QUARTERLY REPORTSeptember 2016
QBCC SEPTEMBER 2016 QUARTERLY REPORT | 2
Our Highlights ......................................................................... 3
Delivery of Strategic Plan .....................................................4
Customer Service ........................................................................ 4
Operational Excellence ............................................................. 6
Our People ....................................................................................10
September Quarter Industry Activity ............................... 11
Licensing ......................................................................................... 11
Plumbing ........................................................................................ 12
Pool Safety .................................................................................... 13
Insurance ........................................................................................ 14
Building Complaints and Disputes ..................................... 15
Breaches and Offences ............................................................ 16
Adjudication Registry ............................................................... 18
Customer Feedback .................................................................. 18
Financial Management .........................................................19
Financial Commentary ............................................................. 19
Income Statement (unaudited) ...........................................20
Balance Sheet (unaudited) .................................................... 21
Index of Tables ......................................................................22
TABLE OF CONTENTS
QBCC SEPTEMBER 2016 QUARTERLY REPORT | 3
OUR HIGHLIGHTS
$7.9 MILLION
in insurance
claim payouts
CORRUPT CONDUCT AND PUBLIC
INTEREST DISCLOSURE
AWARENESS TRAINING
completed by staff
Various INTERNAL POLICES
REVIEWED or added
to improve
business operations
$1.91 MILLION
IN DEBTS
recovered for
creditors in the
July – September 2016
period
99% of all EMAIL
AND WEB ENQUIRIES
to the
QBCC contact centre
responded to within
one business day
QBCC SEPTEMBER 2016 QUARTERLY REPORT | 3
QBCC SEPTEMBER 2016 QUARTERLY REPORT | 4
This is a status report of key achievements and performance indicators, as defined in the QBCC Strategic Plan 2016-2020 for the Customer Service goal. The status is based on the delivery of projects and actions for each initiative being developed or implemented during 2016-17.
CUSTOMER SERVICE
IMPROVED CUSTOMER SATISFACTION WITH RESPECT TO DELIVERY OF OUR SERVICES
DELIVERY OF STRATEGIC PLAN
TABLE 1: CUSTOMER SATISFACTION SUCCESS MEASURES - JULY TO SEPTEMBER 2016
MEASURE TARGET ACTUAL STATUS COMMENTS
Overall customer satisfaction
80% 71% X Negative homeowner feedback in Building Disputes has been a significant contributor to this result. Homeowners are more likely to respond to survey requests than licensees and their responses traditionally result in a customer satisfaction score more related to the decision/outcome than to the overall service experience. Homeowner survey respondents outnumbered licensees in the quarter, with homeowners making up an overwhelming majority of responses rating the QBCC at below satisfaction levels. The QBCC continues to explore ways to inform and educate homeowners to improve satisfaction levels.
Licensee service satisfaction
80% 78% The licensee service satisfaction level has increased over the quarter from 69% to over 80%, giving an average of 78%. The QBCC also continues to explore ways to inform and educate licensees to improve satisfaction levels.
Social media sentiment metric
>30% 24% Risks are being managed, however, a decrease in positive sentiment was seen due to increased activity by negative influencers on social media posts. While the QBCC supports open and honest feedback, we have reminded certain people of the need to follow Community Guidelines. High volume of posts by these influencers have skewed the results.
Percentage of calls answered within 30 seconds
80% 84%
Respond to all email and web enquiries within 1 business day
90% 99%
Status is reported using the following key: = target achieved or exceeded = slightly outside target, risk being managed X = target not reached (see comments column).
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TABLE 2: CUSTOMER RELATIONSHIP MANAGEMENT SYSTEM SUCCESS MEASURE - JULY TO SEPTEMBER 2016
MEASURE TARGET ACTUAL STATUS COMMENTS
Completion of Service Delivery 2015 project – Phase 2 Insurance Business
100 % complete
100%
Status is reported using the following key: = target achieved or exceeded = slightly outside target, risk being managed X = target not reached (see comments column).
Other achievements:
The Service Delivery 2015 Insurance Services (Home Warranty, Claims and Claims Recoveries) systems are due to be launched on 28 October 2016. This will streamline internal processes which will in turn lead to better services for our customers.
