Welcome to the seventh edition of Foundations!
Foundations is the Office of Fair Trading's e-newsletter for the home building industry.
In the last edition, our poll asked about the speed of access to the internet among our subscribers. We had over 420 responses, with only around 18% saying internet access was through a slower, narrowband connection. Thanks to everyone who responded, this information will help us plan for future services.
Our question for this edition is directed at sole traders and family-run building business operators. And in particular, we would like to ask a question of your partner - the person working hard behind the scenes to help run your business at home.
Keep sending your questions or comments about this issue of Foundations, contact us at foundations@oft.commerce.nsw.gov.au
Plumber's death a warning to all
Electricity is plumbing's silent killer and plumbers need to be vigilant about safety procedures when working anywhere near water. Four plumbers have lost their lives to electric shock in NSW in recent years, the most recent fatality occurred in March this year at Yennora in Sydney's west.
In this tragedy, electrical work was being carried out at the home at the same time as the plumbing. It appeared that the plumber was attempting to cut the existing water pipe between the house and the ground. While the power circuit fuse had been pulled; the service fuse was still in place. Fair Trading were advised that no bridging straps were found on site.
This terrible loss of life should serve as a sharp reminder to all plumbers that the use of bridging straps when changing water meters or cutting existing water pipes that are or go into the ground is absolutely essential. Every time, every job, no exceptions. Particularly when connecting old metallic water pipes in the ground to new pipes, these unassuming safety devices could literally save your life, or the life of your employee.
There is no reason NOT to use bridging straps - they only take a moment to set up, they don't hinder your work and they are inexpensive to buy from most electrical wholesalers.
Do not gamble with your life, or the life of your employees, by taking electricity lightly.
Always test a water service using a low voltage test meter. If a reading of five volts or more is registered, contact a licensed electrician to assess the electrical system.
For more safety tips, go to the Electrical Safety for Plumbers page on the Fair Trading website, or call the Energy & Utilities Unit on 9895 0722.
Builder pays a high price for ignoring Tribunal
A builder has had their license suspended for failing to meet a money order issued by the Consumer, Trader and Tenancy Tribunal (CTTT).
GAJAC Pty Ltd (license 196569C) of Kellyville NSW was suspended on 16 June after failing to pay $11,550 that was due and payable by 18 May.
The suspension was made possible under new laws that came into effect on 1 April this year.
License holders are encouraged to take Tribunal money orders seriously and should ensure that payment is made or face automatic suspension 28 days after the due date.
Suspensions under this new legislation are not subject to appeal, but can be lifted if the outstanding Tribunal money order is later paid.
For more information, go to the Automatic license suspension page on the Fair Trading website.
When a technically complex and expensive home building dispute is taken to the Consumer, Trader and Tenancy Tribunal (CTTT), part of the process to resolve the matter could involve a Conclave. Given the amount of money often involved and the large number of defective or incomplete works in dispute, it is important to know what a Conclave is and how it operates.
A conclave is an on-site meeting between the experts engaged by both parties to the dispute, in the presence of a Tribunal Member. It gives experts the opportunity to discuss disputed technical items and/or costing in a non-adversarial manner. This helps to clarify the matters in dispute and to reduce, as far as possible, the issues that will be determined at the hearing.
For more information, view or download a copy of the Home Building Conclaves fact sheet from the Consumer, Trader and Tenancy Tribunal website www.cttt.nsw.gov.au
Back to top
Sparks fly over illegal work
Let this serve as a strong warning to any trader who is thinking of breaking the law. If you don't have a licence and you operate in the NSW home building industry, Fair Trading will catch you. It's that simple.
Unlicensed trader George Harellis, who has never held a licence in NSW, was masquerading as an electrician, putting consumers at risk on a daily basis (not to mention himself).
In Parramatta Local Court recently, Mr Harellis was fined over $18,000 for carrying out unlicensed, defective and potentially life-threatening electrical work.
Should Mr Harellis not learn his lesson and continue to break the law, he could face Supreme Court action.
Traders caught operating without a licence can incur fines of up to $22,000 for an individual or up to $110,000 for a company.
Back to top
High front guttering - the story so far
For nearly ten years, ongoing claims have been made that the installation methods employed by the plumbing industry for high front guttering do not meet current Building Code of Australia requirements.
The following is a summary of what has been happening around this issue.
