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The introduction of Mandatory Critical Stage Inspection procedures for all building projects serves to improve building across NSW. The following article explains why the administration of these inspections is crucial to financiers involved in any project.
What is a Mandatory Critical Stage Inspection (MCSI)?
A MCSI is a compulsory inspection during the construction phase which helps to ensure that what is built remains consistent with what has been outlined within the approved development consent and construction certificate. This ensures that the final constructed building meets the Building Code of Australia (BCA) and health and safety standards.
Who can conduct MCSI’s?
The Principal Certifying Authority (PCA) can conduct the MCSI’s. The council or a private certifier can act as the PCA for a development, issuing the Construction Certificate and Occupation Certificate and generally overseeing the construction or subdivision process. The role of the PCA is to:
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Administer the conditions of consent and progress of the development from commencement to completion and conduct appropriate inspections of each required stage of construction, as outlined within the construction crtificate;
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CPromptly advise the applicant, after any relevant inspections, of any outstanding work or works requiring rectification;
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Issue the applicant an Occupation Certificate for any building or change of building use when the relevant application has been lodged; and
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Receive and investigate any complaints from the public concerning the development.
What MCSI’s are required?
Inspections may include:
1. Class 1 (e.g. dwellings, additions and alterations to a dwelling) & 10 buildings (e.g. garage, shed, awning, swimming pool):
The development site must be inspected:
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At the commencement of building works; and
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After excavation for and prior to the placement of any footings; and
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Prior to pouring any in-situ reinforced concrete building element; and
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Prior to covering of the framework for any floor, wall, roof or other building element; and
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Prior to covering water proofing in any wet areas; and
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Prior to covering any stormwater drainage connections; and
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After the building work has been completed and prior to any Occupation Certificate being issued in relation to the building.
2. Class 2, 3 or 4 buildings (e.g. multi unit development, residential component of commercial buildings):
The development site must be inspected:
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At the commencement of building works; and
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Prior to covering of waterproofing in any wet areas, for a minimum of 10% of rooms with wet areas within a building; and
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Prior to covering any stormwater drainage connections; and
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After the building work has been completed and prior to any Occupation Certificate being issued in relation to the building.
3. Class 5, 6, 7, 8 or 9 buildings (e.g. offices, shops, industrial and commercial buildings): The development site must be inspected:
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At the commencement of building works; and
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Prior to the covering of any stormwater drainage connections; and
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After the building work has been completed and prior to any Occupation Certificate being issued in relation to the building.
When do MCSI’s not apply?
MCSI’s do not apply to manufactured homes or to dwellings that are built in sections off-site and transported to site for installation.
What if a MCSI is missed?
The PCA needs to ensure that the principal contractor or owner builder is aware of when the MCSI’s are due before construction commences. It is then the principal contractor or owner builder’s responsibility to inform the PCA when they are ready for inspections to take place. If work has proceeded past the point of a critical inspection, for example, if storm water drainage was completed and covered, often the only way to carry out the inspection is for the contractor or owner builder to uncover the works – which could prove costly, both in time and money. The PCA is unable to issue the Occupation Certificate if MCSI’s have been missed.
Conclusion
MCSI’s were introduced as an overall strategy to improve building practice in NSW and reduce the claims often resulting from poor building practice. These inspections are now a condition precedent to gaining occupation of the building and as such are of critical importance from the perspective of the financier.
If these inspections are not undertaken at the pre-determined intervals for the duration of the construction, significant delays could potentionally be experienced in gaining occupation for the project and in turn completing contracts of sale.
BMT & ASSOC monitor the progress of MCSI’s for the duration of a project on behalf of the financier, minimising any risk of delays at project completion and reducing the additional interest risks to the project, and the possibility of rescinding contracts of sale due to the expiry of sunset clauses.
BASIX Update
From October 1 2006, BASIX Alterations and Additions apply to projects that are valued at or more than $100,000 as well as large swimming pools. From July 1 2007, BASIX Alterations and Additions will apply to projects valued at or more than $50,000. Minor developments, including garages, storerooms, car ports, gazebos, verandahs and awnings, will be exempt from BASIX.
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