IMPROVED DECISION-MAKING AND PROCESSING TIMES FOR APPLICATIONS, PERMITS AND CASE MANAGEMENT
– reviewing and improving our policies and procedures
– identifying and implementing opportunities for improvement as outcomes of audit and internal review
Achievements:
QBCC’s Internal Review Unit (IRU) is working to reduce a backlog of applications which remains a top priority for the Unit. Applications received before 9 September 2016 were triaged by IRU, with staff working overtime, and those which could not be resolved and which were within Internal Review jurisdiction (approximately 89 cases) were re-allocated to relevant business units. To date, 63 files have been allocated and remain open, 13 were allocated and closed and 11 remain in the backlog re-allocation queue. All new cases received after 9 September 2016 remain in IRU. There are 36 unallocated cases awaiting assessment in the IRU case queue.
FULL IMPLEMENTATION OF A NEW CUSTOMER RELATIONSHIP MANAGEMENT SYSTEM ACROSS QBCC
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This is a status report of key achievements and performance indicators, as defined in the QBCC Strategic Plan 2016-2020 for the Operational Excellence goal. The status is based on the delivery of projects and actions for each initiative being developed or implemented during 2016-17.
INCREASING REGULATORY EFFECTIVENESS AND CUSTOMER CONFIDENCE
- Implementing government reforms to effectively reduce contractor insolvency, improve the security of payment, the certification system and the licensing framework
- Creating awareness, educating the industry and providing advice on the non-conforming products, home warranty insurance scheme reforms and QBCC’s core business lines
OPERATIONAL EXCELLENCE
TABLE 3: REGULATORY EFFECTIVENESS AND CUSTOMER CONFIDENCE SUCCESS MEASURES - JULY TO SEPTEMBER 2016
MEASURE TARGET ACTUAL STATUS COMMENTS
Customer recognition: Licensee brand awareness >70% 72%
Customer recognition: Home owner brand awareness >15% 17%
Levels of unlicensed operators identified through audits <4% 1.49%
Status is reported using the following key: = target achieved or exceeded = slightly outside target, risk being managed X = target not reached (see comments column).
Other achievements:
• The QBCC’s new Toowoomba Regional Service Centre was opened on 7 September 2016• QBCC participated in the Housing Industry Association (HIA) Courier Mail Home Show from 9 to 11 September 2016• QBCC’s Services Trades Unit held a series of education and engagement activities in the quarter. These included:
• activities with the Master Plumbers’ Association of Queensland (MPAQ) PIPE events across the state• other industry engagements and presentations coordinated by the MPAQ• providing education services to TAFEs at Nambour and Mooloolaba, and TAFE SkillsTech at Acacia Ridge• discussions with plumbers and gas-fitters on licensing requirements• presentations to major contractors at the Service Trades Queensland college in Salisbury and
Townsville and the MPAQ• presentations to members of the National Fire Industry Association• discussions with the Electrical Safety Office on how to better protect the community• discussions with the Gold Coast 2018 Commonwealth Games Corporation to ensure contractors
working on facilities are appropriately licensed.
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TABLE 4: BUSINESS EFFICIENCY GAINS AND REDUCTION IN COST TO SERVE SUCCESS MEASURES - JULY TO SEPTEMBER 2016
MEASURE TARGET ACTUAL STATUS COMMENTS
Ability for customers to transact with QBCC online applications 24x7x365
98% 97.8%
Annual reduction in the quantity of QBCC systems 1 per quarter
1
IS Roadmap tracking within annualised budget costs 95% 94%
CONTINUED BUSINESS EFFICIENCY GAINS AND REDUCTION IN COST TO SERVE - decommissioning of unsupported and outdated systems and applications
- implementation of an Information Services infrastructure roadmap
Status is reported using the following key: = target achieved or exceeded = slightly outside target, risk being managed X = target not reached (see comments column).
Other achievements:
• The Building Inspectors’ field based technology solution was transitioned from Optus to Telstra. A new Operating System and new printers were also implemented, giving Building Inspectors greater reliability in their work equipment
• The Building and Construction Industry Payments Act 2004 (BCIPA) Extranet was decommissioned in September 2016, saving QBCC approximately $30,000 annually
• Implemented a mobile device management system, Airwatch, for improved security and support of mobile devices.
