A HISTORICAL PERSPECTIVE ON THE EPISTEMOLOGICAL EVOLUTION OF EDUCATION FOR OCCUPATIONAL LICENSING IN THE CONSTRUCTION INDUSTRY

H. Antoniades1

1Senior Lecturer, University of Technology Sydney

ABSTRACT

In New South Wales, Australia, there are prescribed educational requirements for occupational licensing within the built environment. An important consideration for the government in this regard is the underlying need to provide consumer protection. Therefore mandated occupational licensing and continuing professional development are key components within government policy. This research paper reviews the literature for continuing professional development within the built environment. Concurrently, data under the Home Building Act 1989, relating to enforcement and prosecutions during the last decade in New South Wales are examined and discussed. Issues such as the purpose and intent for education, complexity of skills required and industry experience and an appropriate course curriculum are embedded within the discussion. It is argued that whilst improved CPD requirements best serve the needs of the consumer and prescribed education should be maintained, there is also the consideration that consumer protection cannot be solely addressed though an educational curriculum.

Keywords:consumer protection, curriculum, education, industry experience.

INTRODUCTION

For many years, the various states within Australia have regulated the licensing of practitioners in the construction industry. Initially, legislation delivered a loose assemblage of educational requirements for the diversity of skills necessary for the construction industry to carry out the appropriate discharge of their duties. Occupational licensing was not accompanied by compulsory education but this has gradually changed to increasing requirements in this area. In parallel there has been an increasing awareness of consumer protection, thus demanding the tightening of licensing requirements including its sub-parts.

At present licensing is managed under the auspices of individual state and territory Fair Trading Offices and these individual regimes have followed historical patterns reflecting the ad hoc and inconsistent development of the regime. Historically, during 1971, New South Wales introduced mandatory licensing for all home builders, under the Building Licensing Act; and licences for associated trades was introduced in 1977 and onwards. Mandatory formal education was later introduced, although in the earlier years, a long history of industry experience was considered the equivalent of formal education. The Office of Fair Trading (2011) summed up the need for occupation licensing by stating that compulsory licensing “ensures unqualified or inappropriate people do not undertake work in the areas of residential building and specialist trades”. To this end from the inception of occupational regulation in New South Wales there was an expectancy for builders to be accountable for the quality of their workmanship and transparency for the stakeholder. Additionally apart from licensing, there are other ways the government intervenes to protect consumers.

For instance, the Home Building Act 1989 provides for insurance warranty and the establishment of a dispute resolution process for the purpose of providing assistance to the stakeholders. Therefore, defective building work and disputes regarding the satisfactory completion of the contract, is considered an important consumer protection mechanism and is a key feature of the regulatory system. Even so, it is notable that in order to get this protection, consumers have a duty of care to select a licensed contractor or otherwise they are not entitled to insurance protection – hence they must be active in acting according to a continuous chain set up by government consumer protection protocols.

Life-long learning is critical to the development and commitment of all professions. This ensures the maintenance and proficiency of the professional to competently carry out their duties and maintain consumer protection and accountability. The introduction of compulsory CPD in 2004 also raised questions with regards to the relevant and important topics, content and delivery of the educational syllabus. Fair Trading introduced a point system to monitor the compliance requirements. The introduction of compulsory CPD was aimed at “....maximising consumer protection outcomes, maintaining public confidence....raising the quality of building and construction standards, improved safety....”. (Office of Fair Trading 2009).

Currently the revised CPD program is a simplified method, with the introduction of a broader range of topics, and includes the involvement of industry experts and training providers. Additionally, many professional bodies mandate CPD as part of their ongoing membership renewal process and it is possible to have CPD requirements for professional membership crossing over to meet the requirements for Fair Trading.

The first part of this paper discusses the literature for CPD for occupational licensing. The review is complemented in the second part of the paper with statistical and descriptive data relating to prosecutions and enforcement procedures under the Home Building Act 1989. The purpose of this research is to identify if parallel trends exist between CPD and consumer protection. It is argued that whilst improved CPD requirements best serve the needs of the consumer and prescribed education should be maintained, there is also the consideration that consumer protection cannot be solely addressed through an educational curriculum.