The first point to be made is that less than 1% of complaints made to the Office of Fair Trading since 2003 relate to the installation of guttering. Furthermore, the major insurance companies who provide insurance for home and contents have not identified gutter installation as a significant issue.
In October 2007 the Master Plumbers Association of NSW put the issue before the Committee for Uniform Procedures for Plumbing and Drainage. The Committee considered the matter but did not see any need to change procedures.
In 2008, Fair Trading convened a meeting with manufacturers, Building Associations, relevant Government agencies and Standards Australia to discuss this issue. The meeting concluded with an agreed position confirming that there was no evidence to support a systemic problem.
The Department of Water and Energy issued a Circular to the plumbing industry to reinforce the need to comply with the NSW Plumbing and Drainage Code of Practice (2006).
With a view to ensuring a high level of compliance with the Australian Standards, a circular was also issued to all local councils and private certifiers.
In January 2009, Fair Trading produced a quick reference guide for NSW building professionals and consumers, reinforcing the need to ensure that gutter systems are designed and installed in accordance with the applicable Australian Standard and the Building Code of Australia.
Fair Trading contacted all local councils in NSW, requesting that Council (if the certifying authority for a building) ensure the guttering system installed meets the relevant Codes and Standards. Additionally, Councils have been invited to provide Fair Trading with the details of any cases where it is believed that property damage has occurred due to inadequate gutters.
The Building Codes Board has recently amended the Building Code of Australia by removing direct reference to the use of slots in high front gutters as an overflow provision. These changes took effect on 1 May 2009.
While Fair Trading has found virtually no evidence to support the claims about a mismatch between installation methods and BCA requirements, it will continue to monitor the issue.
As part of this work, online surveys have been developed and are currently available. Feedback from consumers and traders will assist in determining what action, if any, may be required.
To give us your feedback about high front gutter issues, go to the Consumer and trader research and issues page on the Fair Trading website.
Back to top
The hazards of insulation
The recently introduced Australian Government's Homeowner Insulation Program has led to an increase in demand from consumers for ceiling insulation to be installed in residential property.
While installers are busy keeping up with demand, safety concerns for both installers and home owners/residents have been identified. Anyone involved in the installation of insulation should be aware of the many hazards involved and take steps to protect themselves and homeowners/residents.
There is an increase in the number of installers entering the roof cavity from the roof, rather than through the man hole. Many are working without appropriate fall prevention measures, placing themselves at significant risk of serious injury and/or death from a fall. It is essential that anyone working at heights has appropriate safety mechanisms in place.
Owners/residents are at risk of fire if they have down lights in the ceiling and appropriate safety measures have not been taken to ensure the insulation has been installed correctly. Down light components in the roof reach extremely high temperatures and if insulation material is too close, the risk of fire is very real.
The above represent only two examples of safety concerns. More information is available from WorkCover, in their How to safely install ceiling insulation factsheet. Go the WorkCover website to view or download a copy.
Safety regarding the construction of swimming pools and spas continues to be an important issue in the residential building industry.
The Swimming Pool & Spa Association of NSW Limited (SPASA) has developed a one-day Safety Training Workshop, which focuses on safety issues in the pool and spa industry. The educational workshops are targeted to all employers and employees who build, renovate or service swimming pools or spas. The workshops will help builders better understand the safety issues within the pool and spa industry; the legislation relating to these issues, as well as providing practical guidance regarding compliance.
Topic covered include explosions & implosions; skimmer entrapment; electrical safety; fencing; poisoning; suction entrapment; spa plumbing; regulatory authorities; requirements of standards; electrical design; chemical handling; and resuscitation.
Workshop attendance will earn builders a minimum of 8 CPD points.
For more information about workshop dates or to register interest in attending, contact SPASA on 9747 6644.
Builders insured with Lumley General and CGU Insurance Ltd are reminded that these insurers will be withdrawing from the home warranty market later in 2009. Builders should be making arrangements to change over to another insurer after 30 November (if a Lumley customer) or 30 December (if a CGU customer). To avoid any last minute rush, you are strongly advised to make the move to another insurer as soon as possible.
Keep up-to-date with industry issues by listening to the Builders & Tradies Radio Show from 6:00am to 6:30am, Monday to Friday, on 1224am in Sydney and 100.5fm in Newcastle. Proudly sponsored by Fair Trading.
For more information and to listen to recent shows via podcast, go to the Builders & Tradies radio show website.
