Performance report (non-financial) 2021-22

Registration

Registration is an important regulatory function that controls entry to the profession and provides assurance to consumers that architects possess a high standard of education and experience, adhere to prescribed standards of professional practice and hold Professional Indemnity Insurance.

Qualifications for registration

Individuals seeking registration as an architect in Victoria must have been engaged for not less than two years in practical architectural work and attained a standard of professional practice satisfactory to the ARBV. The Act makes provision for the main pre-registration pathway being the Architectural Practice Examination (APE) for this purpose, as it allows candidates to be tested on their practical knowledge. The APE has been adopted by all Australian state and territory architect registration boards, providing national consistency in pre-registration examinations.

The APE is the most common pathway to registration and is held twice in each calendar year. The other pathways to registration are administered by the AACA and include the Experienced Practitioner Assessment (EPA) – for both overseas experienced and locally experienced individuals and overseas mutual recognition (APEC and US architects).

The fit and proper person (FPP) requirements for registration (first introduced in July 2020) requires registrants to answer questions related to their fitness to practice. FPP is determined during the registration assessment and can help to provide initial insights into the risk profiling of a regulated entity. This initial understanding of risk profiles provides useful information to inform education and monitoring of newly regulated entities.

ARBV has also introduced an enduring declaration at renewal for registrants to provide details of changes in their registration related to the FPP requirements contained in section 10A of the Act.

While continuing to deliver registration business as usual services, the emphasis in 2021-22, consistent with the overall organisational strategy, has been to deliver enhancements to the registration function. This has included:

• Working to ensure that registration pathways remain nationally consistent.
• Reviewing and developing policies and procedures as part of the implementation of the regulatory strategy and to ensure they meet legislative requirements.
• Collaborating with the AACA and other architect registration boards to implement improvements to relevant registration and examination procedures and processes.
• Overseeing the accreditation processes administered by the AACA.
• Managing the Continuing Professional Development (CPD) process, including the implementation of the mandatory CPD declaration.
• Managing compliance with PII requirements.
• Reviewing and improving record management for registrant records.
• Laying the foundations for an audit mechanism to detect unapproved companies, for implementation in the coming year.
• Improving communications regarding the registration renewal process and the overall regulatory framework.
• Contributing content for the ARBV Update provided quarterly to registrants.

Compliance with Professional Indemnity Insurance requirements

Section 8B and 8C of the Act require practising architects to be covered by professional indemnity insurance that complies with requirements set out in the Architects Insurance Ministerial Order of February 2020. The Board audits compliance with this requirement and suspends the registration of architects who fail to comply. The CRM now enables more efficient auditing of compliance with insurance obligations.

In 2021-22, the Registration team implemented a targeted strategy to audit compliance with professional indemnity insurance requirements and ensure architects meet statutory requirements. Over 3,000 incidences of non-compliance were detected with most incidences relating to a failure to provide a copy of the PII certificate of currency to the ARBV. Further compliance work is planned in the coming year.

Registration renewal

The ARBV has continued to improve communications about the renewal process to promote compliance by registrants with the 1 July date for payment of prescribed annual fees. The introduction of the CRM system has improved the overall renewal process and allowed registrants to be more actively engaged with their compliance obligations for renewal and more widely their registration obligations for PII.

Where the prescribed fee is not paid by the due date (which may be extended in agreed circumstances, e.g. through the Financial Hardship Policy) ARBV may initiate steps to suspend the registration of the regulated entity. If a regulated entity fails to pay their registration renewal, ARBV may suspend their registration.

Numbers of suspensions relating to non-payment of annual fees since 2018-19 are as follows:

Notes:

1. Registrants required to pay annual fees: architects (practising), approved companies and approved partnerships.

Registration and Architectural Practice Examination Statistics

Notes:

1. Partnerships were previously combined with companies for reporting purposes.
2. Changing of Registration Class was first reported on in 2018-19.

Notes:

1. Due to changes in recent years in how we record Non-Practising registrants on the Register of Architects the total in 2020-21 appears greater. This primarily relates to the treatment of Non-Practising registrants holding inactive status.

Notes:

1. Partnerships were previously combined with companies for reporting purposes.

Notes:

1. Due to coronavirus (COVID-19) only one APE session was completed in the financial year 2019-20 leading to the postponement of 223 candidate examinations.

Notes:

1. Suspensions were not previously reported prior to 2018-19.

Complaints and Investigations

The ARBV Complaints and Investigation function exercises the regulatory powers of the Architects Act 1991 (the Act) to maintain the standards and integrity of the profession of architecture, to protect consumer interests and to promote the importance of registration. The Act enable the ARBV to investigate matters on its own initiative or on the complaint of any person.

