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AIG Reports Non-Conforming Building Products in the Construction Industry

January 27, 2014 0 Comments

AIG Report on Building ProductsA new report from the AIG claims that the use of non-conforming building products in the Construction Industry is widespread.

As discussed previously, the Civil Construction Industry is one of three major parts of the construction industry and so it is equally affected by a new research report published by the Australian Industry Group (AIG).

The report claims that there is currently widespread use of what are described as “non-conforming products” across the whole of the building industry in Australia and the various sectors that make up the industry. The report is titled: The Quest for a Level Playing Field.

It highlights the dilemma that is posed by the use of non-conforming building products and was the result of a comprehensive survey of 220 individuals and organisations from across the manufacturing, fabrication, supply and building industries.

The key issues that have been highlighted are from products being used which do not meet industry or regulatory standards. In addition is the ongoing use of products that are not fit for their intended purpose, are not of acceptable quality, or contain false or misleading claims.

This is a serious concern not only to the Civil Construction Industry but across the entire Building and Construction Industry and no doubt more will be heard on these matters.

Innes Willox, AIG chief executive, said: “New AIG research reveals an extremely large proportion (92%) of companies responding to our survey reported non-conforming products in their supply chains. This raises important questions about quality and safety, and it poses serious commercial challenges for the businesses that do play by the rules.

“Almost half of businesses surveyed (45%) reported lost revenue, reduced margins or lower employment numbers due to non-conforming products in the steel, electrical, glass and aluminium, and engineered wood sectors.

“The impact of non-conforming products is a major concern for industry and this report clearly suggests the need to reform the current system to ensure quality and safety, and to ensure Australian importers, manufacturers and fabricators have a level playing field.”

The AIG research document has several proposals to attempt to address the issues. These include the need for both government and industry to promote and support the role of regulatory bodies in policing the industry and also how to raise awareness on how to report a product non-conformance.

Keep referring to this website for updates on information that will impact the Civil Construction Industry.

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