Other performance indicators
TABLE 5: LICENSING SUCCESS MEASURES - JULY TO SEPTEMBER 2016
MEASURE TARGET ACTUAL STATUS COMMENTS
Average number of days to process licence applications
30 days
26 days
Percentage of owner builder permits approved within 15 working days
90% 89%
Finalise a licence application within 30 working days (this relates to builders, designers, trade contractors, fire protection practioners, owner-builders and certifiers)
80% 73% X QBCC is facing increasingly high numbers of licence applications with limited resources. Applications are carefully scrutinized and additional time is allowed for applicants who do not provide all of the required information with the initial application form. Process improvements to reduce timeframes are ongoing.
Percentage of Pool Safety Inspectors licence applications processed in 5 business days
80% 94%
Plumbers and drainer licence applications processed in 5 business days
80% 84%
Percentage of plumbing and drainage work complaints investigated within 120 days
80% 67% Performance has been affected due to technical issues with internal systems and the resolution of multiple outstanding matters.
Status is reported using the following key: = target achieved or exceeded = slightly outside target, risk being managed X = target not reached (see comments column).
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TABLE 6: DISPUTE RESOLUTION SUCCESS MEASURES - JULY TO SEPTEMBER 2016
MEASURE TARGET ACTUAL STATUS COMMENTS
Percentage of early dispute resolution cases finalised within 28 days
90% 84% X The performance variance is due to a combination of factors including the complexity of cases, and the time taken for homeowners and contractors to respond to requests for additional information. On average, the processing time for the resolution of an early dispute case for the July – September quarter was 14.61 days. For a rolling 12 months it stood at 18.66 days.
Contact customers within 5 working days of receipt of their complaint lodged during construction
90% 82% X A slightly higher than expected receipt of cases during the previous two quarters meant slight delays in making initial contact during this quarter. Emphasis will be placed on rectifying this issue by ensuring case officers responsible for early dispute cases contact within the first five days.
Status is reported using the following key: = target achieved or exceeded = slightly outside target, risk being managed X = target not reached (see comments column).
TABLE 7: INTERNAL REVIEW SUCCESS MEASURES - JULY TO SEPTEMBER 2016
MEASURE TARGET ACTUAL STATUS COMMENTS
Percentage of internal review applicants contacted within 2 business days
95% 92% A few instances in which applications were not forwarded directly to the Internal Review Unit have led to delays, impacting the performance of this measure.
Provide a decision on the review within 28 calendar days
85% 26% X QBCC’s Internal Review Unit (IRU) is working to reduce a backlog of applications which remains a top priority for the Unit. Applications received before 9 September 2016 were triaged by the IRU, with staff working overtime, and those which could not be resolved and which were within Internal Review jurisdiction (approximately 89 cases) were re-allocated to relevant business units. To date, 63 files have been allocated and remain open, 13 were allocated and closed and 11 remain in the backlog re-allocation queue. All new cases received after 9 September 2016 remain in IRU. There are 36 unallocated cases awaiting assessment in the IRU case queue.
Status is reported using the following key: = target achieved or exceeded = slightly outside target, risk being managed X = target not reached (see comments column).
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TABLE 8: INSURANCE SUCCESS MEASURES - JULY TO SEPTEMBER 2016
MEASURE TARGET ACTUAL STATUS COMMENTS
Percentage of insurance claims for defective work assessed and response provided within 35 business days
90% 45% X The target set for this measure is a stretch target and was not achievable due to the size and complexities of claims received. Performance has been impacted by delays beyond the QBCC’s control such as the provision of information by homeowners, systems limitations which report worse than actual results and resourcing. Mitigating strategies include a new technology platform to be launched in late October 2016 and an increase in home owner education to help them in submitting their applications.