In 2021-22, the ARBV continued to enhance its data analysis capability by integrating historical complaints and Tribunal inquiry outcomes and introducing a complaints issue categorisation in its CRM. As a result, the ARBV has been able to refine its risk profiles and understanding of systemic or emerging issues. Information generated from the ARBV’s enhanced data analysis has facilitated:

• Design of evidence-based and targeted proactive regulatory activities
• A more efficient investigation and risk assessment function
• Participation in regulatory and industry forums to share insights and learnings
• Increased ability to support information sharing with other building regulators

The ARBV has also updated its complaints handling policy and procedure to include, amongst other things, key performance indicators and timeframes for complaints handling and a distinction between assessment and investigation phases.

These enhancements allow for improved handling and prioritisation of complaints to maximise timeliness and efficiency of complaint handling and communication of outcomes to relevant stakeholders.

Other highlights:

During 2021-22, the ARBV initiated the process of employing its information gathering power under section 17B of the Act in a prohibited conduct investigation.

The ARBV continues to work closely with other building regulators and stakeholders to discuss and address risks in the building and construction industry.

The ARBV conducted proactive regulatory activities by way of:

• Conducting seminars to potential registrants about the advantages of registration
• Engagement with local councils regarding architect compliance with planning requirements
• Drafting of information sheets for consumers and architects
• Engaging with the Victorian Building Authority and the Domestic Building Dispute Resolution Victoria
• Preparing webinars for practitioners on key competency issues, such as managing project costs and client expectations, maintaining client relations and the common pitfalls of client architect agreements

Professional Conduct of Architects

Architects must demonstrate professional standards and conduct that are competent and professional. This includes but is not limited to fulfilling the obligations detailed in the ‘Victorian Architects Code of Professional Conduct’ (contained within the Architects Regulations 2015).

The Code sets out requirements architects must comply with relating to:

• standards of conduct
• skills and knowledge
• approval of documents
• contracts and agreements with clients
• administering a building contract for a client
• professional fees and costs
• provision of information to clients
• retaining documents and record keeping
• maintaining confidentiality of client information
• disclosing conflicts of interest, referrals, and endorsements
• engendering confidence in and respect for the profession
• maintaining standards and integrity of the profession.

Following an investigation, the ARBV may determine that an Architects Tribunal inquiry should be held into an architect’s professional conduct and/or fitness to practise. If the Tribunal finds allegations against an architect proven, it may make determinations against the architect that include cautions, reprimands, mandatory further education, registration conditions, and suspension or cancellation of registration. The ARBV is required to enforce any determinations made by the Tribunal.

The Act provides that:

• a person whose interests are affected by an ARBV determination not to refer an architect’s conduct or fitness to practise for inquiry may apply to the Victorian Civil and Administrative Tribunal for a review of that determination
• an architect may apply to the Victorian Civil and Administrative Tribunal for a review of an Architects Tribunal determination concerning them.

In 2021-22, the ARBV’s complaint data indicates that the highest incidence of complaints about professional conduct related to the following complaint issues:

• deficient client architect agreement
• failure to provide services with due skill, care and diligence
• incompetent design or specifications
• inappropriate billing practice

The ARBV has used this complaints data to inform the revision of its proactive strategic plan 2022-23 and delivery of proactive regulatory activities in the coming year.

Prohibited Conduct

To be an architect, a person must be registered with the ARBV. The education and experience required for registration, coupled with the professional conduct obligations and continuing professional development and professional indemnity insurance requirements, contribute towards maintaining the integrity of the profession and providing consumer protection.

If a person or body is not registered with the ARBV, they are not an architect in Victoria. If a person or body represents themselves or allows themselves to be represented as an architect, they are in breach of the Act’s prohibited conduct provisions.

Breaches of the Act’s prohibited conduct provisions may be prosecuted in the Magistrates Court of Victoria by the ARBV.

In 2021-22, the ARBV has implemented a targeted strategy in relation to regulating the use of controlled terms and ensuring that representations made about being an architect are true and correct. On 30 June 2022, several prohibited conduct investigations were underway and the ARBV anticipates that prosecution proceedings may be instituted by the ARBV in the coming year.

Complaints and Investigation Activity Statistics

Notes:

1. Where no values are shown this indicates the category was not previously reported.

2. As part of the ARBV’s refreshed complaints handling policy, general inquiries by way of telephone calls or emails relating to alleged breach of professional conduct are now not counted under “Investigations initiated” unless a complaint is submitted through the ARBV Complaints portal. Some matters are also assessed and do not progress to the Investigation phase. Where appropriate, some matters are referred to an appropriate regulatory or dispute resolution body.

Prohibited Conduct

The Act prohibits representations as an architect by people or bodies who are not architects and enables the ARBV to investigate potential offences and to initiate proceedings in the Magistrates Court of Victoria.

