Tiling (wall) 8 207Linings (ceiling internal) 9 199Linings (wall external) 10 196

Early Dispute Resolution

In situations where there are disputes between QBCC principal contractors and home owners, the QBCC offers a free Early Dispute Resolution (EDR) service. This service is for domestic building work in excess of $3,300 where concerns regarding defective building work, non-completion and contractual issues arise prior to completion of the contract.

During 2016-2017, the QBCC received 1,528 EDR cases, with 1,522 finalised during the reporting period. This is a 9 per cent decrease compared to 2015-2016, where 1,689 cases were received.

Proactive building inspections

The QBCC conducts proactive audits of building works under construction to assess compliance against the National Construction Code and relevant Australian Standards. Where non-compliance is noted, builders are encouraged to rectify the defective work to avoid further action by the QBCC. Builders are finding they are better placed to have the responsible subcontractors remedy their defective works while they are still onsite and while retention funds are in place.

In 2016-2017, the QBCC focussed on auditing multi-residential buildings (both townhouses and high-rise constructions) as part of our annual Statewide program of auditing works.

The QBCC also performed audits on single detached dwellings and a variety of issues have been found such as: missing waterstops at wet area doorways and under the rims of island baths framing anchors being inappropriately secured incorrect fixing of wet area wall sheeting being finished with wall tiles incorrect fixing of garage plasterboard ceiling sheets.

In 2016-2017, the QBCC inspected 1,562 sites involving 3,988 residential units. The QBCC continues to receive strong support for this proactive initiative from builders and contractors.

FINANCIAL INVESTIGATIONS To strengthen and grow the building and construction industry, the QBCC implemented the Minimum Financial Requirements (MFR) policy in 2014. It allows the QBCC to cancel a licence in the event that a licensee does not pay all undisputed debts within industry or agreed trading terms. Whilst the QBCC cannot prevent collapses within the industry, it can assist subcontractors and other industry participants to get paid through conducting investigations into monies owed. As part of the new Board’s focus to ensure the policy frameworks are appropriate, the Board commenced a review of the MFR policy.

Activities under the Minimum Financial Requirements (MFR) policy

Under the MFR policy, the QBCC undertook 347 non-payment of debts investigations, resulting in the suspension of 102 licences and the cancellation of 39 licences. The QBCC also conducted audits resulting in another 101 licences suspended, and another 56 licences cancelled. Since the introduction of the MFR policy in October 2014, the QBCC has recovered $17,339,446.58 for creditors.

Table 15: Financial Investigations - Activities under MFR policy

2016-2017

Financial audits 484

Non-payment of debt investigations 347

Suspension – non-payment of debt 102

Suspension – non-compliance with audit 63

Suspension – not meeting MFR 38

Cancellation – non-payment of debt 39

Cancellation – non-compliance with audit 33

Cancellation – not meeting MFR 23

Licence suspensions and cancellations

The QBCC assesses a licensee’s entitlement to hold a licence and where appropriate, imposes exclusions, disqualifications and bans on individuals and companies.

There were 85 companies and 123 individuals excluded from holding a QBCC contractor or nominee supervisor licence due to their involvement in a financial failure during the period. Permanent exclusion was imposed on 33 individuals for their involvement in a second financial failure.

There were 15 contractor licences immediately suspended due to insolvent trading or other serious risk.


New powers proposed for QBCC

The Minister for Housing and Public Works and Minister for Sport, the Honourable Mick de Brenni MP, in May 2017, tabled a bill in Parliament. The bill proposes, among other new powers, to allow the QBCC to suspend or cancel a builder’s licence who fails to ensure the safety of workers and who exposes workers to risk. The bill is being considered by the parliamentary Public Works and Utilities Committee.

COMPLIANCE AND ENFORCEMENT The QBCC investigates complaints made by consumers, contractors and other industry participants in order to support a fair playing field for Queensland licensees by identifying and penalising unlawful operations. The QBCC also carries out proactive audits and investigations to detect unlicensed contracting and other breaches of legislative requirements.

Licensing audits

To ensure a level playing field, the QBCC utilises its Licensing Audit Program to target unlicensed contracting, with the aim to rid the industry of unscrupulous operators and to penalise unlawful operations.

The Licensing Audit Program targets random building sites, all types of building work, in all areas of Queensland. The QBCC believes the program is an effective tool in assisting to reduce the rate of unlicensed contracting. The audits will continue to be undertaken randomly to allow the QBCC to objectively assess the level of unlicensed contracting in the industry.

In 2016-2017, the QBCC conducted 4,529 individual compliance interviews on 1,293 sites. From these interviews, 74 incidences of suspected unlicensed contracting were detected. The rate of unlicensed contracting as detected was 1.63 per cent during the reporting period.

Table 16: Licensing audits over the past five years

2012-2013

2013-2014* 2014-2015 2015-2016 2016-2017

Interviews conducted 6,972 7,667 5,533 4,145 4,529

Suspected number of unlicensed contractors

62 98 145 69 74

Percentage of unlicensed contractors

0.89% 1.28% 2.62% 1.66% 1.63%


Repair work after Cyclone Debbie

In the aftermath of Cyclone Debbie, the QBCC set up online registers on its website for local, licensed contractors who may be able to help with repair work. The QBCC also sent extra building inspectors to cyclone-affected areas to oversee repair work on homes and properties.

Contractual investigations

Schedule 1B of the QBCC Act regulates contracts for domestic building work between contractors and home owners. Part 4A of the QBCC Act regulates subcontracts between contractors and builders and commercial contracts. The QBCC examines suspected breaches and when required, takes appropriate action in the circumstances, including issuing an infringement notice.

Where the QBCC has reasonable concerns that a licensee has not been complying with the requirements of the QBCC Act, it may conduct an audit requiring the licensee to produce all contracts for review by the QBCC.

Table 17: Contractual investigations over the past five years

2012-2013 2013-2014* 2014-2015 2015-2016 2016-2017DBCA+ QBCC

Act Part 4

DBCA+ QBCC Act Part

4

DBCA+ QBCC Act

Part 4A

Domestic

Contract

QBCC Act

Part 4A

Domestic

Contract

QBCC Act

Part 4A

Audits 5 0 3 0 0 0 1 2 0 0Investigations

310 38 346 54 265 21 283 33 468 34

Warnings issued

25 0 22 0 20 0 54 6 164 7

Contractors issued with an infringement notice

163 21 114 2 155 8 145 6 300 4

Infringement notices issued

297 25 182 2 235 10 157 10 305 5

*Between 1 July 2013 and 30 November 2013 the statistics relate to the former authority (QBSA). Statistics between 1 December 2013 and 30 June 2017 relate to activities of the QBCC. The statistics have been reported together to allow for trend analysis.+ The Domestic Building Contracts Act 2000 (DBCA) regulated contracts for domestic building work between contractors and home owners prior to 1 July 2015 when it was repealed and replaced by Schedule 1B. In some instances DBCA offences could continue to be investigated after the DBCA was repealed.

Demerit points issued to contractors for breaches of legislation

During 2016-2017, 516 contractors had demerit points listed against their records. A total of 5,342 demerit points were issued, which included 2,438 demerit points issued for contractual offences, 2,166 demerit points issued to contractors for failing to rectify defective building work and 70 demerit points issued for unsatisfied judgment debts.

Table 18: Demerit points issued over the past five years

2012-2013

2013-2014*

2014-2015

2015-2016

2016-2017

Demerit points issued for unsatisfied judgment debts

730 698 300 40 70

Demerit points issued for contractual offences

452 424 462 342 2,438

Demerit points issued for failure to rectify

430 408 374 1,114 2,166

Demerit points issued for failing to pay insurance premium

206 176 154 234 334

Demerit points issued for carrying out work without a nominee

4 0 2 0 0

Demerit points – other - - - 112 334Contractors issued with demerit points

372 385 367 275 516

Total demerit points issued 1,822 1,706 1,292 1,842** 5,342*Between 1 July 2013 to 30 November 2013 the statistics relate to the former authority (QBSA). Statistics between 1 December 2013 and 30 June 2017 relate to activities of the QBCC. The statistics have been reported together to allow for trend analysis.** In the 2015-2016 Annual Report, it was reported that the total demerit points issued for the 2015-2016 year was 1,730. It should have read 1,842 as other demerit points issued during the reporting period were erroneously excluded.