Contact customers within two working days of receipt of their insurance claim
90% 57% X The performance variance is due to a combination of issues including how the current system calculates when claims are received and when it appears for staff to process the claim. There have been a small number of cases where claims do not appear on the system for staff to process and QBCC only finds out when claimants call. These system issues will be fixed when QBCC transitions to another system soon. Other issues include staff being involved in work related to Home Warranty Insurance reforms and being trained up on the changes, as well as staff being away due to illness or leave. Strategies include making changes in how claimants are contacted.
TABLE 9: COMPLIANCE AND ENFORCEMENT SUCCESS MEASURES - JULY TO SEPTEMBER 2016
MEASURE TARGET ACTUAL STATUS COMMENTS
Percentage of complainants contacted in two business days of receipt of the complaint
90% 99%
Percentage of complainants contacted and advised on the outcome of their complaint’s assessment within 28 days
95% 91% X The performance variance is due to unplanned leave.
TABLE 10: PAYMENT DISPUTE RESOLUTION SUCCESS MEASURES - JULY TO SEPTEMBER 2016
MEASURE TARGET ACTUAL STATUS COMMENTS
Percentage of adjudication applications referred to an adjudicator within 4 days
97% 97%
Provide a resolution within 10 working days for 90% of standard claims
90% 98%
Status is reported using the following key: = target achieved or exceeded = slightly outside target, risk being managed X = target not reached (see comments column).
QBCC SEPTEMBER 2016 QUARTERLY REPORT | 10
This is a status report of key achievements and performance indicators, as defined in the QBCC Strategic Plan 2016-2020 for the Our People goal. The status is based on the delivery of projects and actions for each initiative being developed or implemented during 2016-17.
INCREASED CUSTOMER-FOCUSSED AND CAPABLE WORKFORCE – CONTINUOUS TRAINING AND DEVELOPMENT OF OUR STAFF
TO ENSURE A HIGHLY-ENGAGED, RESULTS-ORIENTED WORKFORCE
OUR PEOPLE
TABLE 11: INCREASED CUSTOMER-FOCUSSED AND CAPABLE WORKFORCE SUCCESS MEASURES - JULY TO SEPTEMBER 2016
MEASURE TARGET ACTUAL STATUS COMMENTS
Increased employee engagement 80% N/A This result will be reported on completion of the next survey.
Low staff absenteeism rates (days/person)
8 3.6
Separation rate 9% 4.82%
Percentage of participants pass relevant training assessments
95% 93% X 93% of participants who enrolled in the quarter completed their training and passed their assessments. Individuals who have commenced training but not completed the assessment will be followed up.
Status is reported using the following key: = target achieved or exceeded = slightly outside target, risk being managed X = target not reached (see comments column).
Other achievements:
• A Leadership Onboarding Course was completed by the Executive Leadership Team in August 2016• Other training sessions were completed by employees included:
• Privacy and Awareness in July 2016• Workplace Bullying and Harrassment in August 2016• Corrupt Conduct and Public Interest Disclosure Awareness in September 2016.
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Table 12 below shows the number of QBCC licensees.
Building licences
Individuals holding a trade contractor licence comprised almost half of all licence holders. This quarter sees 734 more licensees than the previous quarter.
There was a slight growth in applications for a QBCC licence during the quarter, with 2,465 applications received, equating to a 7% increase, compared to the previous quarter.
LICENSING
TABLE 12: LICENSEES BY CATEGORY AS AT 30 SEPTEMBER 2016 - JULY TO SEPTEMBER 2016
INDIVIDUAL COMPANY
Builder 25,795 8,160
Builder restricted 2,403 623
Trade contractor 40,126 9,145
Fire occupational 1,305
Certifier 435
Plumbing (occupational, provisional, restricted and drainer), including endorsements
16,458
Pool Safety Inspector 845
Refrigeration, airconditioning and mechanical services including unlimited design
542
Refrigeration, airconditioning and mechanical services including limited design
1,744
SEPTEMBER QUARTER INDUSTRY ACTIVITY
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TABLE 13: OTHER BUILDING LICENSING STATISTICS – JULY TO SEPTEMBER 2016
MEASURE JUL 2016 AUG 2016 SEP 2016
Applications received 773 845 847
Mutual recognition applications 45 53 60
Owner-builder permit applications 147 160 178
During the September quarter, 58 investigations were closed with the following outcomes.
