Tut 1

Regulation of the Construction Industry

  • Not looking at First Nations Law.
  • Australia was a series of six settlements, evolved into states with local government.
  • In 1901, Australia federated, creating a federal government for defense, taxation, etc.
  • In 1910, ACT and Northern Territory were created.

Australian Constitution and Laws

  • The Australian constitution sets out rules controlled at a state, national or federal, and local level.
  • Trade and commerce is regulated at a state and territory level, where the construction industry sits. Architecture is within the construction industry and is regulated at a state and territory level.
  • Architects Acts are individual to each state and territory but perform the same function.
  • Architects Acts are consumer protection legislation.

Creation of an Act

  • Community express the need for laws.
  • State government drafts a bill, which is introduced to the lower house of parliament.
  • The bill gets read and goes out for community comment.
  • It receives royal assent from the Governor General and is enacted, with a commencement date.
  • The original Architects Acts were written in the 1920s, predate all the building legislation by about 50 years.
  • The purpose of the Architects Act is to control the behavior of architects and the use of the term "architect."

Architects Act

  • The Act creates a body, the registration board, and, gives it power equivalent to the state government.
  • The board members make high-level decisions about direction, compliance, and complaints.
  • The CEO equivalent in the board is the registrar, employed by the board with supporting staff.
  • Registration boards are self-funded government bodies (qongos) that get funds from registration fees.

AACA

  • The boards created AACA to deals with immigration assessments, skills assessments for immigration, mutual recognition, overseas qualification assessment, and pathways to registration.

Body Functions

  • The architects' registration board writes regulations which are detailed rules with the power of the state government.
  • A register is a list of licensed architects; some states/territories also have a register of architectural entities.
  • Registers of practicing individuals and, of non-practicing individuals exist.

Compliance

  • Compliance involves ensuring architects on the register comply with regulations and the Act.
  • The public can complain to the board, but this is not suing; that's a separate common law action.
  • The board reviews complaints; actions vary by state/territory.
  • The board informs the public, that there is a licensing regime, and they should check credentials.

Building Regulations

  • In every state and territory, a legislation regulates building.
  • Building legislation sets up a body (building commission, QBCC, etc.) that writes building regulations.
  • The National Construction Code must be complied with.
  • Registers include domestic builders, gas fitters, electricians, and contractors.
  • They do the same thing, make sure that all the people with licenses comply with the rules.

Home Legislation for Individual Homes

  • There is separate legislation to the building regulations for people's homes.
  • The most important asset is the home for most people and the consequences that could arise from it are terrible.
  • Additional rules exist about contracts, deposits, and defect obligations.
  • Builders must have insurance to cover defects.

Professional Bodies

  • Professional bodies (e.g., Australian Institute of Architects, Association of Consulting Architects, ArchiTeam) provide services to members, advocate, and offer resources.
  • They do not provide licenses; only the architect's registration board provides architecture licenses.

Statutory Law

  • Statutory law includes administrative legislation, acts, and, regulations.
  • Architects have liability under statute.

Liability

  • Liability

Liability under Statute, Contract and Tort

  • Once licensed, an architect's behavior is controlled by the Architects Act, taxation legislation, copyright legislation, and, consumer legislation
  • Liability under contract extends for the life of the contract plus a window of time.
  • The window of time: six to seven years, depending on the state and territory.
  • Architects have a duty of care to provide services and advice to a reasonable standard.
  • Tortious liability: Liability for a wrong causing damage or loss; includes the tort of negligence.
  • The tort of negligence applies to anyone with a license who fails their duty of care.
  • Concurrent wrongdoers: Other parties doing wrong at the same time can be held jointly liable, and liability is apportioned.
  • The boat owner also has a time limit, six years, to file that tortious claim. No matter the architect has retired or not.
  • This diagram that there doesn't apply to West Australia and Queensland, because they have other rules which are

Limitation of Building Actions

  • Legislation limits building actions ten years from when the building could be occupied.
  • However, there are not established rules, if someone is injured, the legislation is silent about whether the architects would be protected.
  • These rules are designed for help insurance industry to bring protection.

Managing Risk as an Architect

  • Use professional indemnity insurance
  • Use correct business structure
  • Need to be up-to-date (CPD)
  • Office in house quality assurance protocols in the office

Professional Indemnity (PI) Insurance

  • PI is a type of liability insurance that provides coverage to professionals. It covers claims made by clients due to alleged negligence, errors, or omissions.
  • The insurer makes an evaluation of how risky you are to them and your will reflect your policy costs will be reflected in there.
  • PI covers legal costs, defense, expenses, and compensation if you are found liable.
  • PI is required in all jurisdictions except ACT and Northern Territory.
  • Jurisdictions also need a certificate of currency to keep the boards happy with the amount one is covered.
  • Employees are covered by their employer's PI insurance.
  • Contractors need to have their own PI insurance.
  • Advise insurers if any circumstances may rise to a claim, the same would need to provide professional advice if needed.
  • When an insurance renewal is required, it's important to advise your insurer's the conditions.
  • Continuous cover is super critical, otherwise you may not be covered.
  • Runoff insurance: Take out insurance for a number of years once you've retired.
  • Pl insurance WON'T cover you for fee disputes
  • For all architects is responsibility to not to let other employees to do hard surgery