Certifier compliance

As at 30 June 2017, there were 453 licensed building certifiers.

At the start of the reporting period, the QBCC had 26 open certifier complaints. An additional 164 complaints were received during 2016-2017. During the reporting period, the QBCC finalised 149 complaints, with 41 remaining open at 30 June 2017.

During the reporting period, the QBCC also commenced 79 technical audits and 68 assessment audits. The certification team finalised 91 technical audits and 66 assessment audits over the 12 months. As at 30 June 2017 there were two technical audits and six assessment audits still underway.

Of the 306 completed investigations (including complaints, technical and assessment audits) undertaken in 2016-2017, 55 certifiers were found to have engaged in unsatisfactory conduct, one certifier was found to have engaged in professional misconduct, 66 complaints were either withdrawn or closed due to insufficient evidence, and in 162 cases the certifier’s conduct was found to be satisfactory. 22 cases were duplicates or involved a certifier who was no longer practising.

*Between 1 July 2013 to 30 November 2013 the statistics relate to the former authority (QBSA). Statistics between 1 December 2013 and 30 June 2017 relate to activities of the QBCC. The statistics have been reported together to allow for trend analysis.

Debt recovery

The QBCC holds licensees responsible for monies owed as a result of claims made against the Queensland Home Warranty Scheme as well as Magistrates Court and Queensland Civil and Administrative Tribunal (QCAT) penalties.

The QBCC recovered $1.76 million in 2016-2017, including $1.59 million recovered for the Queensland Home Warranty Scheme.

During the reporting period, there was $5,500 recovered for QCAT penalties and $155,903 for Magistrates Court penalties.

In 2016-2017, 65 debtors were referred to the QBCC’s Debt Recovery Legal Panel for new legal recovery action. Legal recovery action accounted for $223,509 of all recovery for the Queensland Home Warranty Scheme during the reporting period.

Recovery of Magistrates Court fines is the responsibility of the State Penalties Enforcement Registry (SPER).


$3,036,894 $4,191,179 $2,094,559 $2,226,501

ADJUDICATION REGISTRY The Adjudication Registry (the Registry) was established under the Building and Construction Industry Payments Act 2004 (BCIP Act). The BCIP Act was introduced to improve payment dispute outcomes in the building and construction industry, and applies to any contracts entered into on or after 1 October 2004.

The BCIP Act provides persons who have carried out construction work or who have supplied related goods or services under a construction contract with an entitlement to progress payments. It also establishes a rapid adjudication process to facilitate prompt recovery of outstanding amounts. The BCIP Act provides an alternative means to obtaining payment to the traditional legal and civil options.

As at 30 June 2017, there were 113 adjudicators registered under the BCIP Act.

Overview of registry outcomes for 2016-2017

Table 19: Adjudication registry claimed statistics for 2016-2017

Total value of claims $110,480,289Maximum claim $11,414,395Minimum claim $100Average claim $179,935

Table 20: Adjudication registry decision statistics

Total value of claims – decision released $1,084,167,871Maximum claim value – decision released $994,812,693Minimum claim value – decision released $183Average claim value – decision released $3,578,112Total value of adjudicated amount – decision released $648,109,051

Note: A claim valued at $994,812,693 was lodged in 2015–2016. The claim was decided in 2016-2017 (12 July 2016) for the adjudicated amount of $600,638,513.

Lodgement and allocation of adjudication applications

Adjudication applications can be lodged at the Registry over the counter at any QBCC office, by mail, by fax and online. As at 30 June 2017, 614 applications were lodged at the Registry. 598 of the applications represented standard claims (claims for less than $750,000 excluding GST) and the remaining 16 applications were complex claims (claims for more than $750,000 excluding GST).

Since BCIP Act amendments commenced on 15 December 2014, the Registry has processed and assessed adjudication applications as per the ‘Adjudicator Grading and Referral Policy 2015’ to determine a suitable adjudicator to refer the application to. Once referred to an adjudicator, the adjudicator is required to complete forms relating to conflict of interest, rate agreement, delivery of application, and if applicable, agent nomination, before the Registry will confirm the referral.

The Registry has no further involvement with the progression of an application until the adjudicator makes a decision.

Adjudication decisions

The Registry relies upon the cooperation of adjudicators in providing it with critical information so as to enable the monitoring of adjudicators and publishing of key statistics and all adjudication decisions.

Following the adjudicator’s release of the decision to the claimant and respondent, the adjudicator is requested to notify the Registry and to provide the Registry with a copy of the decision. The Registry then publishes the decision on the QBCC’s website.

The average time for a standard claim, from lodgement of application to a decision being made, is 19 days.

The average time for a complex claim, from lodgement of application to a decision being made, is 71 days.

Adjudication fees

The Registry imposes a fee for lodging an adjudication application which operates on a sliding scale. The fees range from $53.55 for payment claims that are $10,000 or less (excluding GST) to 0.07 per cent of the claimed amount for claims higher than $1 million (but not more than $5,356.15).

The Registry has developed a schedule of recommended reasonable fees for both standard and complex claims to provide guidance to adjudicators. In the 2016-2017 year, fees for adjudication (that is, lodgement fees plus adjudicators fees) totalled $2,819,959. The maximum total fee for adjudication was $580,175 and the minimum total fee was $52. The average fee for adjudication was $9,400. Fees for adjudicators are paid directly to them by the parties involved.

Table 21: Adjudication fee statistics 2016-2017

Average Fees Average fee as a percentage of claim

Range of Claims YTD Total Respondent Claimant Total Respondent Claimant

$0 - $4,999.99 40 $648 $412 $183 40.76% 67.50% 32.50%

$5,000 - $9,999.99 33 $953 $627 $273 11.60% 69.70% 30.30%

$10,000 - $24,999.99 63 $1,575 $951 $467 7.91% 66.51% 33.49%

$25,000 - $39,999.99 29 $3,068 $2,220 $688 8.76% 70.34% 29.66%

$40,000 - $99,999.99 46 $5,225 $2,864 $2,114 7.08% 56.85% 43.15%

$100,000 - $249,999.99

35 $7,915 $4,909 $2,634 4.82% 64.14% 35.86%

$250,000 - $499,999.99

21 $14,717 $10,063 $4,175 3.58% 71.67% 28.33%

$500,000 - $749,999.99

15 $15,784 $11,590 $3,607 2.30% 68.67% 31.33%

> $750,000 18 $83,953 $39,493 $41,996 2.06% 48.06% 51.94%

Adjudicator qualification course

In 2016-2017, 24 people applied to undertake training wishing to become registered as an adjudicator under the BCIP Act. Nineteen people have successfully completed the course.

INTERNAL REVIEW The QBCC offers a free, independent internal review service to reduce the number of administrative reviews made through the Queensland Civil and Administrative Tribunal (QCAT) in accordance with the QBCC Act. Examples of the types of reviewable decisions include:

to issue or not to issue a direction to rectify and/or complete work that rectification/completion work is or is not of a satisfactory standard the scope of works for an insurance claim to disallow part of an insurance claim or a whole insurance claim that a certifier has not engaged in unsatisfactory conduct or professional misconduct to suspend or cancel a licence.

During 2016-2017, the QBCC opened 639 internal review cases. 748 internal review cases were closed during the reporting period. The QBCC closed more cases than it opened as a result of processing cases from previous financial years.

As a result of internal reviews completed during 2016-2017: 395 (71.3 per cent) original decisions were upheld 107 (19.3 per cent) original decisions were overturned 52 (9.4 per cent) original decisions were varied.

