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Independent review into Queensland Building and Construction Commission recommends overhaul of regulator's structure and culture

Jashneil Kumar was told the cracks in his new house were his problem. (Supplied)

Just six months after moving in, cracks started to form in Jashneil Kumar's newly built home in Brisbane's north.

After the builder denied responsibility to rectify the issue, Mr Kumar contacted the Queensland Building and Construction Commission (QBCC), which claimed the cracking was within reason and he would have to cover the cost of repairs.

"I was shocked, because I thought they would have assisted more and genuinely didn't expect them to comply with what the builder was saying and say it's all our fault," Mr Kumar said.

"I was sure they'd see the size of the cracks and realise we need to investigate further.

"I understand all houses crack to a degree and there's going to be movement but we're not talking about a couple of small hairline cracks. We're talking about massive cracks that are several millimetres wide, all throughout the house."

The QBCC claimed the cracking was within reason.  (Supplied)

Mr Kumar said that, after his experience, he had little faith in the QBCC.

"It's just not something that I have confidence in as a regulatory body to uphold the rules and regulations of the building industry. It's very much a toothless tiger.

"This is just my opinion, but it seems they're very much on the side of the builders rather than being an independent body that's supposed to support both sides."

Report recommends structural overhaul

The long-awaited findings come amid ongoing challenges within the construction industry. (ABC News: Alice Pavlovic)

A damning report released on Wednesday into the effectiveness of Queensland's building and construction watchdog has recommended sweeping reforms to overhaul the troubled regulator after finding its organisational structure and processes were not fit for purpose.

It's the second independent report in a matter of days to highlight concerns around accountability and transparency issues within the state's public sector. 

In this case, last year, the state government commissioned former senior public servant and administrator Jim Varghese to head the review, amid concerns over the QBCC's functioning, culture, accusations of ministerial intervention and lack of transparency around decision-making.

The QBCC's role includes overseeing complaints, protecting consumers who buy a home and renovate, managing the Queensland Home Warranty Scheme (QHWS), licensing builders, maintaining building and construction standards and dispute resolution.

Generally, the QHWS covers loss where a licensed building contractor fails to complete, or rectify, residential construction work.

The long-awaited findings come amid ongoing challenges within the construction industry, including rising material and labour costs, skilled tradespeople shortages and high demand for housing.

Dr Varghese made 17 recommendations, including removing the QHWS from the QBCC's realm of responsibility, structural changes to key board and executive roles, and establishing a public conflict of interest register as well as an independent complaints unit.

He also recommended reducing the size of the Queensland Construction and Builders (QBC) board and that the regulator's IT systems be updated in order to be more fit for purpose.

Need for greater transparency

Dr Varghese spoke to state ministers, opposition MPs, current and former employees of the QBCC, stakeholders, complainants and the media.

He wrote that consumers and industry wanted "more transparency", fairness and consistency in decision-making processes, and that the "composition" of the board's structure had promoted a "perception of bias".

"It was clear the industry and consumer stakeholders who contributed to the review felt the QBCC had not met their expectations in managing their specific matters," Dr Varghese wrote.

To better address these issues, Dr Varghese recommended the QHWS be transferred to another government department or agency, such as Treasury, to "improve transparency" and enable the commission to "refocus its regulatory role" on licensing and compliance.

He also recommended that QBC board members be downsized from 10 to seven.

Dr Varghese wrote "unresolved conflicts" within the senior management team contributed to several experienced senior executives leaving the QBCC, "taking with them valuable skills and corporate knowledge".

"This, coupled with the one-stop shop model, has resulted in a need to change the organisational structure to ensure it is contemporary and fit for purpose," he wrote.

Dr Varghese also recommended the QBCC replace its various technology systems, which are "outdated and no longer fit for purpose".

State government adopts recommendations in 'significant reset'

Tim Mander said the review did not go far enough. (ABC News: Alice Pavlovic)

Public Works Minister Mick de Brenni — whose portfolio includes the QBCC — said the state government would adopt the report's recommendations "in full" or "in principle".

He said a "90-day action plan" had been implemented to address the matters raised in the report, but that some would require "detailed" business cases.

"We're getting to work today to implement all the findings," Mr de Brenni said.

"Ten of the recommendations we've accepted in full and seven we've accepted in principle.

"[The QBCC] has not met the expectations of some individuals," he said.

Mr de Brenni said the report demonstrated a "significant reset" for the building regulator.

"It calls for absolute fundamental change … it calls for us to significantly separate functions of the building regulator … and to refocus efforts on critical functions," Mr de Brenni said.

"[It found] the regulator's structure requires 'significant adjustments' to accommodate the scope of work that is now required of it in the Queensland construction industry."

'Not a lock, stock and barrel endorsement'

Shadow Minister for Housing and Public Works Tim Mander said the review did not go far enough.

"Many of these recommendations have already been included in previous reviews and [Mr de Brenni] sat on it and did nothing about it," Mr Mander said.

"The government recommendations are not a lock, stock and barrel endorsement of the review.

"It's a report that's very vanilla, the government's response … is not very enthusiastic, by saying they agree, in principle, but then giving themselves three years to implement it.

"I don't think Queenslanders can have confidence that we can see the proper reform," he said.

Queensland's building and construction industry is the state's third-largest employer and the third-largest contributor to the state's economy.

It contributes $47 billion to the economy and employs around 230,000 people.

The Housing Industry Association said it welcomed the release of the report and was "looking forward" to discussion around the implementation of its recommendations.

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