If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
Enter details below and sign up
COVID-19 may impact the building product supply chains and availability of materials, therefore it is particular important to understand the process for changing or using alternate building products during a build.
For many reasons a party to a building project may consider using building products that are different to those originally specified in the building permit or requested as part of a contract.
Substitution can sometimes be simple and easy, but it can also be complex, time consuming and risky.
Some substitutions can be successful and save money and/or time and be very simple such as switching one brand of product for an equivalent performing alternate.
However, if not managed correctly product substitution could potentially create legacy issues for the building if a full evaluation of the proposed change is not undertaken.
Substituted products could also in certain circumstances compromise the performance of the building as a whole.
With more and more new products and systems coming into the building industry and often many of these being ‘building systems’ their performance and certification can be dependent on the specified and ancillary products that must be used in accordance with the product documentation.
Therefore managing changing of products to those originally specified or requested, requires careful consideration.
Unfortunately, some people may see ‘product substitution’ in a negative light as builders seeking to save costs and use inferior products, however, they don’t adequately understand that there are numerous reasons for product substitutions as outlined above.
Coronavirus (COVID-19) may have a global impact on supply chains and business operations and the extent of the impact of the current situation will most likely be unknown for some time.
Delays in getting building supply can negatively impact your building projects, including finishing times and timeframes for starting new jobs.
With availability of some products being impacted at present and potentially into the future, there may be a need to consider changing or substituting some products to allow projects to be completed.
Again, this reinforces the need to manage the changing of products carefully and ensure regulatory and contractual requirements are still met. Keeping open lines of communication with relevant parties, particularly the owner and building certifier/surveyor is equally important.
When thinking about substituting a product in a building project, it is good practice to follow a process that considers the effects of the change and makes sure that the related parties are aware, and where needed, have approved the change.
Products included in ‘building work’ must comply with the NCC. What is considered ‘Building work’ is defined in state and territory legislation. In carrying out building work, a building approval must be obtained from the relevant building certifier/surveyor for the project or the local council in some states.
If the building work is considered ‘exempt work’, this means a building approval is not required but, as it is still building work, it must comply with the NCC.
However, products such as fittings and fixtures i.e. door handles, paint, skirting and architraves, appliances, etc. are not regulated under the NCC or as ‘building work’ and these products can be substituted without need for reference to relevant NCC or building application/approval. They may though be covered in contractual requirements or general specifications agreed to with the home owner.
Product substitutions will generally fall into one of the following categories:
Building legislation requires all parties in the supply chain to make sure that the materials and products used in building work are fit for purpose. Part A5 of the NCC sets out the product documentation requirements for building products (excluding electrical products). These provisions explain how to provide evidence of suitability for ‘a material, product, form of construction or design’ to demonstrate that it is fit for purpose for the application it will be used in.
The types of evidence that are required to demonstrate that a product, applies both for products complying through a Performance Solution or Deemed-to-Satisfy Solution and may include one or a combination of the following.
For more information on those compliance pathways you should refer to the NCC directly, the ABCB evidence of suitability handbook (www.abcb.gov.au) and HIA have produced a range of information sheets on the NCC evidence of suitability and product conformity requirements.
When substituting a material or product it is important to understand the building context.
Certain products may have been specified for a reason, particularly if the product is part of a performance solution and a substituted product may significantly change NCC or performance compliance that has been achieved for the project. Points you should think about include the following:
As noted above, under most circumstances apart from minor immaterial changes, the building surveyor will likely need to be informed of the change. The building certifier/surveyor’s will generally take into consideration the following:
Ideally, you should notify the building certifier/surveyor as early as possible to avoid any unnecessary delays.
If a product is substituted without approval you may encounter a problem when the building certifier/surveyor goes to issue the final certificate, as the building work will not match what is on the building permit.
A building system is a combination of products specified by a manufacturer, supplier or designer to be used together, as a system, to achieve the requirements of the NCC.
Extra caution needs to be taken when thinking about substituting a product that is part of a building system.
This is because the change will most likely affect the performance of the whole system. The proposed substitute product may not have been tested for use with the other components, or the system may become outside the scope of use defined by the manufacturer.
Changing a component that forms part of a system may also void any warranty offered by the supplier or manufacturer.
State and territory based building laws set out a number of implied warranties that apply to building work. You cannot contract out of and these and non-compliance can have significant consequences.
Some of these implied warranties include:
Builders should check the contract they have with the owner. If a builder substitutes a product, they may no longer be building what they have been contracted to provide.
Product substitution should be discussed between all parties – the designer, builder, project manager and building owner – as all have roles and responsibilities in the process.
Building owners will usually be responsible for making final product decisions for material changes to the design unless they have delegated this responsibility to another person.
Most importantly though is that you discuss any product changes with the building surveyor/certifier for your project, as at the end of the day they have to approve the new product. Most building regulators have information on the process for variations to projects from building approval documentation on their websites.
More articles on:
No matter the size of the job, a watertight building contract is critical to protect your business, and the current climate presents a great opportunity to go digital with your contracts.