New Practice Standard for Professional Engineers

Key Information

Compliance with the Practice Standard will become a mandatory condition of Professional Engineer registration from September 2024.
Failure to comply with the Practice Standard from this time will attract enforcement action and penalties, including cancellation of registration.
To support industry and engineering practitioners in understanding their obligations prior to September 2024, Building Commission NSW inspectors will use the standard during audits of professional engineering work.

Summary

The Practice Standard for Professional Engineers was released in March 2024. It sets out the obligations, responsibilities, and standards required of registered Professional Engineers to complete engineering works under the Design and Building Practitioners Act 2020 (DBP Act).

The DBP Act, enacted in June 2020, imposes multiple new obligations on design practitioners and builders throughout the building's life to ensure better compliance with the Building Code of Australia. This involves the requirement for a coordinated design among key stakeholders during the design stage, which helps mitigate miscoordination during and after the construction stage. This Practice Standard should be understood in conjunction with other requirements and conditions of registration imposed on Professional Engineers, including:

The Code of Practice for Professional Engineers, set out in Division 2, Part 2, Schedule 4 of the Design and Building Practitioners Regulation 2021 (the DBP Regulation).
Conditions of registration imposed on design practitioners, principal design practitioners, or building practitioners, where the Professional Engineer is registered as one or more types of practitioner under the DBP Act.
The Building and Development Certifiers Act 2018, where the engineer is undertaking certification work.

What is the new Practice Standard for Professional Engineers?

The intent of the Practice Standard for Professional Engineers is to provide the standards expected by Professional Engineers in carrying out engineering work under the DBP Act 2020. Compliance with the standard is a condition of registration for all Professional Engineers registered under the DBP Act. Currently, the Practice Standard applies to engineering works under the DBP Act for Class 2, 3, and 9C buildings. The Act only allows an engineer who is not registered as a Professional Engineer to carry out work if they are under the direct supervision of a registered Professional Engineer. Key conditions include:

Direct Supervision Required: An unregistered engineer can carry out professional engineering work if directly supervised by a registered Professional Engineer authorized to do that work.
Supervision Obligations: The supervising Professional Engineer must ensure the work is within their competence, carried out competently, and in accordance with the DBP Act and other relevant laws.
Record Keeping: The supervising Professional Engineer should maintain records demonstrating direct supervision over all types of professional engineering work.
Compliance with Standards: The work carried out by the supervised engineer must meet the standards expected of a Professional Engineer and comply with applicable legislation and codes.

These points ensure that professional engineering work is carried out to a high standard and in compliance with legal requirements, even when done by an unregistered individual under supervision.

Areas Requiring Registration

The six areas of engineering requiring registration as defined in Schedule 1 of the DBP Regulations are:

Civil Engineers
Electrical Engineers
Fire Safety Engineers
Geotechnical Engineers
Mechanical Engineers
Structural Engineers

Duties and Responsibilities

Professional Engineers operating under the DBP Act, Regulations, and the New Practice Standard have a duty of care to abide by the following:

Fit for Purpose Criteria (Section 2.2 of the Practice Standard 2024):

Contract Incorporating Design Brief: The engineer must have a contract that includes a Design Brief, specifying the engineering services, technical and design requirements, and insurance requirements.
Legislative Compliance: The engineer’s work must comply with all applicable legislative requirements, including the DBP Act and other relevant legislation.
NCC Compliance: Professional engineering work must adhere to the National Construction Code (NCC) provisions.
Area of Competency: Engineers must only undertake work within their area of competency as listed on their registration.
Coordination with Designers: Engineers are required to coordinate with other designers to ensure integrated and compliant project delivery.
Guidance for Implementation: Engineers should provide guidance to building practitioners on implementing the professional engineering work.

Duty of Care (Section 2.3 of the Practice Standard 2024):

Exercise Reasonable Care: Engineers must exercise reasonable care to avoid economic loss caused by defects in construction work.
Owe Duty to Owners: The duty of care is owed to the owners of the land and subsequent owners where construction work is carried out.
Non-delegable Duty: This duty cannot be contracted out of or delegated by the person carrying out construction work.
Broad Application: The duty of care applies to a wide range of construction work, including building work, design preparation, and supply of building products. It also extends to those who supervise, coordinate, project manage, or have substantive control over the work.

Insurances (Section 2.3 of the Practice Standard 2024):

Adequate Insurance: Engineers must not carry out professional engineering work without adequate insurance.
Evidence of Insurance: They must provide evidence of insurance to NSW Fair Trading upon request.
Coverage Types: Insurance can be an individual, partnership, or corporate policy.
Policy Requirements: The policy must indemnify the engineer for liability incurred while registered and performing work on behalf of a company or partnership.
Considerations for Adequacy: When determining adequacy, factors such as the nature of work, volume of work, registration duration, estimated claims, financial capacity, and policy terms must be considered.
Seek Advice: Engineers are advised to seek independent financial or insurance advice as needed.

Design and Construction Obligations

Professional Engineers have critical obligations during the design and construction phases of a project. The coordination process during the design phase is crucial, as this is when all drawings are developed and overlaid to form the basis of the building's construction. Proper coordination among all key stakeholders, in accordance with the DBP Act, Regulation, and Practice Standard (2024), ensures a smooth construction process with minimal errors.

During construction, it is expected that the approved drawings, Performance Solutions, and coordinated design have been thoroughly reviewed and approved by the respective Professional Engineer. This allows the builder to confidently follow the plans, knowing that compliance with the approved design will be achieved without the need for rework.

Professional Engineers' obligations during the construction phase also include inspecting the works being undertaken to ensure the approved design is implemented on-site. This provides the opportunity to identify any inconsistencies with the design and offer appropriate advice to rectify them before they become critical issues in the construction phase.

Conclusion

The implementation of the New Practice Standard (2024) is set to enhance the overall quality of buildings by enabling Professional Engineers and Builders to coordinate their designs from the inception phase through to the end of construction. This ongoing collaboration ensures that necessary input is provided throughout the process. Effective coordination among key stakeholders has proven to mitigate non-compliant designs and reduce difficulties during the construction phase, ultimately leading to more successful project outcomes.

References

Fair Trading. (N.D.). Practice Standard for Professional Engineers. https://www.fairtrading.nsw.gov.au/trades-and-businesses/construction-and-trade-essentials/DBP-regulated-buildings/professional-engineer/practice-standard-for-professional-engineers/_nocache