Discussion paper: Building Manuals - A Response to the Building Confidence Report

Consistency avoids confusion & assists with computer reading of documents, meta-analysis of data and improves implementation of policies & regulations for improved governance & consumer confidence.

Disagree with the following definition:
Building manual: means a "document" that is a subset of building data relating to a specific building. It acts as a record of, and guide for, decisions about the building’s safe and proper use.
Reason:
The word "document" infers a single paper format which is at risk of being lost, misplaced, and fraud. It is submitted that a building manual should be provided in digital form and stored in the cloud for improved security, trust, and easy access for owners and successive owners in order to properly comply with Rec. 20

It is submitted that it is essential for the dataset to be in digital form with online cloud storage.

Because you need an independent and objective 3rd party who has the requisite training, licence and insurance to provide a trusted service.

No, because it will be verified by the Building Surveyor anyway.

The market will have different solutions for collecting the building data and producing the building manual in order to meet Rec 20. (i.e. technology companies will offer these services to builders and property developers - my company, inndox, is already providing this solution with training, templates & online tools for builders and property developers Australia-wide).

Yes, because otherwise they will not do it - there will be no motivation to create building manuals. Therefore, in my view, this MUST be a condition of obtaining occupational approvals.

It should still be a requirement to have the building manual done before anyone is allowed to occupy the building regardless of there being a permit for progressive occupation.

Incentives such as this (plus the withholding of the occupation certificate) will be necessary to ensure that building manuals get created otherwise there will not be sufficient motivation.

Fines and penalties clog up the courts, increase admin and slows down business - such deterrents have not worked in the past.

It should be sufficient to have compliance met if BOTH a bond is required and occupation certificates are conditional upon an accurate and complete building manual.

None.

No issue - the building manual must be provided upfront.

It is submitted that:
* The first version (at handover) should be digitally recorded as to the date of handover and the content of the handover and be locked so that such data can never be deleted / lost / or tampered with but remain accessible for the life of the building.
* Owners (including agents of owners) should continue to add relevant building information for the life of the building to ensure it is kept well-maintained, compliant and safe for all future occupiers and owners.

It is submitted that building owners must be legally obliged to keep their building manuals updated (like a car logbook) and be directed to the government website for guidance as to what information must be added. The service provider will provide guidance as to how the building manual can be updated throughout the life-cycle. [There should be a government website to provide relevant information to the public so that the service providers can refer the owners to it].

The building manager acts on behalf of the owner and therefore should be legally required to keep the building manual up to date (similar to the requirements for updating a car logbook).

It is submitted that incentives and penalties will be necessary in order for owners to keep their building manuals up-to-date otherwise they will not be bothered to do so.

* High penalties should apply if an owner (or agent of the owner) is found not to update the building manual as a "reasonable" building owner should;
* High penalties should apply if an owner fails to provide an up-to-date building manual to potential purchasers to ensure transparency and enable buyer due diligence;
* Building Insurance will (in time) become conditional upon having an up-to-date & accurate building manual;
* It will become difficult to sell a building without up-to-date building manuals (especially if selling online) similar to if you were selling a car without a logbook.

Service providers can meet the requirements more effectively, efficiently and at less cost than if government or building owners had the responsibility of storage.

The market will get it right - market forces will ensure that only the good service providers will remain in the market. We should learn from UK's mistake of introducing "Home Information Packs" that were paper-based and failed because they were not digital. UK conveyancers are now calling for "digital property logbooks" to speed up the conveyancing process: UK Law Society Gazette dated 15 June 2020.

This is not an issue. When the information is stored in digital format, the data can be updated / converted to the latest technology as required by the service provider (technology company) who has such expertise.

It is submitted that seller disclosure with building manuals should replace the unfair "buyer beware" regime (that serves to protect dishonest sellers) so that the potential buyers can be provided the truth about the quality of the building upfront. Legislating for a building manual prior to entering a contract of sale will reduce the amount of unsafe, non-compliant buildings being sold. Buyers who spend their life-savings on the purchase of a building should have legal protections in place. This is a matter of public policy.

The building owner would need to give consent for specific buyers to view the building manual (to overcome the risk of malicious / unauthorised access to access the data).

Yes, because the lessees are usually responsible for the maintenance costs including essential services and would need to know the requirements upfront in order to budget for it and comply.

* Who pays for the development of the platform for building manuals?
* Who pays for the ongoing upkeep and access to it?
* What legislation needs to be enacted to ensure compliance of the building manual requirement?
* What incentives / deterrents are needed to ensure compliance?
* A special committee may need to be set up for planning and implementation of Rec 20
* How best to educate and bring awareness about the new practice?
* Established service providers should be consulted and supported due to their requisite domain experience, technology and knowledge
* Should insurers require building manuals to be a condition of building insurance?
* Should building manuals also apply to residential (Class 1A) buildings to bring the same benefits and protections to house buyers? (To raise the industry standard for all buildings and avoid confusion).

Our law courts have made it clear that it is the building owner who is ultimately responsible for ensuring that their building is compliant and safe - the onus falls on the owner not the building/ strata / facilities manager. Thus the owner must have legal rights and ownership of the building data and building manual and must have full access rights and full control of that data at all times. The building / strata / facilities manager must provide full access to any updates of the building data so that owners are kept informed of the status. This will improve transparency and help keep managers honest so that they perform in the best interest of the owner and the owner has absolute control to replace any under-performing managers.

All new Class 1-9 buildings should provide building manuals because house owners should not miss out on the benefits that unit owners under Class 2 would receive. The same improved standards should apply so that there is less confusion in the market place.

Explains most problems however some other problems include:
* Incompetent building / strata / facilities managers are allowed to continue unnoticed leading to the risk of litigation / bankruptcy for the owner where there's been a lack of compliance & management of critical safety issues;
* Deliberate cover-ups by real estate agents in order to sell at inflated prices and gain higher commissions without any recourse for the buyer due to the buyer beware regime;
* Real estate agents, conveyancers, insurers can charge higher fees when there is less transparency about the building records.

* Better for insurers to more quickly process claims;
* Can facilitate buyer due diligence and meet the increasing demand for online due diligence if the building manuals are provided digitally.