There were 219 matters that the QBCC was unable to assist with because: 50 of those matters were outside jurisdiction, as the applications did not relate to a

‘reviewable decision’ or the applicant had also applied to QCAT for external review in relation to 27 original decisions, the applications for review were not accepted as those

applications were made more than 28 days after the original decision to which they related and the QBCC decided not to extend the time for the applicant to make the application

in relation to 39 of the original decisions purportedly under review, the decision had either not yet been made or was withdrawn by the original decision-maker before an internal review decision was made

applications in relation to 103 decisions were withdrawn.

As at 30 June 2017, 75 cases remained open.

On average, it took 77 days to process an internal review case. The QBCC reviewed decisions within 28 calendar days 25 per cent of the time.

SERVICE TRADES Service Trades Council

The Service Trades Council (STC) is an independent statutory authority created to confer on policy development and implementation for the service trades, and to provide advice about the industry to the Minister and the QBCC Commissioner. The STC was established under the Plumbing and Drainage Act 2002 (PDA) and was formally announced on 1 July 2016 by the Minister for Housing and Public Works, and Minister for Sport, the Honourable Mick de Brenni MP. It held its inaugural meeting on 4 August 2016 and is an important part of the QBCC. The STC will strengthen Queensland’s plumbing, drainage, air-conditioning, fire protection and mechanical services industries, including the licensing of tradespeople and investigating complaints, which are under the purview of the QBCC.

Plumber and drainer licensing

The QBCC administers Queensland’s licensing system for plumbers and drainers. As of 30 June 2017, there were 16,4821 individuals holding open, provisional or restricted plumber and drainer licences in Queensland. This number includes endorsements. In 2016-2017, the following licensing activities were recorded:

new licence applications received – 1,162 new applications processed – 1,162 restricted licence applications assessed and approved – 85 licence renewals – 4,442.

Plumbing complaints, investigations and disciplinary actions

As the State’s plumbing and drainage regulator, the QBCC investigates complaints which relate to licensing and performance of work under the PDA. The QBCC also investigates non-compliance in terms of unlicensed work and advertising by an unlicensed person.

In 2016-2017, the QBCC received 205 new complaints, and closed 116. Disciplinary action included: 30 disciplinary orders issued to licensees, amounting

to $67,656 156 penalty infringement notices, amounting to

$179,959] two reprimands issued to licensees.

The QBCC adopts a two-pronged approach to ensure compliance with applicable laws. We check that licensees perform work in accordance with the law to prevent defective work and unnecessary cost, worry and inconvenience both to themselves and the community, and undertake regular unannounced inspections of building sites across Queensland to eradicate unlicensed work.

1 Number includes plumbers and drainers holding occupational plumbing/drainage licences under the PDA who may also hold plumbing/drainage contractor licences under the QBCC Act.

Working with other regulators

The QBCC announced on 6 July 2016 that together with the Electrical Safety Office (ESO), 35 Brisbane and Sunshine Coast construction sites were audited for plumbing, drainage and electrical safety. Checks were conducted of 400 licensees, with the QBCC issuing more than $2,300 in fines. The collaboration is the result of a stronger working relationship between the QBCC and the ESO, to achieve positive impacts on compliance levels in the construction industry.

Compliance activity throughout 2016-2017 included: licence checks completed through compliance operations: 553 on-site licence checks completed through routine compliance activities: 327 desktop licence checks completed through routine compliance activities: 226.

Plumbing investigators conducted licence checks at both commercial and domestic construction sites in 2016-2017. Plumbing investigators visited 640 sites, in addition to conducting desktop licence checks.

In 2016-2017, as the QBCC conducted audits on hydrant and sprinkler systems of large-scale commercial buildings, QBCC investigators found suspected cases of unlicensed plumbing, drainage or fire protection work and are making further enquiries.

Proactive compliance activities are also an opportunity for on-site licensees of all trades to learn more about the stringent licensing requirements of plumbing, drainage and fire protection work. Plumbing and drainage work in Queensland, including fire protection work, must be carried out by a licensed person.

Notifiable Works – Form 4

The QBCC seeks to ensure high standards are maintained in plumbing and drainage work. For some types of work, QBCC-licensed plumbers must lodge details about the work through a Form 4 – Notifiable Work to the QBCC. The QBCC regularly conducts compliance checks on notifiable works and the accompanying paperwork.

In 2016-2017, the QBCC’s audit program focussed on the hot water industry, as Form 4s must be lodged for all installations and replacements of hot water heaters in existing buildings. Licensees who have been found to have poor compliance with the notifiable work laws are also subject to audits.

Notifiable work compliance activity during 2016-2017 included: 555 audits conducted 75,368 Form 4s lodged.

“I have been glad to work with QBCC to raise female participation within the construction industry as well as to ensure that plumbers continue to get an improved and specialised service from their regulator.”

Penny CornahChair, Service Trades CouncilandExecutive Director,Master Plumbers’ Association of Queensland

Pool safety

Swimming pool barriers that comply with the pool safety standard help prevent the incidences of drowning of children under five. All pools associated with residential uses such as houses, townhouses, unit complexes, hotels, motels, backpacker accommodation and caravan and mobile home parks must be registered and have a barrier compliant with the pool safety standard. Sale or lease of a property also triggers a requirement for a pool safety certificate, issued by a licensed pool safety inspector (PSI).

The QBCC maintains a register of regulated pools and pool safety inspectors. As at 30 June 2017 there were 364,496 pools on the pool register, an increase of three per cent from the previous year.

The QBCC also investigates complaints and takes disciplinary actions against PSIs, approves continuing professional development (CDP) activities and allocates CDP points for PSIs.

As at 30 June 2017 there were 697 PSIs licensed by the QBCC.

Table 22: Pool safety inspector licences 2016-2017

New licences issued 128Licences renewed 569Total licensees as at 30 June 2017 697

In 2016-2017, 53 complaints were received regarding the conduct of PSIs and in the same period 81 complaints were finalised. In 28 instances it was found that there were no grounds for disciplinary action. For those cases where grounds were established, the following disciplinary actions were taken during 2016-2017:

50 monetary penalties three reprimands two issued with demerit points (in addition to monetary penalties).

Eight PSIs sought review of the disciplinary action decision by the QBCC’s Internal Review Unit.

Pool owner compliance and enforcement

The QBCC monitors and enforces the requirement for pool owners to obtain certificates and refers unsafe pools to local governments, who are required to inspect and may take enforcement action.

As at 30 June 2017, 35,490 pool safety certificates were issued in the reporting period which included 28,954 for non-shared pools and 6,536 for shared pools. The QBCC referred 456 cases to different local governments in 2016-2017.

Immersion incident reporting

The QBCC received reports periodically of immersion incidents involving young children during the reporting period. The data in these reports can be used for assessing the efficacy of the pool safety laws. These reports are provided by Queensland Health, following notification by health professionals, including the Queensland Ambulance Service. Immersion incident reports are also provided to the relevant local government, which is required to inspect the site of the immersion. If the local government inspection raises any concern about the pool fence at the site of the immersion, the local government generally refers that to the QBCC for action, and the QBCC will follow up with the relevant PSI. In 2016-2017, the QBCC received 89 reports of immersion incidents.