As a consumer protection mechanism, the Act’s prohibited conduct provisions ensure the public can have confidence in an architect’s:

• qualifications, skills, and experience
• professional regulatory requirements
• professional indemnity insurance cover.

During the 2021-22 reporting period 44 potential breaches were investigated.

Notes:

1. Prosecutions initiated were first reported on in 2018-19.
2. Where no values are shown this indicates the category was not previously reported.
3. In 2021-22, the ARBV introduced an assessment phase prior to a matter being investigated as part of its refreshed complaints handling policy. As a result, values for “Investigations initiated” will be lower for 2021-22 compared to previous years.
4. As part of the ARBV’s new complaints handling policy, general inquiries by way of telephone calls or emails relating to alleged prohibited conduct are now not counted under “Investigations initiated" unless a complaint is submitted through the ARBV Complaints portal. Some matters are also assessed and do not progress to the Investigation phase. Where appropriate, some matters are referred to an appropriate regulatory or dispute resolution body.

Tribunal

Professional conduct and/or fitness to practise inquiries are conducted by the Architects Tribunal which is independent of the Board. A Tribunal is constituted as required, from a panel of suitably qualified people appointed by the Minister and approved by the Governor in Council.

An Architects Tribunal is constituted as follows:

• one panel member who is a practising architect
• one panel member who is not an architect
• one panel member who is a representative of consumer interests.

At least one member of a Tribunal is to be a person with legal experience and knowledge.

If the Architects Tribunal finds allegations against an architect proven, it makes determinations regarding penalties and costs.

The ARBV is required to enforce the determinations made by the Tribunal.

Number of new cases referred to the Tribunal for inquiry in 2021-22 – 1

Number of inquiries finalised in 2021-22 – 5

Regulatory Outcomes

The proactive and reactive regulatory activity undertaken by the ARBV outlined in this section support the ARBV’s regulatory objectives to:

• promote and maintain high standards of professional conduct and practice
• restrict who can represent themselves as architects
• ensure only suitably qualified entities are registered and approved
• ensure compliance with insurance requirements
• maintain professional accountability of architects
• support architects to fulfil their duties and to engender confidence in and respect for the profession
• encourage and support voluntary compliance.

In this regard, a focus by the ARBV on proactive regulatory activities and increasing awareness and understanding of relevant compliance obligations by regulated entities through education and assistance supports voluntary compliance and helps promote high standards of professional conduct and practice are achieved in architect interactions with clients and other stakeholders. The support provided by the ARBV to architects (e.g., access to educative and guidance material) to help them comply thereby instils confidence in the profession among relevant stakeholders, including the public.

The ARBV’s reactive regulatory activities such as providing a procedure for handling complaints against architects ensures that architects are being held accountable for their professional conduct and practice thereby protecting consumers and upholding the high standards of integrity in the professional practice of architecture. Similarly, restricting who can represent themselves to be an architect and the use of particular expressions helps to protect consumers by allowing them to source competent and qualified architects over unregistered persons, who may lack the qualifications or competencies to deliver safe and compliant building work. Consumers are also able to engage architects with the knowledge that registration requires them to be covered by professional indemnity insurance.

Sponsorships, Grants and Awards

Consideration of grants and sponsorships by ARBV must be linked to the objective of the advancement of architectural education as set out Section 59(1) of the Architects Act 1991 and cognisant of ARBV's principal role as a regulator.

From time to time the ARBV supports programs or activities that advance continuing education and learning for practising architects, as a collective group, and which aim to address one or more of the following:

• encourage continuous improvement in professional competency, conduct and integrity
• drive awareness of risk associated with the provision of architectural services and/or promote risk mitigation
• deliver improved compliance with the regulatory regime for architects leading to strengthened consumer experience and confidence in the Victorian architectural regulatory framework.

Consideration of grants and sponsorships by ARBV also consider whether proposals:

• raise awareness of and increase positive regard and understanding for ARBV’s role as a regulator
• build stronger relationships with and encourage participation by stakeholders.

In 2021-22, the ARBV operated in an environment of strict expenditure control to maintain a small operating and cash surplus. No sponsorships or grants were approved by the Board in the reporting period.

Architectural Student Professional Practice Awards

The Architectural Student Professional Practice Awards are in recognition of the importance of education linked to the professional practice of architecture. Recognising ARBV’s important consumer protection role, awards are provided each year to the top 4^th or 5^th year student in a professional practice subject demonstrating the highest level of performance in this field and are available at the five Victorian schools of architecture. Recipients receive a grant of $1,000 as a contribution towards the student’s further studies or professional development. Four students received awards in the reporting period.

Statement of Expectations

The revised Statement of Expectations (SOE) framework, issues by the Minister for Planning in July 2021 for the period to June 2023, included the following performance improvements and targeted outcomes n which an update on progress is provided.