LITERATURE REVIEW

The learning environment for education in Australia has been identified as an important consideration when engaged in CPD activities (Boyd 2005). Suggestions include integrated problem based workshop activities and industry engagement as a practical option for the development of multi-skilled professionals. Many researchers acknowledge the importance of updated information for technology combined with the development of decision making skills as a worthy outcome. Indeed literature is quick to state that CPD broadly encompasses a life-long learning process, and is for the benefit of all stakeholders and society in general.

During this last decade many professions and professional bodies have introduced compulsory CPD with an underlying aim to help serve public interest and strengthen the individual image for the professions. CPD includes a “lifelong learning function” (Collins & O’Brien 2003) and is the “maintenance of knowledge, expertise and competence of professionals throughout their careers” (O’Sullivan 2003). This is further reiterated by Cervero (2001) who stated that “...incorporation of continuing education into accountability systems for professional practice” has increased. Equally political agendas have been cited (Young 1998) as the motivation for compulsory CPD however arguably with the increase in consumer complaints withinthe construction profession it can be stated that the Australian government is well justified with their intent to introduce compulsory CPD. Furthermore Young (1988) stated that the public were concerned with the professions and the employers inability to police and train their staff adequately. A survey undertaken in 1988 (Young 1998) supported mandatory CPD for many reasons including “protection against liability”. Indeed many insurance companies consider the non compliance of CPD a contributing factor to the high litigation claims.

In America, CPD is now serviced by the professional associations, professional practices, the licensing agencies, non-profit organisations and commercial firms (Monograph 2006) for the licenses and certificates of registration. This is very similar to Australia also, where CPD can be carried out by Universities, Registered Training Organisations and relevant professional associations. Similarly, research for CPD for secondary school teachers (Knight 2002) recommended the involvement of Universities for the delivery of CPD arguing that this would enhance a “stronger intellectual substance than commonsense and hard manageralism.” There has been a widespread introduction of compulsory CPD in the accountancy, legal, medical, and engineering etc (Cervero 1988) professions worldwide. Research undertaken in 1990 (CerveroAzzaretto 1990) reiterated compulsory CPD as a popular choice for licence and certificate renewals. This reasoning has also been reflected in the South African real estate industry where the government has introduced training and entry requirements for their sector to promote knowledge, ethics, a professional image and improve communication between all stakeholders (Robinson 2008).

The real estate market in New Zealand is considered to comprise a “more sophisticated, better-educated profile of vendors and purchasers”’ hence the demand for advanced real estate qualifications in New Zealand (Crews 2004). For these reasons salespeople participate in CPD and are offered a variety of delivery methods, such as block mode delivery, and an interactive, learning environment enhanced and cemented with the contents and academic rigour combined with industry input. Research indicates in some cases an unwillingness to participate in CPD programs citing the costs and value for money as some of the reasons (Crews 2004). However, it is very important that knowledge is current and constantly up-dated.

In the 1980s various professional bodies started to introduce their own policies for CPD (Crews 2004). However because construction professionals in Australia require a licence through a legislative structure, it was not until the early 2000’s that discussions commenced for compulsory CPD, which were eventually introduced in 2004.

As we enter into a new decade there have been varied schools of thought to justify the need for CPD. For example does CPD enhance existing knowledge? Where is the benefit for the different stakeholders? Were there problems in professional practice prior to compulsory CPD? Is the benefit aimed at a financial reward for the training provider only? i.e. is there a notion that training providers have a vested interest? Interestingly, research and literature indicates professional associations, universities and governments have a “clear responsibility” for the development and introduction of courses and methods for CPD in the general professions (Cervero 1988).