EDUCATION AND ENGAGEMENT

In 2016-2017, the QBCC continued engaging in education and awareness activities. These included: launching the STC’s newsletter, ‘Pipeline’, which provides the service trades industry an

update on what is happening in the industry and what the STC is working on activities at the Master Plumbers’ Association of Queensland (MPAQ) PIPE events across the

State other industry engagements and presentations coordinated by the MPAQ supporting the Housing Industry Association’s events supporting Queensland Master Builders Association’s roadshows providing education services to TAFEs and TAFE SkillsTech holding discussions with plumbers and gas-fitters on licensing requirements presentations to major contractors at the Service Trades Queensland colleges across the

State working with various regional councils and other agencies on the establishment of the STC presentations to members of the National Fire Industry Association discussions with the Electrical Safety Office on how to better protect the community discussions with the Gold Coast 2018 Commonwealth Games Corporation to ensure

contractors working on facilities are appropriately licensed educational blog posts on the QBCC website including reminders about renovating

prefabricated pools, and waterproofing requirements for doorways to decks and balconies hosting the biannual Plumbing Inspectors seminars working with the Legionella Management Advisory Group to establish and provide information

to industry distributing information on changes to legislation around cardiopulmonary resuscitation (CPR)

Pool Safety signage and smoke alarms, through social media posts and emails

supporting the Department of Housing and Public Works’ Building Plan Roadshow

delivering continuing professional development presentations to PSIs across the State in July, November and December 2016

providing awareness and assistance as a result of Cyclone Debbie through the Building and Tradie Assistance Register (6 – 12 April 2017)o 796 tradies registeredo 448 building certifiers registered

providing information on reforms related to the Queensland Home Warranty Scheme.

Educating and engaging the community

To increase our focus on educating and engaging our customers and the community, the QBCC launched its Education and Engagement team in April 2017. In June 2017, the QBCC embarked on its inaugural Tradie Tour covering 10 locations across Queensland. Tradie Tours are talks focussing on providing technical information to tradespeople and contractors. The inaugural tour focussed on waterproofing and tiling. More talks will be organised and held in the future.

Management and AccountabilityThis section provides an overview of how the QBCC manages its most important assets – its staff – and the various governance structures in place.

Workforce profile

As at 30 June 2017, the QBCC employed 402.74 FTE (full-time equivalent) staff across professional, technical and administrative roles against a target of 406 FTE, with 67 per cent of our staff providing frontline services.

Table 23: Workplace profile as at 30 June 2017

EEO1 Target Groups 2012-2013

2013-2014

2014-2015

2015-2016

2016-2017

Women 174 193 221 225 235Aboriginal & Torres Strait Islander

6 6 6 6 5

People with a disability 27 23 22 20 16Non-English speaking background

40 36 35 39 32

1 Equal Employment Opportunity (EEO)

Table 24: Workforce diversity as at 30 June 2017 (based on substantive position)

Level Male Female Total EEO Target groups

Administrative A01-A03 25 59 84 14Administrative A04-A05 51 121 172 24Middle Management A06-A08 107 49 156 37Executive Management SO-SES

6 6 12 1

% of total staff 44.57% 55.43% 424 17.92%

Attracting and retaining our workforce

In 2016-2017, the QBCC continued its commitment to attract and retain a skilled and capable workforce by:

having all employees undergo performance planning and personal development through developing individual business plans

encouraging staff to use QBCC’s learning and development system to upgrade their skills and record their learning achievements, including rolling out the 7 Habits of Highly Effective People Foundations to staff

developing and implementing a formal talent management framework for future leaders and identifying emerging leaders for the organisation

having our Executive Leadership Team complete a Leadership Onboarding Course in August 2016

making financial support for further study and professional development available developing strategies to promote diversity and innovation in the organisation. This includes

launching the QBCC’s Respect, Equity, Diversity and Inclusion (REDI) Squad in May 2017, which supports staff and provides advice to QBCC’s leadership team and incorporates diversity and inclusion throughout the organisation.

Helping staff achieve work, life and family balance

Staff at the QBCC are encouraged to have a balance between work and family responsibilities. To do so, a range of options are available such as variable working hours and part-time opportunities.

Keeping our staff safe and healthy

The QBCC is committed to ensuring the safety and wellbeing of its staff, contractors and visitors. To demonstrate our commitment to health and safety in 2016-2017, the QBCC ensured that:

the Work Health and Safety Committee was committed to adequately training all members

Work Health and Safety issues were recorded, investigated and actioned appropriately

staff completed Workplace Bullying and Harassment training sessions

Toolbox Talks covering a variety of short safety topics were held

risk management activities were implemented, including health and safety hazard inspections across all office locations

adequate first aid officers were available in all office locations each office location had adequately trained emergency control members staff had access to rehabilitation for work and non-work related injuries or illnesses staff had access to the Employee Assistance Program which provides confidential counselling

and wellbeing support to all employees and their immediate family members flu vaccinations and hepatitis injections were made available to QBCC staff staff had access to variable working hours.

In 2016-2017, the QBCC also conducted an audit of the effectiveness of the occupational health and safety management system, and has identified a number of opportunities to improve its performance in this area. Steps have been taken to ensure these opportunities are implemented in the QBCC.

Performance management system and staff recognition

The QBCC maintains a performance management system to ensure the achievement of organisational strategies, unit business plans and performance outcomes of work teams and individual employees. Performance is reviewed on a regular basis.

Valuing our staff

In 2016-2017, the QBCC embarked on its Employee Value Proposition project. It seeks to ensure that the QBCC remains a contemporary and high-performing organisation where its policies and human resources frameworks are kept up-to-date, and staff expectations are met.

As part of this project, the following HR policies and procedures, in consultation with staff, were reviewed: Leave Flexible Work Social Media Hours of duty Study and Research Assistance

Scheme Rehabilitation and Reasonable

Adjustment Work Health and Safety.

Professional development and career paths

The QBCC is committed to encouraging lifelong learning. This is demonstrated through its Study and Research Assistance Scheme (SARAS). It provides support for QBCC employees seeking to gain qualifications to support their work and careers.

Through SARAS, the QBCC supports employees who wish to undertake degree or doctorate programs, professional qualifications or other nationally approved vocational qualifications that are related to their area of work. Individual modules must be credit-bearing, and lead to a full qualification.

Employees who are required to complete compulsory professional development, including lawyers, accountants and certifiers, are also given support in their continued professional development.

Corporate social responsibilities

The QBCC recognises its corporate social responsibilities associated with reservists by being a supportive employer with the Defence Reserves Support Council (DRSC). The DRSC promotes the benefits of the Army and Defence Force Reserve Service. Since the QBCC became a supportive employer with the DRSC, the QBCC has supported a total of four employees to undertake reserve service. This included three employees in the 2015-2016 period, and one in the 2016-2017 period.

Industrial and employee relations

The QBCC has an ongoing positive relationship with the Together Union. Agency Consultative Committee meetings are held every six weeks and attended by Together Union and the QBCC’s management representatives.

The QBCC also reviewed all Human Resources policies to reflect current industrial instruments and consistency with the Industrial Relations Act 2016.

Early retirement, redundancy and retrenchment

During the period, two employees received redundancy packages at a cost of $88,034. Employees who did not accept an offer of a redundancy were offered case management for a set period of time, where reasonable attempts were made to find alternative employment placements.

Corporate Governance

Role and responsibilities of the Board

The Board consists of seven independent, non-executive members who were appointed by the Governor-in-Council on 1 December 2016 under the QBCC Act for a three-year term. The appointments for the previous Board members expired on 30 November 2016.

At the highest level of governance, the Board carries out its duties in accordance with: the Queensland Building and Construction Commission Act 1991 the Queensland Building and Construction Board Charter the Queensland Cabinet Handbook the highest levels of ethics and corporate governance.

Under Section 11 of the QBCC Act, the Board is responsible for the following functions: deciding the strategies and the operational, administrative and financial policies to be

followed by the QBCC ensuring the QBCC performs its functions and exercises its powers in a proper, effective

and efficient way making and reviewing policies governing the administration of the QBCC Act providing guidance and leadership to the Commissioner providing guidance and leadership to the Service Trades Council, other than in relation to

its function of conferring on national policy development and implementation for the trade under the Plumbing and Drainage Act 2002

advising the Minister on issues affecting the building industry, consumers, the administration of the QBCC Act and the administration of the QBCC

advising the Minister about unfair and unconscionable trading practices affecting the security of payments to contractors and subcontractors

consulting with the building industry and its consumers and advancing their interests, consistent with the objects of the QBCC Act.

Board meetings

Ordinary meetings of the Board are scheduled monthly. Recognising the need to be flexible and adapt to changing environments and circumstances, the Board is able to consider routine matters out of session by flying minute or by way of an extraordinary Board meeting where the matter is complex or requires fulsome discussion.