PLUMBING
TABLE 14: PLUMBING INVESTIGATION OUTCOMES – JULY TO SEPTEMBER 2016
Penalty applied 26
Disciplinary action taken 0
Negotiated outcome 0
Referred 0
Works rectified 0
No evidence to proceed 28
Other 4
Total 58
The 2016 notifiable works audit program for July to September 2016 were:
TABLE 15: TYPE OF NOTIFIABLE WORK AUDIT – JULY TO SEPTEMBER 2016
Audits of companies performing hot water system installations and replacements 64
Audits of real estate agents 5
Audits resulting from investigations 25
Type of Notifiable Work Audit 94
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Pool safety laws were introduced in Queensland on 1 December 2010 to help reduce immersion incidents of children in swimming pools. All pools including existing pools must have a barrier compliant with the pool safety standard.
During the September quarter 2016, the following pool safety inspector licensing activities were recorded:
• New licence applications received: 35• Licence renewals: 104• Total number of licences: 845.
The QBCC is responsible for monitoring and enforcing the requirement for pool owners to obtain certificates and refers unsafe pools to local governments, who are required to inspect and may take enforcement action.
During the September quarter 2016 period, QBCC’s Pool Safety Unit received 21 complaints against Pool Safety Inspectors and pool owners. The Unit finalised 24 cases which included cases from previous periods. Eleven non-compliant pools were referred to local government for mandatory inspection.
In the reporting period, pool safety certificates were issued to 7,246 properties with non-shared pools, and 1,536 properties with shared pools. 439 new swimming pools were registered.
POOL SAFETY
TABLE 16: POOL SAFETY ENQUIRIES – JULY TO SEPTEMBER 2016
JUL 2016 AUG 2016 SEP 2016
Average number of enquiries per week 64 86 95
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During the September quarter 2016, the QBCC processed 23,459 insurance policies and received more than $27 million in insurance premiums for policies raised in relation to new builds, alterations or additions.
The QBCC paid out a total of $7.9 million in insurance claim costs across 503 (schedules) during the September quarter 2016. This included $2.7 million for non-completion claims, $4 million for defect claims and $1.1 million for subsidence claims.
INSURANCE
TABLE 17: INSURANCE SCHEME POLICIES – JULY TO SEPTEMBER 2016
JUL 2016 AUG 2016 SEP 2016
Number of alterations/additions 4,681 5,494 5,277
Number of new builds 2,357 3,220 2,430
Value of alterations/additions $1,816,322 $2,182,353 $2,142,347
Value of new builds $6,402,405 $8,118,545 $6,963,591
TABLE 18: INSURANCE CLAIMS – JULY TO SEPTEMBER 2016
JUL 2016 AUG 2016 SEP 2016
Non-completion claims (schedules approved) 37 63 41
Non-completion claim cost $612,797 $1,027,385 $1,116,231
Defect claims (schedules approved) 61 90 98
Defect claim cost $1,223,686 $1,276,905 $1,535,305
Subsidence claims (schedules approved) 29 43 41
Subsidence claim costs $290,151 $433,803 $412,490
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There were 998 complaints received by the QBCC during the September quarter 2016. The volume of complaints has remained consistent with 909 complaints received in the previous quarter.
BUILDING COMPLAINTS AND DISPUTES
TABLE 19: BUILDING COMPLAINTS AND DISPUTES – JULY TO SEPTEMBER 2016
JUL 2016 AUG 2016 SEP 2016
Complaints received 344 354 300
Directions issued 55 105 54
TABLE 20: MOST COMMON DEFECTS – JULY TO SEPTEMBER 2016
TOTAL
Painting - Internal 191
Roof Cladding – Steel 99
Joinery - Timber 90
Floor Tiling 84
Linings – Ceiling - Internal 80
Painting - External 72
Joinery - Aluminium 70
Joinery – Architraves, Skirting and Trims 64
Joinery - Cupboards 60
Linings – Wall - Internal 50
QBCC’s Technical Standards Unit (TSU) audits the compliance of building works with the National Construction Code (NCC) and relevant Australian Standards. Where non-compliance is noted, builders are encouraged to rectify the defective work to avoid further action by QBCC.