The importance of “interprofessional skills” where a professional taps sources from other professions is highlighted (Barr 2009) with suggestions of activities via journals, or to join a reading group, distance learning and e-learning. However, the argument presented also expressed concern with the importance for “grounding in practice” and “quality of interaction”. A popular suggested education method appears to be the inclusion of workshops which include problem solving techniques, seminars, conferences, courses, self directed learning etc to provide a blended learning environment (Brown & Uhl 1970; Green et al 1984; Houle 1980; Knox 1974; Miller 1967).

Various sources of literature continues to express concern with methods available to assess the measurement of performance, and various approaches such as observation, oral examination, self-report, peer evaluation, and the use of consultants are recommended (GonnellaZeleznik 1983). This difficulty to measure performance was reiterated by Botticelli and Anderson (1981); Goran, Williamson and Gonnella (1973); Levine and McGuire (1970); Payne (1978). Whilst education for licensing can provide the students with a foundation course of study, the knowledge and the skills and opinions acquired rapidly date (Farmer & Campbell 1997; Roberts 1991; Watkins & Drury 1994). The richness of the CPD must ensure that education is not just a mass production of accumulated hours or points to satisfy merely the licensing requirements.

It is generally accepted that CPD can bridge the gap between formal education and practice through professional socialisation (Page 2007; Farmer & Campbell 1997; Roberts 1991) and the using of problem-solving skills to perform effectively (Cross 1969; Escovitz 1973) and the introduction of specialisation will enhance “education and training beyond the basic professional degree of license” (Lowenthal 1981;Ball 1991; Pritchett 1994). This is further summarised by researchers (RegehrMylopoulos 2008) who favour CPD from practictioners own personal experiences such as problem solving by reflection and self assessment, recognition of the gaps in knowledge, undertaking appropriate learning activities, and translating these new skills into daily professional practice and the continuous reassessment of performance.

The introduction of CPD also raises questions with regards to the relevant and important topics and content of the educational syllabus; documented studies in the property sector support this notion (Hovell 1999; Newell & Eves 2000; Fischer 2000; Boyd 2000; Avdiev 2000; Yu 2001; OloyedeAdegoke 2007). Ideally, the CPD should be structured within a framework to monitor and record the relevant topics included as a component of the educational system. The next section of the paper discusses the research method approach followed by the analysis and discussion.

RESEARCH METHODOLOGY AND LIMITATIONS

As stated previously the aim of this research paper is to examine and undertake a textual analysis of the current CPD mandated for the construction industry. The first stage of the research discusses the literature for CPD for occupational licensing. The second stage of the research identifies data relating to prosecutions and enforcements under the Home Building Act.

Therefore, the paper will focus on the following research questions:

1. Why have prosecutions and enforcement procedures in the construction industry continued to prevail and increase during the last few years.

2. Are there recommended topics/subjects which should be incorporated in CPD so as minimise this risk, and therefore improve consumer protection. In other words, are there any subjects which are considered core and essential in the life-long learning process for the individual.

Because each jurisdiction in Australia has varying licensing and educational requirements, the second stage of the research was limited to the state of New South Wales, Australia, as it is beyond the scope of this paper to include all states and territories. Furthermore, only data relating to prosecutions and enforcements under the provisions of the Home Building Act 1989 are considered. The reason being, that occupational licensing is regulated by this legislation under the auspices of Fair Trading NSW. The data has been extracted from the annual reports issued and published by the Office of Fair Trading NSW and is recapitulated in both statistical and descriptive formats.

DISCUSSION AND ANALYSIS

Over the last few decades regulation and educational requirements for the building industry have increased, driven by the desire and need to improve consumer protection. Formal education and CPD is aimed to provide new knowledge, information, meet legislative requirements for licence and certificate applications and renewals, maximise consumer protection, maintain public confidence and reduce disputes in the building industry. Specialist topics are also included for the different licence and certificate categories, where the OFT considers this to be a high risk area. For example, some of the current recommended risk areas for CPD include sustainability, compliance responsibilities, safety, building technical issues, communication techniques, dispute resolutions and business management skills. This section of the paper provides data relating to compliance activities and prosecutions.