A summary of attendance of Board members at ordinary and extraordinary Board meetings is set out in the table on the next page.

Committee meetings

To facilitate its efficient operation, the Board has five committees: Stakeholder Advisory Committee Finance, Audit and Risk Committee Insurance Committee People and Culture Committee Regulatory and Resolution Committee.

Each committee operates to a charter which outlines its purpose, duties, responsibilities, membership, authority and meeting requirements.

Table 25: Board member attendance and remuneration 2016-2017

Queensland Building and Construction Board

Act or instrument Queensland Building and Construction Commission Act 1991

Functions Governing body of the Queensland Building and Construction Commission

Achievements endorsed and supported internal redesign efforts to achieve meaningful improvements in service delivery and culture, including the functional realignment of the QBCC

provided oversight of the performance and operations of the QBCC.Financial reporting

Transactions of the entity are accounted for in the financial statements

Remuneration

Position Name Meetings/sessions attendance

Approved annual, sessional or daily fee1

Approved sub-committee fees if applicable

Actual fees received2

Chair R. L. (Dick) Williams

14 $50,000 pa N/A $32,000

Deputy Chair Jennifer Robertson*

18 $25,000 pa N/A $27,000

Member Lesley Anderson 10 $25,000 pa N/A $16,000

Member Leeanne Bond 8 $25,000 pa N/A $16,000

Member Michelle James 7 $25,000 pa N/A $16,000

Member Brett Schimming 9 $25,000 pa N/A $16,000

Member Robert Schwarten

8 $25,000 pa N/A $16,000

Former Chair Phil Kesby 13 $50,000 pa N/A $24,000

Former Member Chris Cunnington 6 $25,000 pa N/A $11,000

Former Member Robin Fardoulys 9 $25,000 pa N/A $11,000

Former Member Rob Hutchinson 7 $25,000 pa N/A $11,000

Former Member Martin Lee 6 $25,000 pa N/A $11,000

Former Member Len Scanlan 8 $25,000 pa N/A $11,000

No. scheduled meetings/sessions

30

Total out of pocket expenses

$95,869 in on-costs including travel, professional development and associated expenses

* Jennifer Robertson was a member of the former Board and is a member of the current Board.1 Approved fees do not include superannuation amounts.2 Actual fees include superannuation amounts.

Stakeholder Advisory Committee

The Stakeholder Advisory Committee was established to enhance the operational efficiency of the QBCC by obtaining stakeholder feedback and making recommendations to the Board so that feedback can be addressed in a timely and appropriate manner. The committee comprises Robert Schwarten (Committee Chair), Leeanne Bond, and R. L. (Dick) Williams, and over 20 key external stakeholders. The committee fulfils the following functions:

providing a forum where views about the conduct of operational matters can be aired, examined, debated and recommendations developed

encouraging stakeholder feedback, whether negative or positive, to allow for a timely organisational response that respects confidentiality and addresses the issue to the satisfaction of the committee

identifying and developing a clear channel of communication that offers committee members the opportunity to bring forward issues to relevant officers of the QBCC in-between meeting dates

welcoming new ideas and initiatives that will enhance the operational efficiency of the QBCC and strengthen the service delivery of the organisation.

In 2016-2017, the committee held its inaugural meeting in June 2017.

Finance, Audit and Risk Committee

The Finance, Audit and Risk Committee provides independent comment, advice and counsel to the Board on the suitability of the QBCC’s accountability and control framework, including audit and audit-related findings, financial planning and reporting, and the risk management framework and associated policies. The committee comprises Lesley Anderson (Committee Chair), Jennifer Robertson, Brett Schimming and R. L. (Dick) Williams. The committee observed the terms of its charter and had due regard to Queensland Treasury’s Audit Committee Guidelines. The committee’s core duties are to:

provide independent advice to the Board on the adequacy, timeliness and reliability of the QBCC’s operations and systems, including audit planning processes, corporate governance, internal audit, and compliance with legislation and statutory obligations, and ethical conduct and probity

consider matters related to the QBCC’s financial affairs review and evaluate the QBCC’s risk management framework and procedures, including

contingency planning.

In 2016-2017, the committee met five times and conducted the following activities: reviewed and monitored the QBCC’s internal, quality assurance and external audit activities reviewed and monitored the monthly financial results and variations in the budget ensured the financial report was completed within legislated timeframes reviewed and monitored the preparation of the 2017-2018 annual budget.

Insurance Committee

The Insurance Committee provides advice to the Board on the performance and issues relating to the Home Warranty insurance scheme (Scheme). The committee is made up of Leeanne Bond (Committee Chair), Lesley Anderson and R. L. (Dick) Williams. The committee’s duties and responsibilities include:

monitoring and reporting to the Board on the performance of the Scheme reviewing the Scheme in the context of the economic and environmental climate conditions ensuring substantial compliance with the Australian Prudential Regulation Authority

standards in accordance with the QBCC’s Risk Appetite Statement ensuring that the QBCC is effective in responding to insolvency events in the domestic

building sector monitoring the QBCC’s claims administration to ensure that efficient results are being

achieved monitoring underwriting principles to make sure the Scheme achieves sound results collaborating with re-insurers in the performance of the Scheme and monitoring re-

insurance agreements

monitoring and reporting to the Board with regards to the actuarial assessment of the Scheme on any action required to ensure that the Scheme remains viable and effective.

The committee met four times in 2016-2017.

People and Culture Committee

The People and Culture Committee ensures that the QBCC establishes appropriate people and culture strategies and policies consistent with business requirements. The committee also embeds a culture of accountability, participation, customers and community, creativity, delivering value and safety. The committee comprises Michelle James (Committee Chair), Brett Schimming, and R. L. (Dick) Williams. The committee is charged with advisory and decision-making functions and duties in the following areas:

nominations and appointments for Board and senior leadership roles remuneration and evaluation succession plans organisation structure organisation change.

In 2016-2017, the committee met four times.

Regulatory and Resolution Committee

The Regulatory and Resolution Committee supports the Board by overseeing and advising on the QBCC’s licensing regulatory framework and systems. The committee is made up of Jennifer Robertson (Committee Chair), Michelle James, Robert Schwarten, and R. L. (Dick) Williams. The committee is responsible for providing support to the Board by overseeing and providing advice on issues relating to:

ensuring that the licensing regulatory framework continues to meet the needs of the industry and practices in the training industry

ensuring that the licensing regulatory framework adds value to the building industry and continues to protect consumers and industry

ensuring that appropriate resolution systems are in place to handle disputes fairly and equitably

ensuring that appropriate mechanisms are in place to educate contractors on their legal rights and responsibilities

providing advice to the Board on the dispute resolution, compliance mechanisms, contractual and security of payment issues.

In 2016-2017, the committee met four times.

Service Trades Council

The STC is made up of members appointed by the Governor-in-Council for a four-year term. The main purpose of the STC is to act as a voice for the service trades industry, and also to provide advice about the industry to the Minister, and the QBCC Commissioner.

Under Section 6 of the PDA, the STC has the following functions: conferring on national policy development and implementation for the trade2 reporting to the Minister on any issue relating to the trade2 the Minister refers to it or any

issue relating to the trade2 the STC considers the Minister should know about making recommendations to the QBCC Commissioner about the performance of the

Commissioner’s functions under the PDA establishing a panel of the STC to assist the QBCC Commissioner to effectively and

efficiently perform the Commissioner’s functions as relevant to the STC establishing other panels to assist the STC to effectively and efficiently perform its functions reviewing decisions of the QBCC Commissioner performing other functions relating to the trade2 given to the STC under an Act.

