Fine for building supervisor who didn’t properly manage and supervise

  • Mr Hudson was the nominated supervisor but didn’t carry out duties properly
  • Supervisor had no previous experience in similar role
  • Fined $4,000 by SAT for breaching Building Services (Registration) Act 2011
  • A nominated building supervisor for a registered building company has been fined $4,000 by the State Administrative Tribunal (SAT) for failing to carry out his responsibilities properly.

    James Raymond Hudson was employed by M3 Building and Construction Pty Ltd (now in liquidation) between May 2015 and July 2016. Despite being the nominated supervisor for the company’s projects, he did not properly manage or supervise the building services being carried out, either personally or through site supervisors.

    Whilst they engaged him to be the company’s nominated supervisor, the company’s directors did not allow Mr Hudson to have control of the management and supervision of M3’s building services.

    Mr Hudson became aware early that he was being sidelined and that an unqualified director was in effective control of the company’s building services. Still, he chose to remain in the role for 16 months.

    A nominated supervisor must have effective control of the construction process including overseeing construction programming, obtaining permits, engaging tradespeople and contractors, ordering equipment and materials. The nominated supervisor should also ensure building standards are maintained and any work complies with approved plans and specifications. Defects must be identified and rectified in a timely manner.

    Depending on the structure of the business, a nominated supervisor may also have to prepare progress reports on building services for company directors. Prior to his appointment, Mr Hudson had not been a nominated supervisor for a corporate building contractor and did not have any experience of how to carry out the role in that context.

    Executive Director of Building and Energy Saj Abdoolakhan said an effective nominated supervisor is critical to ensuring an appropriate standard of construction.

    “Nominated supervisors must not relinquish their statutory obligation to properly manage and supervise by allowing company officers to completely control the building process,” Mr Abdoolakhan said.

    “Direct oversight of the process must always sit with the nominated supervisor. Without proper management and supervision, there is a greater risk that projects will not comply with building standards or the approved plans and specifications and, as a result, defects will undoubtedly occur and disputes will arise.

    “This of course is unacceptable. Registered building companies must ensure that their projects are under the control of their nominated supervisors at all times.”

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