Building Contract Review Program

What is the BCRP?

The Building Contract Review Program (BCRP) is managed by HBCF and outsourced to authorised service providers. 
 
The program aims to assist new entrants to the building industry, as well as existing small to medium builders without demonstrated experience for proposed projects. The participating builders will have the opportunity to obtain mentored project management experience.
 
A BCRP service provider reviews only the competence of the builder to price and manage a particular  project. Their role is not to ensure compliance with building standards by the participant builders.
 
The BCRP is intended to be a transition phase and builders can apply to have the requirement removed from their eligibility conditions, once they have demonstrated satisfactory competency for that project type. 

BCRP participation for builders 

The BCRP is used where all other relevant financial and non-financial  requirements are satisfactory for insurance eligibility, and where the builder:
  • has never contracted and  completed construction of a new single dwelling or alteration project for a homeowner
  • is proposing to contract a larger or more complex project than the builder’s experience supports, or
  • has never before contracted with a developer and completed a construction of a multi-unit project while working as the key manager within a building business.
The BCRP is also appropriate where the gross margins of the builder are an issue of concern.  The program can assist a builder to adequately price contracts and test actual costs against budget. 
 
What is the cost to the builder?
 
The costs will vary from project to project and provider to provider. Each service provider will be able to give an estimation of the likely costs for a particular project.

BCRP and eligibility conditions

Where BCRP participation is required, it is a condition of a builder's eligibility for each individual project above a certain contract price, usually $50,000 (GST inclusive) or, depending on a builder’s circumstances, more.  It is not a condition for contracts under $50,000.
 
A builder does not have to engage a BCRP service provider until a Certificate of Insurance (CoI) is required for a project. The builder should factor the likely cost of the BCRP participation into preparation of a quote or tender with the homeowner. A CoI for projects subject to BCRP participation is not issued until the BCRP service provider has signed off on Components 1, 2 & 3 of the program (refer below). 

BCRP service provider's role

The role of the BCRP service provider is to:
  • review contract documents for a projectensure that the builder provides a detailed budget which includes a gross margin that is reasonable for the project type, size, value and other project requirements

  • determine a schedule of builder performance reviews, including site inspections, to ensure that the builder's supervision and contract administration is appropriate 

  • make sure the project is running to budget and contracted completion date

  • undertake the reviews and report on the progress or development of the builder's competence relating to specific areas that have been reviewed. A written  report is provided to the scheme agent and a copy to the builder.

Authorised BCRP Service Providers

Blue Visions 
Telephone: 02 8908 9888  Email: bcrp@bluevisions.com.au
(Provides services to across NSW)

Censeo 
Telephone: 1300 030 310  Email: enquiries@censeo.com.au
(Provides services to all NSW)
 
Sergon Building Consultants
Telephone: 1300 735 720  Email: bcrp@sergon.com.au
(Provides services to all NSW)
 
SHAC
Telephone:  02 4929 7888  Email: admin@shac.com.au
(Provides services to the Hunter & Central Coast Regions only)
 
Techton Building Services
Telephone:  02 6681 5258   Email: info@techton.com.au 
(Provides services to the Far North Coast, Mid North Coast & New England Regions only) 
 
A building contractor who participate in the program can choose a Service Provider that suits their needs from a panel of authorised providers listed above. The list of providers are not in anyway ranked in the order they appear.

What are BCRP components?

The five components of the BCRP are:
 
1 - Contract Document Review
 
Review the contract documentation for the project to ensure that:
  1. the correct parties to the residential building contract, site address, etc. are identified
  2. the correct name and licence number of the builder's trading entity is shown on all documentation
  3. the licence held by the builder's trading entity covers all the work being contracted 
  4. the building contract terms do not create a commercial risk for the completion of the project because of unfair terms, provisions etc. (including contracts with developers and architect administered contracts) 
  5. the project application for insurance is consistent with the service provider's understanding of the project
  6. the project's construction schedule is appropriate for the type and complexity of the project.
2 - Reasonableness of Budget and Progress Payments
 
Ensure that the builder provides a detailed budget, providing for a gross margin that is reasonable for the project requirements, type, size and value.
 
Test the builder's detailed budget completeness and realistic costs including their allowance for contingencies including cost erosion and wage assumptions.
 
Review and confirm the scheduled payments under the building contract directly relate to the progress of work carried out at each stage that a payment is scheduled.
 