2 The term “trade”, as defined in the PDA, means the trade of plumbing and draining.

Table 26: Service Trades Council member attendance and remuneration 2016-2017

Service Trades Council

Act or instrument Plumbing and Drainage Act 2002

Functions Advisory body

Achievements establishing a Complex Licensing Panel to review and make recommendations about complex licence applications, including applications from overseas-trained practitioners

implementing a Regional Outreach Program, involving holding all regular meetings from October 2016 to June 2017 in regional locations, accompanied by an industry forum to allow licensees and contractors to get updates on important industry matters

endorsing the reinstatement of a regular newsletter, published by the QBCC, for licensees in the plumbing, drainage and fire protection industries

acting as the internal review mechanism for licensees who have received disciplinary action under the Plumbing and Drainage Act 2002

reporting to the Minister for Housing and Public Works and Minister for Sport, and making recommendations to the Commissioner of the QBCC about matters relevant to the trade.

Financial reporting

Transactions of the entity are accounted for in the financial statements

Remuneration

Position Name Meetings/sessions attendance

Approved annual, sessional or daily fee

Approved sub-committee fees if applicable

Actual fees received*

Chair Penny Cornah 8 $390 N/A $0

Deputy Chair Janet Cumming 8 N/A N/A $0

Deputy member William Watson 1 $300 N/A $0

Member Sharon Simmers 6 N/A N/A $0

Deputy member Christopher McKenzie 2

N/A N/A $0

Deputy member Greg Jackson 1 N/A N/A $0

Member Graham Mackrill 7 $300 N/A $0

Member Linda Bradley 7 N/A N/A $0

Member Andrew Hickman 6 $300 N/A $0

Deputy member Wayne Smith 2 $300 N/A $0

Member Catherine McCahon 8

N/A N/A $0

Deputy member Lindsay Walker 1 N/A N/A $0

Member Bradley Hodgkinson 8

N/A N/A $0

Deputy member Allan Hazell 1 N/A N/A $0

Member Gary O’Halloran 3 $300 N/A $0

Deputy member Michael Wiech 4 $300 N/A $0

Member Ray Smith 6 N/A N/A $0

Deputy member Eddie Denman 3 N/A N/A $0

Deputy member Stephen Jennison 1

N/A N/A $0

Deputy member Tracy Barkham 1 $300 N/A $0

Member Esther Blest 8 N/A N/A $0

No. scheduled meetings/sessions

8

Total out of pocket expenses

$0

* Fees have not been paid as some organisations do not let individual employees receive benefits, including remunerations, for being on boards, and have requested that fees be paid directly to the organisation. The Department of Housing and Public Works is considering these issues.

Senior Leadership Team

Led by the Commissioner, the QBCC’s Senior Leadership Team is responsible for implementing our strategy and the day-to-day operations of the QBCC.

The responsibilities of the Senior Leadership Team include: undertaking strategic planning in conjunction with the Board overall management of the QBCC ensuring the QBCC performs its functions and exercises its powers in a proper, effective

and efficient way.

The Senior Leadership Team met regularly in 2016-2017 to discuss and approve a range of strategic and operational matters with the purpose of achieving the objectives set out in our strategic and business plans.

Executive remuneration has been determined in accordance with the level of responsibility and accountability of each executive and to ensure that highly skilled and experienced executives have been attracted and retained to these positions. Performance agreements are in place for all executives to ensure a high-performing Senior Leadership Team and QBCC.

Please see Note F1 on page 121.

Queensland Building and Construction Product Committee

The Queensland Building and Construction Product Committee was established by the QBCC with the aim of protecting home owners and industry members from non-compliant3 and non-conforming4 products. The committee is comprised of the QBCC, the Queensland Office of Fair Trading, Queensland Electrical Safety Office, the Department of Natural Resources and Mines, the Queensland Fire and Emergency Services, the Australian Competition and Consumer Commission, the Department of Housing and Public Works, and Workplace Health and Safety Queensland.

The committee met five times in 2016-2017 and discussed a range of issues that considered non-compliant and non-conforming building products.

Fire Protection Working Group

The Fire Protection Working Group (FPWG) is a consultative group established to provide an opportunity for collaboration across the fire protection industry on issues affecting the industry. The FPWG provides feedback to the QBCC and the Service Trades Council on issues relating to policy and legislative reform, licensing, regulatory compliance, consumer education and awareness, contractor education and training, and the performance of the QBCC in undertaking its administrative and regulatory functions.

Membership of the FPWG includes representatives of the QBCC, the Australian Institute of Building Surveyors, Master Plumbers’ Association of Queensland, the National Fire Industry Association, Queensland Fire and Emergency Services, the Insurance Council of Australia, the Fire Protection Association of Australia, the Association of Wall and Ceiling Industries and the Plumbers Union Queensland.

3 Non-compliant building products and materials are those that are used in situations where they do not comply with the requirements of the National Construction Code (NCC).4 Non-conforming building products and materials are those that do not meet the required standards for the use in which they are intended. An example of a non-conforming product would be a threaded cyclone rod that does not have the required level of corrosion protection, but is marketed and sold as a “cyclone rod”. A building product can be both non-conforming and non-compliant.

The FPWG met five times in 2016-2017, and discussed a range of issues that included: requirements for completion and submission of forms, including Form 16 and Form 72 standards of work and licensing of fire certifiers commissioning and certifying fire hydrant systems licence class review the proposed Queensland Building Plan QBCC compliance activities in relation to fire protection.

Risk management

The Board (through the Finance, Audit and Risk Committee) is responsible for the oversight of risk by ensuring risks are managed, and internal controls are effective in reducing the impact on the QBCC.

Our Risk Management strategy and framework is compliant with the AS/NZS ISO 31000:2009 Risk Management – Principles and Guidelines. They provide visibility of risks to the Commissioner, the Senior Leadership Team, the Board, and the Finance, Audit and Risk Committee through the:

escalation of high and extreme risks, emerging risks and critical issues management of the risks and issues within QBCC’s Risk Appetite identification of opportunities.

Our risk approach enables the achievement of organisational goals, compliance with relevant legal and regulatory requirements, facilitates risk-based planning and decision making, promotes and supports a risk-focused culture and improves organisational resilience.

We are continually embedding risk into our culture and building capability so that we rapidly adapt and respond to dynamic changes, demands, opportunities and threats. This aims to safeguard the sustainability and reputation of the QBCC.

Acting ethically and responsiblyPublic Sector Ethics Act 1994 and the Code of Conduct

In 2017, the QBCC consulted with staff on a proposal to adopt the Public Service Commission’s Code of Conduct which is used across the Queensland Public Service. This would align the QBCC with whole-of-government requirements. The Minister, the Board, employees and the Together Union are supportive of this approach. The QBCC will continue to progress this initiative.

The QBCC follows the principles and values of the Public Sector Ethics Act 1994 as well as the QBCC’s corporate values. Board members and employees are expected to maintain the highest ethical standards in discharging their responsibilities and duties. The QBCC made the Queensland Ombudsman training, focussing on Public Sector Ethics and Good Decisions under the Public Sector Ethics Act 1994, available to staff in 2016-2017. All QBCC staff undertook the Corrupt Conduct and Public Interest Disclosure Awareness training in 2016.

Ethical standards and disclosures

The QBCC maintains a Conflict of Interest policy that applies to all employees, external contractors and Board members. The purpose of the policy is to raise awareness and provide a consistent framework for the identification, management and reporting of all conflicts of interest and potential conflicts of interest with the QBCC.

The policy details employee obligations and declares perceived or actual conflicts of interest and where and when they can occur. The Commissioner is responsible for managing this policy.

Official misconduct and public interest disclosures

The QBCC maintains a policy that establishes procedures for the effective reporting of official misconduct and the effective administration of public interest disclosures.

The Commissioner has a duty to refer all complaints to the Crime and Corruption Commission (CCC) where the Commissioner suspects official misconduct. The QBCC has no power to deal with matters unless they are referred back to the QBCC from the CCC for action. Outcomes of any investigations are reviewed and monitored.

The QBCC reports immediately to the Public Service Commission on all disclosures received.

All QBCC staff undertook Corrupt Conduct and Public Interest Disclosure Awareness training in 2016.

