Following the release of its discussion paper in November last year, the independent Developer Review Panel has now released its final report, Setting the Tone: The role of developers in Queensland’s building and construction.
The report continues the State Government’s review into the role of developers, which emerged from a 2020 recommendation of the Parliamentary Inquiry into the Government’s Building Industry Fairness (security of payment) reforms.
After more than 18 months of investigations, the panel has failed to identify any significant or systemic problems with the industry requiring reform.
In the absence of identifying specific issues requiring intervention, the Panel has chosen to focus on the role developers play in setting the ‘tone’ of a project.
The report makes five recommendations and several observations:
Establish an accreditation, disclosure and registration framework for developers, including:
- Requiring the nomination of Persons of Influence (POI) who will be required to meet a ‘fit and proper’ test and minimum education requirements
- The introduction of a code of conduct for developers
- Setting disclosure obligations before developers can enter into a relevant contract, including confirming they have appropriate finance to complete the contract and that their accreditation is current.
- Requiring developers to register each development activity, including property description application number etc
- Implementing a public register of accredited developers and registered development activity
Implement minimum educational requirements for developers.
- The introduction of minimum education and continuing professional development (CPD) requirements for developers, as part of the accreditation framework outlined in Recommendation 1.
Clarify developer responsibilities in relation to non-conforming building products.
- Amend the Queensland Building and Construction Commission Act 1991 (QBCC Act) to remove any doubt that developers are included in the chain of responsibility for non-conforming building products (NCBPs).
Clarify developers are included in fairness in contracting provisions.
- Amend the Queensland Building and Construction Commission Act 1991 (QBCC Act) to remove any doubt that developers are included in fairness in contracting provisions.
Promote the use of digital tools for recording design and constructions information.
- That the State Government implement a robust scheme for capturing building and construction related information in a centralised and accessible digital format.
The report suggests a 12-month implementation period after adoption of legislation to develop a code of conduct (as outlined in recommendation 1) and for developers to undertake relevant training and education (as outlined in recommendation 2).
Following the release of Setting the Tone: The role of developers in Queensland’s building and construction industry, the State Government will decide whether to adopt the recommendations set out within the report. Adopting the recommendations will require legislative amendments which will be subject to a full parliamentary process, (which will include a committee consideration and hearing).
The Property Council has consistently advocated against the proposed reforms on behalf of our members, including pointing out that the data did not indicate there was a clearly defined problem requiring legislative changes.
In the absence of a strong problem requiring intervention, the proposed level of reform is not only misguided, but it will also likely worsen Queensland’s current housing crisis by making it more expensive to deliver the housing needed.
Previous submissions and Advocacy Alerts can be found below:
- Role of Developers in the Building and Construction Industry
- Developer review panel announced – Property Council Australia
- Property Council warns against further regulation – Property Council Australia
- Developer Licensing Review Update – Property Council Australia
- Developer Review Work Plan – Property Council Australia
- Event recap The Queensland Developer Review and You – Property Council Australia
- Developer Review – Property Council Australia
- Review risks additional time and cost delays for housing – Property Council Australia
If you have any further queries, please don’t hesitate to get in touch with the Queensland Advocacy Team via [email protected] or (07) 3225 3005.