A statutory registration

scheme for Victorian

engineers
Consultation paper
The Secretary
Department of Treasury and Finance
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Melbourne Victoria 3002
Australia
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Contents

Introduction ............................................................................................................ 1
Consultation questions ........................................................................................... 3
1. The engineering sector in Victoria .................................................................... 4
2. Why the Government is moving to register engineers ...................................... 4
3. Proposed features of an engineers’ registration scheme .................................. 7
3.1 Identifying a high level regulatory model ........................................................................ 7
3.2 Appropriate regulatory features ...................................................................................... 8
3.2.2 Eligibility requirements .................................................................................................. 8
3.2.3 Types of licence/registration .......................................................................................... 9
3.2.4 Registration process ..................................................................................................... 9
3.2.5 Conduct requirements ................................................................................................. 10
3.2.6 Offences ..................................................................................................................... 12
3.2.7 Enforcement and monitoring ....................................................................................... 12
3.2.8 Discipline .................................................................................................................... 12

4. Categories of engineering to be included in a registration scheme ................. 13

4.1 Broad coverage ............................................................................................................ 13
4.2 Targeted scheme ......................................................................................................... 13

5. A definition of regulated engineering work ...................................................... 16

6. A system that keeps pace with technology ..................................................... 17
Attachment 1 – Engineers Australia categories ..................................................... 18

Page i
Introduction

Engineers provide a critical service to the economy. Engineering advice is fundamental to many
industries including the construction, aeronautical, chemical, manufacturing and electrical
industries. Many of the major infrastructure projects the Government is pursuing and that are
occurring in the private sector rely heavily on specialist engineering advice.

Despite the important role that they play in the economy, the vast majority of engineers are not
required to hold any kind of formal registration or license. This stands in stark contrast to almost all
other professionals, including lawyers, doctors, nurses, architects and teachers. This regulatory gap
creates unnecessary risk. Some engineers involved in smaller scale residential developments are
currently required to be registered – but this requirement does not apply more broadly.

While the majority of engineering advice is provided to a high standard, there are instances where
an engineers’ registration scheme would assist to raise standards across the profession and reduce
the risk of loss and harm to the public.

A high profile example where poor engineering oversight was a contributing factor was the Esso
Longford gas explosion, but there have been other incidents of injuries and near misses in
construction projects where the quality of engineering advice or oversight may have contributed to the
outcome.

In addition, there are a number of emerging trends which justify examination of stronger regulatory
arrangements. The increasingly globalised nature of the engineering profession means that many
firms undertake work across national borders. This trade in engineering services is beneficial, but it
is important that, where engineering advice relates to projects affecting Victorian residents,
regulatory arrangements ensure there is appropriate scrutiny and sign-off of that advice.

Similarly, the construction of components for large projects increasingly occurs in foreign
jurisdictions. Since the use of these materials can involve considerable risk, it is important that
appropriate testing of these materials occurs before they are used. Strong regulatory arrang ements
are important in supporting engineers’ central role in these testing regimes.

For these reasons, the Government has publicly committed to the “…introduction of a mandatory,
statutory registration scheme and [to] work with other jurisdictions to deve lop a nationally consistent
registration scheme for engineers” to raise standards across the engineering profession and reduce
the risk of harm and loss to the public.

It is intended that any registration scheme for Victoria’s engineers will be designed so as to promote
the professional development and recognition of one of Victoria’s most important professions; a
profession which is central to any future improvements in productivity and economic development
for the Victorian community.

The Government is keen to work with stakeholders to ensure that future arrangements provide
maximum benefits to Victoria without being burdensome to the engineering sector or business more
generally.