Compliance and Enforcement Policy 2014

The QBCC continued applying its Compliance and Enforcement Policy 2014 in 2016-2017. The objective of the policy is to promote high compliance with the laws that the QBCC administers. The focus is not on enforcement alone, but rather on a full range of activities and powers to encourage and enforce compliance with the laws the QBCC is responsible for administering.

The QBCC has adopted a risk-based and outcome-focussed approach to compliance enforcement, adhering to a set of principles that drive how compliance and enforcement decisions are made.

To make the best use of resources and to maximise the public benefit, compliance and enforcement activities are targeted to areas of strategic priority, and where there is evidence or likelihood of consumer detriment. A range of other tools are available to the QBCC that may be used as an alternative to prosecution.

Customer Feedback Management Policy

The QBCC continued refining its Customer Feedback Management Policy in 2016-2017. The feedback framework captures and manages service complaints in line with the Queensland Government’s policy under the provisions of the Public Service Act 2008 and the recommendations of the Office of the Queensland Ombudsman.

Feedback from our customers is an integral part of delivering high-quality customer service and provides valuable insight into business improvement opportunities.

The QBCC has adopted an approach to managing negative customer feedback where investigations will be conducted in an unbiased, transparent and accountable manner.

Customer feedback can be lodged via an online form on the ‘Contact Us’ page of the QBCC’s website. Feedback is also accepted via email, social media, face to face, over the phone, facsimile or through mail. Survey response comments are also captured as feedback cases. Staff are encouraged to capture all feedback, including service complaints, compliments and suggestions.

Table 27: Customer feedback statistics over the past three years

2014-2015 2015-2016 2016-2017Percentage increase

over the previous yearSuggestions 58 259 544 110%

Compliments 109 191 275 43.9%

Service complaints 285 749 1,505 101%

The QBCC has made it easy for customers to lodge feedback, and has been focussing on staff education about the value of capturing feedback. The substantial increase in feedback cases reflects the success of the initiative.

Prompt action has been taken in relation to all contacts received. All service complaints were investigated where possible and appropriate steps taken to improve communications and address complainants’ concerns in accordance with the QBCC’s Customer Feedback Management Policy

Service and administrative process complaints

Service and administrative complaints about the conduct of QBCC employees are referred to the Staff Conduct Committee. This committee received 18 complaints of which all were reviewed and two were sent to independent agencies or investigators. The average time to complete an investigation was 46 days with outcomes from the investigations ranging from no allegations being supported to disciplinary action being taken.

Internal and External audits

Internal audit is an independent function within the QBCC to assist the Commissioner in the discharge of responsibilities under the Financial Accountability Act 2009 and to provide an independent review of internal system controls.

Ernst & Young performed the internal audit function for the QBCC in accordance with the 2016-2017 internal audit plan. The Finance, Audit and Risk Committee acted as a forum for internal audit and oversaw its planning, monitoring and reporting processes. This forms part of the governance processes that ensure the QBCC’s internal audit function operates effectively, efficiently and economically. The internal audit is also performed independently of management and authorised auditors. Internal audit has fulfilled its function in accordance with the above requirements to safeguard the QBCC’s integrity in relation to corporate reporting, and has had due regard to the Audit Committee Guidelines.

In 2016-2017, the internal audit plan was approved by management. A total of four internal audit engagements were undertaken, including Procurement & Delegations, Contract & Contractor Management, Program Management Office, IS Roadmap & Infrastructure and a follow-up audit of prior audit recommendations. A further Statement of Work was approved in December 2016 to review the Enterprise Risk Management Framework and the Fraud Framework, as well as conduct a review of assurance processes validating the close out of prior audit recommendations, and the provision of program assurance and support through the establishment of the Portfolio Governance Board, including a framework of governance for the Portfolio Governance Board.

The QBCC’s Quality Assurance Audit unit undertook a total of five audits, involving the auditing of compliance with policies, procedures and delegations. These included audits on Regional Compliance Investigations, the Internal Review function, the Customer Feedback framework and the Right to Information/Information Privacy process.

The Queensland Audit Office is the QBCC’s external auditor under the terms of the Financial Accountability Act 2009.

Prudent investment management

The Finance, Audit and Risk Committee is responsible for monitoring the performance of its fund managers, Queensland Investment Corporation and Queensland Treasury Corporation. The committee monitors performance through advice from the QBCC’s fund managers, QBCC’s Senior Leadership Team and economic information from other relevant sources.

The QBCC’s Investment Policy will be reviewed as required in the light of prevailing trends in the investment market. As a minimum, the policy will be reviewed annually.

The QBCC’s investment powers are limited by the Statutory Bodies Financial Arrangements Act 1982. Accordingly, Queensland Investment Corporation and Queensland Treasury Corporation will also continue to manage the funds.

Right to information and information privacy

The QBCC is committed to providing the community with greater access to information through supporting the proactive disclosure of information unless on balance it is contrary to public interest.

The QBCC also recognises the importance of protecting the personal information of individuals in accordance with the Information Privacy Principles, ensuring the collection of personal information is done fairly and lawfully, and that all reasonable steps are taken to safeguard the information collected in regard to storage, use and disclosure.

The QBCC is committed to following the objects of the Right to Information Act 2009 (RTI Act) and Information Privacy Act 2009 (IP Act), with 89,336 folios being processed from RTI and IP applications, administrative access and government requests in 2016-2017. Approximately 82 per cent of these folios were released in full. These statistics do not include documents released under ‘Administrative Access’ by other operational areas, or under proactively released documents such as fact sheets, media releases and publications.

Chapter 5 of the IP Act provides for an individual to make a complaint about an agency’s breach of the privacy principles within 12 months of the alleged breach. A privacy complaint form is available on the QBCC’s website. One formal privacy complaint was received by the QBCC in the reporting period.

Table 28: RTI and IP applications and reviews received or on hand in 2016-2017

Application type Application No. %

Administrative access 167 44.00

Information Privacy 83 22.00

Right to Information 116 30.50

Consultations from other agencies 4 1.00

Requests from Government agencies relating to law enforcement 8 2.00

Privacy complaints 2 0.50

Total 380 100

Withdrawn 40

Internal reviews RTI & IP 10

External review RTI & IP 15

Finalised No. of pages %

Full access 73,179 82

Partial access 5,222 6

Full exemption 10,935 12

Total 89,336 100

Open data

The QBCC meets its requirements to publish information through the Queensland Government’s Open Data portal at https://data.qld.gov.au. Information published includes:

- Consultancies- Overseas travel- Queensland Language Service Policy.

Information systems and security

In 2016-2017, the QBCC continued to enhance the management and security of its information assets as part of the QBCC Information Service Roadmap. Some of the key initiatives were the implementation of a new mobile device management system for improved security and support of mobile devices. The QBCC also continued working to implement Office 365 and to move towards a cloud environment in the future.

The QBCC conducts regular external security testing of the technology environment and continuously works on improving the resilience of its systems to unexpected events such as natural disasters. The QBCC has processes and systems in place for the ongoing detection of and protection against external security threats to IT services, including virus attacks, hacking, access control breaches and physical environment control failures.

Records management

During the reporting period, the QBCC’s electronic document and records management system (eDRMS) reached the end of vendor support. The QBCC recognised the risks associated with the current eDRMS and has initiated a project to implement a suitable replacement.

https://data.qld.gov.au/

In the reporting period, a review of the QBCC records management policy was also performed and a new policy drafted. The policy articulates at a high level how recordkeeping is implemented across the QBCC with regards to key roles and responsibilities, business systems and delegations. In addition, records management planning and risk monitoring was further enhanced as part of whole-of-organisation business planning and risk reporting practices.

The QBCC’s disposal program was internally suspended in this reporting period while all policies and procedures and process steps, delegations and disposal documentation as well as systems limitations were reviewed. This meant that no formal destruction took place. Only those records regarded as transitory and short-term records were destroyed as they were not subject to formal destruction documentation.

