TECHNOLOGY & DIGITAL TRANSFORMATION

Regulation forces change in software for developers

The introduction of two consumer protection initiatives in 2021 are the result of shifting industry sentiment as the balance of risk and responsibility is pushed further up the line

Radley Foxon | Updated on 14 April 2022

Faced with new legislation, looming insurance responsibilities and a shifting risk profile, developers and contractors are being forced to consider new software to help them prepare for the increasing administrative and regulatory burden.

The introduction of two consumer protection initiatives in 2021 are the result of shifting industry sentiment as the balance of risk and responsibility is pushed further up the line.

The Independent Construction Industry Risk Rating Tool (iCirt) and Design and Building Practitioners Regulation 2021 (NSW), together with plans for NSW government's introduction of decennial liability insurance, have forwarded more accountability to developers, requiring they share responsibility for build quality and compliance, open their books to receive risk ratings, and prove they have sufficient capital to undertake remedial work if defects are identified.

While the new legislation comes with additional requirements, what is ultimately being demanded from developers is not necessarily more paperwork, but more accountability and transparency from all stakeholders involved in the build process.

However, in an industry known to be slow to adopt new technology, the ability to comply is being hindered by the fact that many developers are still using old software designed to meet industry standards of 10 to 20 years ago.

Simpel's Chief Executive Kurt Robinson has worked in property for more than 20 years and observed how software needs have evolved.

“Developers used to manage risk by pushing it further down the line and old software was more of a tool for liability, to help cover themselves,” Robinson, who is also Simpel co-founder, said.

“It did the job because requirements were basic and communication and document management was more about storing files and correspondence.”

“Developers require auditable records of every file change or communication that has occurred; from the DA and design phase, through to the build process, because they’re going to have to carry build warranties and insurance liability for seven to 10 years beyond completion”

Kurt Robinson, CEO | Simpel

As the regulatory environment evolves, responsibility is shifting with it and developers are looking for innovative solutions to help them and their contractors meet new requirements without increasing administration burden or cost.

“Developers require auditable records of every file change or communication that has occurred; from the DA and design phase, through to the build process, because they’re going to have to carry build warranties and insurance liability for seven to 10 years beyond completion,” Robinson said.

As the pace of regulation picks up, so too have expectations and the software designed to deliver it.

“We’ve been speaking to a lot more developers in the last few months who are frustrated with their older software,” Robinson said.

“Once they’ve seen what else is available, their eyes light up and their document management checklist expands. Now it includes document comparison and drawing markup tools, pixel tracking, BIM, document audit controls and real-time updates, all pushed to site via smartphone compatible interfaces or QR code scanning technology.

“Centralising this functionality is the easiest way for them to deliver transparency and accountability down the line and across the project life-cycle without needing lots of systems.

“Simpel is a single system designed and built in Australia for the Australian construction industry, which means we can adapt and innovate quickly and it’s cost effective from day one of a project.”