A statutory registration scheme for Victorian engineers – Consultation paper Page 1

The benefits of a mandatory engineer registration scheme include:
 protecting the safety of the community through an assurance of appropriate standards and
competency in engineering advice;
 enhancing the standing of the engineering profession in the community;
 increasing the capability of engineers in Victoria through more rigorous enforcement of
professional development resulting in higher quality, more innovative services;
 improving opportunities for the export of engineering services from Victoria by making it clearer
to international purchasers of engineering services that Victorian engineers and firms comply
with internationally agreed professional standards;
 assisting the retention of highly skilled and competent engineers in the Victorian workforce
 providing a clearer career pathway for engineering graduates to move into professional
engineering careers; and
 providing tangible support and endorsement for a key element of the Government’s STEM
agenda.
Arrangements for the registration of engineers vary across Australia. In Victoria, current registration
requirements apply only to certain engineers working in the domestic building and construction
industry under the Building Act 1993.

This initial stage of consultation covers the proposed basic requirements and coverage of an
engineers' registration scheme and will include consideration of registration arrangements in place
in other jurisdictions.

Upon resolution of these questions, further consideration will be given to detailed conduct
requirements and implementation issues, including the housing of any regulatory body.

Comments on the consultation paper are invited by Thursday 29 September 2016 to

anjana.singh@dtf.vic.gov.au.

A stakeholder roundtable will be convened by the Hon Daniel Mulino, MP, Parliamentary Secretary
for Treasury and Finance, on Tuesday 20 September 2016.

Registration is required to attend the roundtable. Please register your attendance to

anjana.singh@dtf.vic.gov.au.

Page 2 A statutory registration scheme for Victorian engineers – Consultation paper

Consultation questions

Question 1: What benefits and opportunities are likely to arise from a more highly skilled
engineering workforce? (page 7)

Question 2: What eligibility requirements (such as qualifications and experience) are

appropriate for registration to undertake engineering work? (page 8)

Question 3: What types of registration or license should be included under an engineers’

registration scheme? (page 9)

Question 4: What is the appropriate period of registration renewal for engineers? (page 10)

Question 5: What role should professional engineering associations have (if any) in the
registration process? (page 10)

Question 6: How important is skills maintenance/continuing professional development (CPD) for

the engineering sector and to what degree is appropriate CPD reflected in current
practice? (page 12)

Question 7: What is the most appropriate and practical approach to ensuring that necessary
skills and knowledge are maintained? (page 12)

Question 8: How is the need for skills maintenance/ CPD being impacted by the current pace of
technological change across industry sectors? (page 12)

Question 9: Would it benefit consumers and the industry for the regulator to have a complaints -
based investigation power? What disciplinary actions should be available to the
regulator? (page 13)

Question 10: What is an appropriate basis for determining coverage of a statutory engineering
scheme? If category-based, what engineering categories should be included?
(page 16)

Question 11: Is Queensland’s definition of professional engineering services appropriate for a

Victorian scheme? (page 16)

Question 12: Given the social, economic and technological context, do you have a general view
on how a registration scheme could assist to:
(a) Develop and grow the profession, including in relation to Victoria’s export
opportunities; and
(b) Build the resilience of the engineering profession in the face of the
technological change currently occurring? (page 17)

A statutory registration scheme for Victorian engineers – Consultation paper Page 3

1. The engineering sector in Victoria
1
Currently, approximately 90,000 engineers are employed in Victoria. Engineers work
across the entire economy, playing a particularly prominent role in the construction,
manufacturing, mining and utilities sectors. The breadth of the role played by engineers is
reflected in the fact that most are engaged in the services sector.

Engineers underpin our standard of living by translating advances in scientific theory into
the infrastructure, goods and services that Victorians use every day. In playing this role,
engineers are central to driving greater innovation and productivity growth.

In Victoria, engineers also generate a key services export. Engineering is increasingly

being globalised, with international supply chains and highly technical, specialised sub -
disciplines. As the leading jurisdiction in Australia for the export of technical services,
Victoria is well placed to play a leading role in the development of internationally
competitive firms that can offer a growing number of high wage jobs.