The QBCC continues to sentence QBCC records according to its two specific retention and disposal schedules:

QBCC Retention and Disposal Schedule (QDAN185 Version 2) Building Construction Industry Payments Agency (BCIPA) (QDAN673 Version 1).

Financial Performance

Summary of financial performance

The QBCC returned a surplus of $14.362 million and a balance sheet equity position of $84.464 million during the 2016-2017 financial year.

Total income of $242.612 million was 11.6 per cent higher than 2015-2016. The increase was driven by strong investment performance, particularly relating to QBCC’s investment in the QIC growth fund which reflects favourable global equity market conditions during the year.

Licence revenue was also higher than 2015-2016 due to a higher number of licences, combined with a 3.5 per cent fee increase in accordance with Queensland Government fee indexation.

Total expenditure of $228.250 million was 10.5 per cent higher than 2015-2016. The increase was primarily due to higher claims approved and charged under the Queensland Home Warranty Scheme. Claims approved totaled $45.1 million which was higher than 2015-2016 due to increased defects claims. The allowance for future claims and unexpired risk liability also increased during 2016-2017. These liabilities are assessed by an independent actuary and are impacted by the number of insurance policies issued, historical trends and market rates.

Employee expenses were higher due to modest growth in staff numbers from 394 to 403, along with a wage increase during the year.

The statement of financial position reflects QBCC’s sound financial status with a net asset position of $84.464 million at the end of the financial year. This indicates that the QBCC has an appropriate level of assets to cover all liabilities including future claims costs.

The QBCC financial statements can be found in the PDF version of the Annual Report 2016-2017

Glossary AASB Australian Accounting Standards BoardACCC Australian Competition and Consumer CommissionALP Australian Labor PartyAPRA Australian Prudential Regulatory AuthorityARRs Annual Report Requirements for Queensland Government agenciesASIC Australian Securities and Investments CommissionASX Australian Stock ExchangeATO Australian Tax OfficeBCIP Act Building and Construction Industry Payments Act 2004Board Queensland Building and Construction BoardCCC Crime and Corruption CommissionCPD Continuing Professional DevelopmentCPR Cardiopulmonary ResuscitationDBCA Domestic Building Contracts Act 2000DHPW Department of Housing and Public WorksEDR Early Dispute ResolutioneDRMS Electronic document and records management systemESO Electrical Safety OfficeEEO Equal Employment Opportunity FAA Financial Accountability Act 2009FBT Fringe Benefits TaxFPMS Financial and Performance Management Standard 2009FPWG Fire Protection Working GroupFTE Full-time equivalent GF General Statutory Fund as stipulated by section 25 of the QBCC

ActGST Goods and Services TaxIF Insurance Fund as stipulated by section 26 of the QBCC ActIT Information TechnologyIP Act Information Privacy Act 2009IVR Interactive Response SystemMDT Multi-Disciplinary TeamMFR Minimum Financial RequirementsMPAQ Masters Plumbers’ Association of QueenslandNW Notifiable worksPAS Plumbing Application Service PDA Plumbing and Drainage Act 2002PSI Pool Safety Inspector QBCC Queensland Building and Construction CommissionQBCC Act Queensland Building and Construction Commission Act 1991QBCEO Queensland Building and Construction Employing Office QBSA Queensland Building Services AuthorityQCAT Queensland Civil and Administrative TribunalQIC Queensland Investment CorporationQTC Queensland Treasury CorporationREMS Reinsurance Management StrategyRTI Act Right to Information Act 2009SARAS Study and Research Assistance SchemeSBFAA Statutory Bodies Financial Arrangements Act 1982STC Service Trades CouncilSPER State Penalties Enforcement Registry

Index of TablesTable 1: Customer Satisfaction Success Measures.........................................................................21Table 2: Customer Relationship Management System Success Measures....................................21Table 3: Regulatory Effectiveness and Customer Confidence Success Measures.........................23Table 4: Business Efficiency Gains and Reduction In Cost To Serve Success Measures..............23Table 5: Licensing Success Measures.............................................................................................24Table 6: Dispute Resolution Success Measures..............................................................................24Table 7: Internal Review Success Measures...................................................................................24Table 8: Insurance Success Measures............................................................................................25Table 9: Compliance and Enforcement Success Measures............................................................25Table 10: Payment Dispute Resolution Success Measures............................................................25Table 11: Increased Customer-Focussed and Capable Workforce Success Measures..................26Table 12: Customer Contact Centre statistics over the past five years...........................................27Table 13: QBCC licensees as at 30 June 2017...............................................................................30Table 14: Ten most common building defects in 2016-2017...........................................................33Table 15: Financial Investigations - Activities under MFR policy.....................................................35Table 16: Licensing audits over the past five years.........................................................................37Table 17: Contractual investigations over the past five years..........................................................38Table 18: Demerit points issued over the past five years................................................................39Table 19: Adjudication registry claimed statistics for 2016-2017.....................................................42Table 20: Adjudication registry decision statistics............................................................................42Table 21: Adjudication fee statistics 2016-2017...............................................................................44Table 22: Pool safety inspector licences 2016-2017........................................................................48Table 23: Workplace profile as at 30 June 2017..............................................................................50Table 24: Workforce diversity as at 30 June 2017 (based on substantive position)........................50Table 25: Board member attendance and remuneration 2016-2017...............................................54Table 26: Service Trades Council member attendance and remuneration 2016-2017...................58Table 27: Customer feedback statistics over the past three years..................................................61Table 28: RTI and IP applications and reviews received or on hand in 2016-2017.........................64

Compliance ChecklistSummary of requirement Basis for requirement Annual

report reference

Letter of compliance

A letter of compliance from the accountable officer or statutory body to the relevant Minister/s

ARRs – section 7 4

Accessibility Table of contents Glossary

ARRs – section 9.1 3137

Public availability ARRs – section 9.2 2 Interpreter service statement Queensland Government

Language Services Policy ARRs – section 9.3

2

Copyright notice Copyright Act 1968 ARRs – section 9.4

2

Information Licensing QGEA – Information LicensingARRs – section 9.5

2

General information

Introductory Information ARRs – section 10.1 5 Agency role and main functions ARRs – section 10.2 5 Operating environment ARRs – section 10.3 6,65

Non-financial performance

Government’s objectives for the community ARRs – section 11.1 6 Other whole-of-government plans / specific initiatives

ARRs – section 11.2 N/A

Agency objectives and performance indicators ARRs – section 11.3 25-59 Agency service areas and service standards ARRs – section 11.4 25-59

Financial performance

Summary of financial performance ARRs – section 12.1 77

Governance – management and structure

Organisational structure ARRs – section 13.1 15 Executive management ARRs – section 13.2 18-19 Government bodies (statutory bodies and other

entities)ARRs – section 13.3 65,69

Public Sector Ethics Act 1994 Public Sector Ethics Act 1994ARRs – section 13.4

71

Queensland public service values ARRs – section 13.5 6Governance – risk management and accountability

Risk management ARRs – section 14.1 70 Audit committee ARRs – section 14.2 66 Internal audit ARRs – section 14.3 74 External scrutiny ARRs – section 14.4 N/A Information systems and recordkeeping ARRs – section 14.5 75

Governance – human resources

Workforce planning and performance ARRs – section 15.1 61-63 Early retirement, redundancy and retrenchment Directive No.11/12 Early

Retirement, Redundancy and Retrenchment Directive No.16/16 Early Retirement, Redundancy and Retrenchment (from 20 May 2016) ARRs – section 15.2

63

Open Data Statement advising publication of information ARRs – section 16 75 Consultancies ARRs – section 33.1 75 Overseas travel ARRs – section 33.2 75 Queensland Language Services Policy ARRs – section 33.3 75

Financial statements

Certification of financial statements FAA – section 62FPMS – sections 42, 43 and 50ARRs – section 17.1

133

Independent Auditor’s Report FAA – section 62FPMS – section 50ARRs – section 17.2

134

FAA Financial Accountability Act 2009 FPMS Financial and Performance Management Standard 2009ARRs Annual report requirements for Queensland Government agencies

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