The TSU conducted inspections on 431 building sites comprising a total of 1,079 residential living units during July to September 2016.
The areas of operation this quarter were Brisbane, Gold and Sunshine Coasts, Ipswich and Darling Downs.
Technical Standards Unit
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The Industry Intelligence Unit triages all complaint types received by the QBCC.
The Minimum Financial Requirements (MFR) policy commenced on 1 October 2014 following the repeal of the Financial Requirements for Licensing (FRL) policy. The MFR policy has reduced regulatory burden and costs by removing the need for licensees to provide financial information at renewal time. The QBCC is also able to move quickly and decisively to deal with issues of non-payment with the requirement for licensees to pay all debts within agreed trading terms or risk losing their licence. The MFR policy has therefore resulted in a shift in the compliance activities of the QBCC.
During the September quarter 2016, QBCC undertook 80 non-payment of debts investigations resulting in the suspension of 13 licences and the cancellation of 9 licences. QBCC’s ongoing success in getting debts paid continues to draw positive industry feedback with $1,912,662.25 recovered to creditors this quarter. As at 30 September 2016, the QBCC has recovered $11,540,830.42 for creditors since the MFR policy commenced.
BREACHES AND OFFENCES
TABLE 21: COMPLIANCE ACTIVITY – JULY TO SEPTEMBER 2016
JUL 2016 AUG 2016 SEP 2016
Caution issued (suspected breach) 2 2 2
Warning issued (identified breach) 8 2 16
Referred to specialist unit for further investigation 68 42 56
TABLE 22: FINANCIAL INVESTIGATIONS – PAYMENT OF DEBTS – JULY TO SEPTEMBER 2016
Non-payment of debts (MFR) investigations 80
Suspension – non-payment of debts 13
Cancellation – non-payment of debts 9
TABLE 24: LICENCE EXCLUSIONS – JULY TO SEPTEMBER 2016
Company licences cancelled due to exclusion 14
Individual's licences cancelled due to exclusion 27
Permanent exclusions 6
TABLE 23: FINANCIAL INVESTIGATIONS - AUDITS – JULY TO SEPTEMBER 2016
Financial audits 129
Suspension - non-compliance with audit 17
Suspension - not meeting MFR 15
Cancellation - non-compliance with audit 6
Cancellation - not meeting MFR 5
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TABLE 25: AUDITS AND INVESTIGATIONS – JULY TO SEPTEMBER 2016
DOMESTIC CONTRACTS COMMERCIAL CONTRACTS
Audits 0 0
Investigations 113 5
Warnings issued 37 1
Contractors issued with Infringement Notices 69 0
Infringement Notices issued 70 0
The QBCC undertakes proactive audits to detect unlicensed contractors unlawfully performing building work.
During the September quarter 2016, there were 61 complaint and audit cases closed in respect of certifiers. Table 28 shows instances where an unsatisfactory finding was determined.
TABLE 26: DEMERIT POINTS ISSUED – JULY TO SEPTEMBER 2016
Unsatisfied Judgment Debts 10
Contractual Offences 644
Failure to Rectify 394
Fail to pay premium 90
Carry out work without nominee 0
Other 74
Total demerit points issued 1,212
TABLE 28: CERTIFIER COMPLIANCE – JULY TO SEPTEMBER 2016
Reprimands issued 4
Direction – enforcement action and ensure certification 2
Licence condition imposed 0
No further action 37
TABLE 27: LICENSING AUDITS – JULY TO SEPTEMBER 2016
JUL 2016 AUG 2016 SEP 2016
Sites Visited 120 148 148
Interviews conducted 391 452 496
Suspected number of unlicensed contractors 1 3 16
Percentage of unlicensed contractors 0.26% 0.66% 3.23%
The QBCC have issued a total of 302 infringement notices to 273 participants for all offences. The most common offences are unlicensed contracting (97 infringements issued), failure to rectify defective work (58 infringements issued), failure to pay an insurance premium (35 infringements issued), advertising offences (15 infringements issued) and improper use of a licence offences (11 infringements issued). In relation to contractual offences, 70 infringement notices were issued for domestic contract offences and none against Part 4A of the QBCC Act (that is, commercial and subcontract offences). Of the 70 infringements issued for domestic contract offences, 34 were for failing to have a compliant contract before commencing work, 21 were for excess deposit offences, seven were for not providing a commencement notice, four were for not providing a consumer guide, two were for foundations data offences, one was for not providing a copy of the contract to the owner and one was for a progress payment offence.