Some engineers who work in the building and construction industry are required to be
2
registered under the Building Act 1993 (Building Act). This Act covers around 2,300
engineers who work on smaller residential construction projects. Engineers working on
larger construction projects are not required to register. This discussion paper will not
explore engineers’ registration requirements under the Building Act which are currently the
subject of a separate review.

2. Why the Government is moving to register

engineers

The Government has committed to establish a registration system for engineers. This will
provide assurance to the community that regulated areas of engineering work are
undertaken to a high standard, while providing a strong underpinning for Victoria to
become a leader in the delivery of engineering solutions and innovations.

The supply of professional services such as engineering services is typically characterised

by a high degree of information asymmetry. Consumers are reliant on the professional
engineer to:
 identify the nature of the task;
 determine the most appropriate way to undertake it; and
 provide the services needed to ensure the task is completed to the appropriate
standards.
The technical nature of engineering work may raise health and safety and economic risks
to the public if not undertaken by suitably qualified individuals to an appropriate standard.

1 Using estimated growth rate based on a mid-point of the growth of engineers in Victoria between 2006 and 2011, and
growth of Victoria’s GSP between 2005-06 and 2014/15 found at
http://www.engineersaustralia.org.au/sites/default/files/shado/Resources/the_engineering_profession_a_statistical_o
verview_11th_ed._october_2014.pdf and
http://www.abs.gov.au/AUSSTATS/abs@.nsf/Latestproducts/5220.0Main%20Features22014-
15?opendocument&tabname=Summary&prodno=5220.0&issue=2014-15&num=&view=
2 http://www.vba.vic.gov.au/__data/assets/pdf_file/0006/35619/Annual-Report-VBA-2014-15.pdf

Page 4 A statutory registration scheme for Victorian engineers – Consultation paper

 Registration, certification and licensing requirements are a means to set minimum
standards for engineers who are either providing professional services to consumers
based in Victoria or who are exporting professional engineering services from Victoria .

Mandating appropriate standards through a compulsory statutory registration scheme will

have a number of benefits, including:
 Protecting the safety of the community through an assurance of appropriate
standards in engineering advice. While engineering services are generally being
provided to a high standard in Victoria, there have been some instances of sub -
standard advice resulting in project failures, accidents and near misses. In addition,
there are a number of emerging risks that warrant more comprehensive regulatory
arrangements. These include the outsourcing of engineering services to poorly
regulated economies and imported products requiring engineering oversight.
 Increasing the capability of engineers in Victoria through more rigorous enforcement of
professional development thereby resulting in higher quality, more innovative services.
Engineers play a critical role throughout the Victorian economy, including in the
construction, manufacturing, mining and utilities sectors. There is significant scope for
enhanced professional development by engineers to contribute to innovation and
productivity.
 Improving opportunities for the export of engineering services from Victoria by
improving the standards of advice. Victoria is the leading jurisdiction in Australia for
the export of technical services, which includes the export of services by professional
engineers. In order to maintain this leading role, Victoria should explore regulatory
arrangements for engineers that are consistent with the majority of our leading OECD
trading partners, most of which have some form of mandatory registration. Registration
of engineers exporting their services out of Victoria will assure importers of our
engineers’ compliance with well-recognised and internationally understood
professional benchmarks.
 Providing a clearer career pathway for engineering graduates. A well designed
registration scheme should provide engineers with a clearer pathway for advancing
from graduation through to more experienced positions with greater responsibility. The
Government is keen to develop regulatory arrangements that provide benefits to
individual engineers as well as to the consumers of engineering services.
 Providing tangible support and endorsement for a key element of the
Government’s STEM agenda. Engineers’ current regulatory arrangements stand in
stark contrast to almost all other professions, including doctors, nurses, lawyers,
teachers and architects. A well designed registration scheme will correct this anomaly
and boost the standing of the profession – an outcome that would be consistent with
the government’s broader pro-STEM agenda.

