Australia: ” Proactive Auditing” Information asymmetry, where parties to a transaction have different information, is something we all experience.

The Australian Building Codes Board have provided an update on their Building Confidence Report in respect of commercial buildings.  Members and fellow professionals should note that “proactive auditing is imperative to restore public trust. Governments need to be able to detect and regulate inadequate practices”.

Australian Building Codes Board (ABCB) - Videos | Facebook     Melbourne, Australia, city skyline with many buildings under construction against a blue sky with light clouds.

Improving regulatory oversight of the construction of Class 2 to 9 buildings

Evidence suggests it is a problem in the construction industry, particularly in relation to apartment buildings. This is because the eventual owners have no insight into the construction process and must trust that buildings comply with the NCC, relevant legislation and Standards.

The Building Confidence Report (BCR) states that “proactive auditing is imperative to restore public trust. Governments need to be able to detect and regulate inadequate practices”. Auditing and compliance activities help to mitigate the issues caused by information asymmetry by identifying and addressing non-compliance during the design and construction of buildings.

www.abcb.gov.au/Improving-regulatory-oversight-of-the-construction-of-class-2-to-9-buildings

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