3 - Builder Performance Review Schedule
 
Determine the number of reviews (site visits and remote site assessments) that are required to be completed. Service provider must take into account the nature of the project to ensure that the builder's supervision of the project construction works is of an acceptable industry standard and the project is progressing to contractual completion date and budget.
  • Site visits require attendance at the project site by the service provider.
  • Remote site assessments do not require site assessment. The service provider must review sufficient information and make any necessary enquiries. The completion of a remote site assessment can include, for example, a review of project photographs or relevant documentation and phone enquiries with the builder.
4 - Builder Performance Review
 
Obtain a copy of the CoI for the project from the builder and check that all details correspond with the contract and the licence of the builder's trading entity.
 
Undertake reviews as scheduled.
 
At the time of each site visit or remote site assessment:
  1. review all scheduled progress payments invoiced to determine that progress claims were appropriate
  2. review all third party certificates (including engineers' inspections, mandatory PCA inspections, trade compliance certificates etc.) issued since the previous BCRP review
  3. review contract variations ensuring they are in writing and properly costed
  4. review progress in accordance with the project construction schedule and terms of contract and investigate reasons for any significant delays
  5. review the builder's competence in site supervision for all works carried out since the previous report, and any areas previously identified as a concern
For each assessment prepare a report and include dated photographs, any concerns, and notes covering an observation of the following:
  • general site presentation
  • work flow of trades and materials
  • competence of the trades and appropriateness of the materials being used
  • Report to the scheme agent any concerns over the builder's competency to complete the project including concerns as to time delays, standard of work performed, any evidence of cash flow issues, and where payments have been made or sought other than as scheduled under the building contract.
Provide timely copies of all completed Builder Performance Review Reports to the builder and to the scheme agent.
 
5 - Final Report On Completion Of Project
 
On completion of the project prepare a final report including:
  • confirmation that all scheduled reviews have been completed
  • details as to whether there are any unresolved issues of concern
  • comment on the progression or development of the builder's competency relating to specific areas that have been reviewed as part of the BCRP.

BCRP service standards

All BCRP providers are required to maintain service standards.
 

Service Standards

Builder Services Timeframe

Advise builder of missing information required to enable completion of any service associated with the BCRP, including application form and/or any of components 1 – 4

Within 1 business day of receipt of information

Advise builder of any delay in completion of any service associated with the BCRP, including application form and/or any of components 1 – 4 and the likely length of and reasons for the delay

Within 1 business day of becoming aware

Process application form

Within 2 business days of receipt of fully completed form

Contact builder after receipt of signed BCRP Builder Agreement

Within 2 business days of receipt of signed BCRP Builder Agreement

Complete Component 1 of BCRP

Within 3 business days of receipt of Builder Agreement and associated documentation

Complete Component 2 of BCRP

Within 3 business days of receipt of Builder Agreement and associated documentation

Complete Component 3 of BCRP

Within 3 business days of receipt of Builder Agreement and associated documentation

Notify Scheme Agent and HBCF where builder does not satisfactorily complete the requirements of BCRP Components 1, 2 and 3.

Within 7 days of the due date of the requested information

Notify Scheme Agent where builder has already commenced works under the building contract for the project.

Immediately

Complete activities under Component 4 of BCRP

Within 2 business days of receipt of notification by Builder

Provide completed Builder Performance Review Reports to builder and Scheme Agent

Next business day after site visit and/or remote site assessment

Reporting to HBCF (through Scheme Agent) concerns regarding builder’s capacity to complete existing projects or take on new work

Within 1 business day of date of awareness

Complete Component 5 of BCRP

Within 7 business days of the final BCRP Component 4 Builder performance review

Notice concerning Archicentre

HBCF has entered into deeds with 20 of the 23 of the former Archicentre architects to complete OPEN BCRP projects. All of the architects who entered into deeds with HBCF were providing BCRP services for Archicentre at the time of its liquidation on 6 September 2016. A media release concerning the Archicentre liquidation can be downloaded here.

Architects have contacted builders direct to enter into fresh agreements to complete the BCRP services. Under their new agreements, builders will pay the architect directly on the same terms originally agreed with Archicentre for BCRP services.

Where a builder has already paid in advance for BCRP services which have not yet been provided by Archicentre, the Australian Institute of Architects has advised that it will refund those monies. As such builders can claim refunds for services paid but not provided before the liquidation of Archicentre, by lodging a Proof of Debt Form available on the liquidator's website and emailing the completed form to archicentre@kordamentha.com.

Builders should not pay architects again for any services for which they had previously paid Archicentre and not received a refund. In these circumstances, the Architect should invoice HBCF.

Please contact HBCF for any queries.