Submissions into the last Commonwealth Parliament’s inquiry into meeting innovation and
creativity needs of the labour force reinforce the benefits of a highly skilled engineering
sector, with comments including:
Society implicitly expects engineers to be creative and innovative. Engineers have
special responsibilities to design, build, operate and retire from service, physical and
information-based products, systems and infrastructure. A further implicit expectation is
that any new engineered product, system or infrastructure solution will be the best
3
possible in terms of performance, given cost, environmental and other constraints .

and

3
Australian Council of Engineering Deans, Submission to the Commonwealth Standing Committee on Education and
Employment Inquiry into innovation and creativity: workforce for the new economy, March 2016, p.1

A statutory registration scheme for Victorian engineers – Consultation paper Page 5

 Engineers are employed in almost every industry in Australia because practically every
good and service traded in Australia domestically and internationally embodies the
services of engineers. We believe that scientists and other researchers will be critical to
discover the bright ideas that underpin innovation. But engineers are essential to
develop new ideas into working prototypes. Engineers are also critical to commercialise
new prototypes into forms suitable for the market place. Without these contributions,
new ideas will not translate into tangible economic benefits to consumers and
4
businesses, and through them, to our economy.

economic opportunities can flow from a highly skilled and innovative engineering
workforce. Victoria is home to a large number of professional engineers practising in
sectors across the economy including construction, manufacturing and utilities. The
contribution of engineers is reflected in the strong performance of sectors in which
professional engineering services are a key input.

The contribution of professional engineers in Victoria is also reflected in Victoria’s position

5
as Australia’s leading jurisdiction for the export of technical services, as shown in Figure 1.

Figure 1: Service exports by state: architectural, engineering, scientific

and other technical services
800

700

600
Trade credits

500
($ millions)

400

300

200

100

0
2010-11
1998-99

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2011-12

2012-13

2013-14

2014-15
1999-2000

VIC NSW QLD SA WA ACT

A registration scheme for engineers will build on Victoria’s comparative strengths as an

exporter of technical services, providing enhanced quality assurance for foreign and
interstate procurers of Victorian engineering services. In 2013-14, Victoria remained the
6
only net engineering exporter of the States and Territories. Architectural, engineering,

4
Engineers Australia, Submission to the Commonwealth Standing Committee on Education and Employment Inquiry into
innovation and creativity: workforce for the new economy, March 2016, p.8.
5
Tasmania and the Northern Territory have been omitted from the chart as their export credits are close to zero. New South
Wales, Queensland and South Australia data was not published for 2006-07.
6
https://www.engineersaustralia.org.au/sites/default/files/shado/Resources/services_exports_2015.pdf

Page 6 A statutory registration scheme for Victorian engineers – Consultation paper

 scientific and other technical services have comprised at least 20 per cent of Vic torian
business services international exports from 1999 to 2008, but has declined in more recent
7
years.

In our key OECD trading partners, such as Singapore, Malaysia, Japan, Korea, Indonesia,
and the United States of America, engineers are generally required to maintain registration
if they provide professional services. The absence of a comprehensive regulatory scheme
in Victoria could place exporters at a comparative disadvantage.

The specific arrangements in place in key trading partners include:

 In Korea, Singapore, and many States of the USA, registration of all engineers is
required.
 Registration requirements are extensive in Malaysia and Japan, with high ongoing
skills and knowledge maintenance requirements and mandatory CPD.
 In Indonesia, engineers working in the construction sector are required to be
registered.
 Licensing to practice as a professional engineer is required in Canada and South
Africa.

Consultation question 1: What benefits and opportunities are likely to arise from a
more highly skilled engineering workforce?

3. Proposed features of an engineers’ registration

scheme

There is a multitude of options available in designing industry regulation schemes. In

developing regulatory arrangements for Victorian engineers, the aim is to deliver the
regulatory outcomes being sought, whilst not duplicating work already being done by
professional bodies or being excessively burdensome. This includes considering
registration arrangements elsewhere (namely Queensland’s co-regulatory system) to
facilitate engineers working across different jurisdictions.