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During the September quarter 2016, the average time taken to decide a standard claim was 20 business days from the day of lodgement and 81 business days from the day of lodgement for complex claims. The lowest value claim lodged for this quarter was $378.17 and the largest $2,945,860.53. The average value of fees for this quarter was $16,740.26 and the minimum fee for this quarter valued at $51.75.
During the September quarter 2016, the QBCC saw feedback numbers in suggestions, compliments and service complaints trending upwards for the 2016-17 year. This is a result of the increased ease of submitting and capturing both internal and external feedback.
Further details regarding adjudication decisions can be found on the QBCC website.
ADJUDICATION REGISTRY
CUSTOMER FEEDBACK
TABLE 29: ADJUDICATION REGISTRY - STATUS OF APPLICATIONS – JULY TO SEPTEMBER 2016
JUL 2016 AUG 2016 SEP 2016
Adjudication applications lodged 41 58 49
Adjudication applications withdrawn 22 18 19
Decisions released 31 26 30
TABLE 31: CUSTOMER FEEDBACK STATISTICS – JULY TO SEPTEMBER 2016
Suggestions 68
Compliments 68
Service complaints 283
TABLE 30: ADJUDICATION REGISTRY - VALUE OF APPLICATIONS – JULY TO SEPTEMBER 2016
JUL 2016 AUG 2016 SEP 2016
Claimed amounts $5,801,051.26 $4,267,264.64 $6,708,768.72
Decision released - claimed amounts $1,027,996,464.13 $15,525,371.62 $3,740,915.88
Decision released - adjudicated amounts $615,096,077.96 $10,178,792.10 $2,914,032.77
Decision released - fees $1,098,068.75 $189,121.31 $169,212.41
(all claimed amounts reported excludes GST)
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The QBCC’s financial operating result has improved compared to the original budget forecast. The QBCC has seen a slight increase in income and a decrease in expenditure during the first quarter when compared to the original budget for the same period.
The return on investments has been higher than forecasted in the first quarter to due the slight rebound in the global financial markets. The QBCC has also seen an increase in its share of earned underwriting income due to an increase in insurance premiums over the last 12 months. The number of licencing applications received is also higher than forecast. These increases are offset by a lower than expected insurance claims recovery income.
Employee expenses are lower than the budget due to a number of vacant positions. This is not expected to continue for the full financial year. Supplies and services expenses are also less than the budget due to the review of current projects and the timing of initiatives which will be rolled out later in the financial year. The claim approval expenses is lower than forecasted but this is likely to increase through the financial year.
