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How trustworthy is your building?
KPMG and Mirvac are teaming up to track the provenance of buildings that will let insurers and property owners rate the trustworthiness of buildings
Today we announced the launch of a world first product, the Building Trustworthy Indicator which utilises blockchain to measure a building's credentials.
The KPMG Origins Building Trustworthy Indicator (BTI) has recently successfully completed initial trials as the technology is developed via collaboration with the construction industry's early adopters.
Responding to recent high-profile issues in NSW residential buildings, the BTI uses blockchain technology to provide a trusted and immutable source of data about a building from inception then throughout its lifecycle. It stores detailed certification records throughout the development and construction process, including materials and methods used, certifications achieved, and contractor details.
The BTI has been developed over the past 12 months by teams from KPMG Australia, Mirvac, the ASX and Western Sydney University, in collaboration with the NSW Office of the Building Commissioner and the wider construction industry. It aims to allow buyers, insurers and financiers to make more informed decisions and easily identify the more trustworthy buildings.
The BTI complements the recently launched Independent Construction Industry Rating Tool iCirt, developed by Equifax to help buyers distinguish which builders and developers have less risk associated with them based on their financial capability and historical performance.
Laszlo Peter, KPMG Australia partner and head of blockchain for ASPAC said:
“Word of mouth and ‘asking a friend’ who is a trusted developer is no longer adequate to help consumers to make the biggest financial decision of their lives. By solving for the information asymmetry in the sector and assisting regulators, financiers, insurers to focus on the riskiest players or assets we can avoid some of the issues that have plagued the sector both in NSW and across Australia.”
“This innovation is also a new model for public-private collaboration, that can help mitigate costly and difficult-to-implement new regulation. This approach positions standardised data at the heart of construction industry to create greater transparency and reinforce consumer confidence,” he added.
There are currently several buildings that have been deployed on the BTI solution as part of the market testing of the indicator. KPMG will use these buildings to validate the wider market take up within Australia and globally.
The Building Trustworthy Indicator is available for free to developers, builders, suppliers and other construction industry stakeholders who are committed to building trust into the fabric of the residential construction and maintenance sector. It will eventually result in a “star” indicator for residential developments, similar to the Energy Rating for white goods. In time, it is also expected to scale into other jurisdictions across Australia, and beyond.
David Chandler, the NSW Building Commissioner said:
“I am hopeful that the BTI will become a genuinely world-leading piece of work that will help measure the quality and insurability of buildings by identifying which buildings are trustworthy, from measuring compliance with design and construction standards to traceability of materials all the way back to the manufacturer.”
“This innovation is a new model of public-private collaboration. It is my view is that BTI and similar products will help avoid costly and difficult-to-implement regulations. Instead, putting data at the heart of proactive construction industry governance to create greater transparency and build consumer confidence.”
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