Non-compliance can lead to financial and legal damage for Australian construction companies. The following recent cases highlight the importance of compliance in the industry, not only for the business’ bottom line, but for the health and safety of workers.

1 - The Lacrosse Building

The investigation into the Lacrosse building fire in the Docklands area of Victoria revealed that non-compliant external cladding was used in the building’s construction. Fortunately, no one was killed in the 2014 fire, but the case raises concerns about the use of non-compliant building materials.

2 - Vortech and MPM Group

Construction company Vortech subcontracted to a company called MPM group for work on Perth’s new stadium in Burswood. Because of delays and scheduling problems, the project ran into several non-compliance issues, including the number of workers on the job site. Vortech has had to lay off workers and has amassed hundreds of thousands of dollars in debt.

3 - Construction Forestry Mining & Energy Union

In July 2016, a judge issued fines of $180,000 to the Construction Forestry Mining & Energy Union (CFMEU) over a non-compliant work site blockade. The judge denounced the union’s record of non-compliance, which he said had become “notorious.”

4 - Shire of Exmouth

The Corruption and Crime Commission (CCC) found “significant and serious levels of non-compliance” in relation to procurement and tendering processes during its inquiry into several large construction projects. As a result, the Shire of Exmouth was suspended for six months.

5 - Dreamworld

An independent inspector found 12 non-compliance ratings at the Dreamworld amusement park after a fatal accident in 2016.

6 - Iglu Student Accommodation Building

The Queensland Government has denied occupancy permits to the Iglu student accommodation building in Brisbane because of concerns about the installation of the same non-compliant exterior cladding that was found in the Lacrosse building in Victoria.

7 - Perth Children’s Hospital & Perth Stadium

Contract non-compliance has been a source of legal and financial problems for billion-dollar flagship projects like the new Perth Children’s Hospital in Nedlands and the Perth Stadium.

8 - QBCC

Shortly after he became CIO of QBCC in 2015, Ben Ward identified some security vulnerabilities and non-compliance with security standards. By addressing these non-compliance issues proactively, QBCC has not only avoided legal and financial problems, but it has also saved more than $1 million as the company has become more streamlined and efficient.

9 - Bendigo Health

A construction manager was convicted for misappropriating more than $28,000 worth of building materials and equipment belonging to the Bendigo Health Foundation. Barrister Tara Hartnett told the court that “the type of offending was not uncommon within the construction industry.” Compliance to industry standards can help to prevent such situations.

10 - Henley Arch v Lucky Homes & Ors

This case involves non-compliance with copyright law, specifically with architectural plans. A couple went part way through the sales process with Henley and signed a contract. Then they decided they wanted a different facade option and approached Lucky Homes with the Henley plan. Minor adjustments were made to the plan, but Lucky Homes received the payment. In the end, the couple was ordered to pay Henley in compensatory damages.

ISO 9001 Standard

Clearly, non-compliance can have major ramifications for Australian companies. Loss of income, fines, harm to reputation, and loss of clients are all results of non-compliance to industry standards and local and federal law.

The ISO 9001 standard is the international standard for quality management, which has been designed to reduce the room for quality lapses and costly oversights.

Compliance Consultant

You’re busy with the daily demands of your business, and it can be difficult to devote much of your time and resources to compliance. Contact us at Compliance Council to find out about our compliance services and what we can do for you.