FINANCIAL COMMENTARY
INCOME
EXPENSES
FINANCIAL MANAGEMENT
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INCOME STATEMENT (UNAUDITED)
YTD Q1
ACTUAL
$’000
YTD Q1
BUDGET
$’000
VARIANCE
$’000
ORIGINAL
BUDGET FULL
YEAR $’000
INCOME FROM CONTINUING OPERATIONS
Licence revenue 8 977 8 756 221 34 603
Premium revenue 22 030 21 425 606 90 983
Reinsurance and other recoveries revenue 15 604 20 091 (4 487) 76 909
Administration fees revenue 4 737 4 912 ( 175) 21 214
Investment revenue 5 609 1 797 3 813 7 275
Other revenue 1 742 1 547 195 6 152
Total Revenue 58 700 58 528 172 237 136
Gain/(Loss) on disposal of assets 7 ( 4) 11 ( 23)
Total Income from Continuing Operations 58 707 58 524 183 237 113
EXPENSES FROM CONTINUING OPERATIONS
Outward reinsurance 12 995 11 943 (1 052) 50 856
Claims approved and charged 12 129 16 489 4 360 63 668
Employee expenses 10 439 11 696 1 258 48 574
Supplies and services 6 246 9 080 2 834 31 883
Depreciation and amortisation 641 756 114 3 516
Impairment losses 6 598 10 516 3 918 40 598
Other expenses 121 145 24 2 777
Total Expenses from Continuing Operations 49 170 60 625 11 455 241 871
Operating Result for the Year 9 537 (2 101) 11 638 (4 757)
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BALANCE SHEET (UNAUDITED)
YTD Q1
ACTUAL
$’000
YTD Q1
BUDGET
$’000
ORIGINAL
BUDGET FULL
YEAR $’000
CURRENT ASSETS
Cash and cash equivalents 11 642 7 205 7 205
Receivables 23 550 24 490 26 749
Reinsurance receivables 28 625 28 625 30 625
Other financial assets 226 310 220 301 230 342
Other current assets 25 025 24 380 27 390
Total Current Assets 315 152 305 001 322 311
NON-CURRENT ASSETS
Reinsurance receivables 86 922 86 922 90 617
Leasehold restoration paid in advance 48 48 -
Intangible assets 9 804 9 872 8 933
Property, plant and equipment 3 856 4 005 3 734
Total Non-Current Assets 100 630 100 847 103 283
Total Assets 415 783 405 848 425 594
CURRENT LIABILITIES
Payables 34 395 37 573 41 782
Accrued employee benefits 4 422 4 406 4 065
Provisions 258 312 112
Unearned revenue 77 767 76 255 82 262
Future claims and associated costs 51 465 51 465 51 465
Total Non-Current Assets 168 307 170 010 179 685
NON-CURRENT LIABILITIES
Accrued employee benefits 5 537 5 537 5 745
Provisions 723 723 715
Future claims and associated costs 161 575 161 575 174 103
Total Non-Current Liabilities 167 836 167 836 180 563
Total Liabilities 336 142 337 846 360 249
Net Assets 79 640 68 002 65 346
Equity Accumulated surplus 79 640 68 002 65 346
Total Equity 79 640 68 002 65 346
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Table 1: Customer satisfaction success measures 4
Table 2: Customer relationship management system success measure 5
Table 3: Regulatory effectiveness and customer confidence success measures 6
Table 4: Business efficiency gains and reduction in cost to serve success measures 7
Table 5: Licensing success measures 7
Table 6: Dispute resolution success measures 8
Table 7: Internal Review success measures 8
Table 8: Insurance success measures 9
Table 9: Compliance and enforcement success measures 9
Table 10: Payment dispute resolution success measures 9
Table 11: Increased customer-focussed and capable workforce success measures 10
Table 12: Licensees by category as at 30 September 2016 11
Table 13: Other building licensing statistics – July to September 2016 12
Table 14: Plumbing investigation outcomes – July to September 2016 12
Table 15: Type of Notifiable Work Audit – July to September 2016 12
Table 16: Pool safety enquiries – July to September 2016 13
Table 17: Insurance scheme policies – July to September 2016 14
Table 18: Insurance claims – July to September 2016 14
Table 19: Building complaints and disputes – July to September 2016 15
Table 20: Most common defects – July to September 2016 15
Table 21: Compliance activity – July to September 2016 16
Table 22: Financial investigations – payment of debts 16
Table 23: Financial investigations - audits 16
Table 24: Licence exclusions 16
Table 25: Audits and investigations – July to September 2016 17
Table 26: Demerit points issued – July to September 2016 17
Table 27: Licensing Audits – July to September 2016 17
Table 28: Certifier compliance – July to September 2016 17
Table 29: Adjudication registry - Status of applications 18
Table 30: Adjudication registry - Value of applications 18
Table 31: Customer feedback statistics 18
INDEX OF TABLES
QBCC SEPTEMBER 2016 QUARTERLY REPORT | 23
QBCC SEPTEMBER 2016 QUARTERLY REPORT | 24
299 Montague Road, West End Qld 4101
GPO Box 5099, Brisbane Qld 4001
T: 139 333 F: 07 3225 2999
W: qbcc.qld.gov.au
Need more information?
Visit qbcc.qld.gov.au or call us on 139 333.