Penalty notices are an enforcement tool, which is available in a range of statutes, including the home building legislation. The entity served with the notice is able to pay a fine rather than to have the alleged offence dealt with in a court. If the detected breach in the legislation is straightforward to detect without any questions of intent, then the penalty notice is issued, otherwise the matter will need to be dealt with in court. Therefore, penalty notices are also issued for minor breaches and these are included in table 1 below. The table shows the penalty notices and successful prosecutions for the financial years commencing from 2002 to 2014. An analysis was undertaken of the total penalty notices issued and the successful prosecutions. (In the financial year 2013/2014 the success rate for prosecutions was approximately 95%- Fair Trading 2014).

Trends recently indicate a decrease with penalty notices issued and a leveling of the value associated with this infringement; likewise successful prosecutions have decreased in numbers and also in value. However, from 2002 there was a steady increase of compliance enforcement, which peaked during 2006 to 2008. It is not possible at this stage to predict whether the decline will continue, as previous records also showed a peak during 2003 to 2005, followed by a decline and then yet again another peak. Since the introduction of compulsory CPD in 2004 the figures do not appear to indicate any steady improved trend, rather the indication in the table below favours cyclic increases and decreases.

TABLE 1 - COMPLIANCE ENFORCEMENT

FINANCIAL YEAR / PENALTY NOTICES / VALUES
$ / SUCCESSFUL PROSECUTIONS / VALUE
$
2002 - 2003 / 246 / 104,250 / 47 / 71,547
2003 - 2004 / 664 / 293,650 / 115 / 134,225
2004 - 2005 / 703 / 270,150 / 86 / 161,160
2005 - 2006 / 341 / 159,500 / 88 / 204,460
2006 - 2007 / 813 / 595,800 / 141 / 313,583
2007 - 2008 / 561 / 502,000 / 173 / 269,561
2008 - 2009 / 676 / 611,150 / 124 / 299,482
2009 - 2010 / 426 / 383,050 / 106 / 171,882
2010 - 2011 / 500 / 413,700 / 37 / 66,983
2011 - 2012 / 458 / 484.800 / 125 / 384752
2012 - 2013 / 327 / 322,750 / 116 / 313,962
2013 - 2014 / 377 / 365,000 / 130 / 296,850

Source: Office of Fair Trading Annual Reports each year from 2002

However, government policy is to reduce red tape and compliance costs and to maintain an appropriate level of consumer protection. Policy makers will continually implement strategies to improve consumer satisfaction and protection.There are varying learning activities suggested by government, all aimed to develop the required skill set and knowledge and competencies for relevant topics. Learning activities are measured in a variety of methods such as the time allocated for the activity, journal entries for time spent on reading published materials such as journals and professional articles. The implementation and monitoring of CPD appears to be a reflection of the quality of the training and the adoption of the National Training framework and concerns arise over these educational requirements and perhaps also the better monitoring of CPD topics.

Currently, the data which details the type of complaints leveled at the building industry has listed poor workmanship at the top of the list. Therefore, it would be an obvious choice to select CPD topics along these required skill-set. If workmanship could be improved, this would lessen the complaint burden from consumers, and reduce penalties and prosecutions. Therefore, the question arises why these cause of complaints have not been addressed by Fair Trading and industry. However, at times there might be a perception from the building industry that the professional bodies have a vested interest to support compulsory CPD. Some courses are very expensive and there has been an attitude of “tick and flick” to enter the applied hours into the log book, and not concerned with acquiring knowledge and participating in the training sessions. Some professionals perceive that there is little value attached to CPD and upgrading their skills and knowledge. Whilst the OFT does not limit quality assurance only to the CPD learning environment, their investigators also carry out random inspections and examinations for individual CPD compliance. As indicated earlier in this paper, the Home Building Act provides for severe penalties and disciplinary action for misconduct and falsely declaring CPD compliance. Therefore, with a cyclic increase in penalty notices and prosecutions, together with the increase of complaints lodged against the building industry, ongoing research into this problematic area is required before rendering definite conclusions.