One approach is to firstly identify an appropriate regulatory model (say, based on

comparable professions) and to then discuss specific features of the model in more detail.

3.1 Identifying a high level regulatory model

There is a range of rationales for government regulatory intervention in occupations or
professions. The greater the risk, the more compelling is the case for comprehensive,
prescriptive regulatory intervention. For example, where there are safety risks to the public
from unlicensed or substandard work (as is the case for example for building and electrical
work), a more comprehensive regulatory regime would be expected than in cases where
the main objective is to provide better information to buyers of regulated services.

7
Source: ABS - International Trade in Services by Country, by State and by Detailed Services Category, Calendar Year,
2014

A statutory registration scheme for Victorian engineers – Consultation paper Page 7

 For any regulated profession or occupation, there is likely to be multiple rationales or
objectives for government intervention. The primary rationale for intervening in the case of
engineering in Victoria is to increase public confidence that minimum standards are being
met.

3.2 Appropriate regulatory features

While registration schemes have standard features, the appropriate comprehensiveness
(and associated regulatory burden) of these features varies depends on the intervention
rationale. These regulatory features are examined in more detail below.

3.2.2 Eligibility requirements

This aspect of the regulatory arrangements relates to the requirements for an individual to
be eligible for registration and would cover, at a minimum:
 Qualifications: that is, what would constitute an engineering qualification relevant to
the category of regulated work to be undertaken; and
 Practical experience: for example, the amount of time required to be spent working
under the supervision of a registered engineer before an engineer is eligible to apply
for registration.
In some schemes, applicants for registration are required to demonstrate their knowledge,
for example by sitting a test or examination, of relevant legislative provisions and technical
matters.

Occupational or business licensing eligibility requirements may include a character or ‘fit

and proper person’ test which may refer, for example, to relevant criminal or financial
history. Dishonesty offences may be appropriate for some professions, particularly where
there is a high amount of interaction with vulnerable consumers. In the case of engin eers,
it may suffice for an applicant to attest that she or he will comply with a professional code
of conduct (which can then be tested in the event of a complaint).

Registration may also be dependent on holding relevant insurance (as a mandatory form
of risk management in the event of something going wrong). Architects in Victoria are
required to provide a certificate of professional indemnity insurance cover and this may
also be appropriate for engineers. However, where a registered engineer is an emplo yee
of a registered engineering company, they would only be required to show that their
employer holds the required insurance. Given providers and procurers of engineering
services will normally hold insurance, the case for mandating insurance as an eligib ility or
conduct requirement does not appear to be strong.

Where accreditation requirements within a professional engineering body are identical to

those for a statutory registration scheme, it may be possible to fast track the registration
process (for example by allowing accreditation by certain professional bodies as a partial
pathway to registration).

Consultation question 2: What eligibility requirements (such as qualifications and

experience) are appropriate for registration to undertake engineering work?

Page 8 A statutory registration scheme for Victorian engineers – Consultation paper

3.2.3 Types of licence/registration
Depending on the scope and/or complexity of work performed, registration schemes would
be expected to have various types of licence/registration available. An engineering scheme
would be expected to include:
 Full registration: with qualification and experience eligibility criteria that could vary
depending on the type of engineering work to be performed. A scheme could allow
unlicensed and/or unregistered engineers to operate under a fully registered
supervisor; and
 Non-practising registration: this category of registration could allow currently non-
practising engineers to remain registered, while prohibiting them from performing
regulated work.
There may be merit in having restricted trainee or graduate licences (meaning that any
work performed is supervised by a registered engineer), which might serve to provide a
clearer pathway to full registration.

Some occupations include contractor or business registrations, which focus more on

financial probity than technical competency. Given a high proportion of engineering work is
contracted between large businesses (as opposed to small businesses and sole traders),
contractor registration may not be necessary. In line with the current effective operation of
the profession, individual registrations are considered sufficient for engineers as opposed
to allowing more complex arrangements, such as allowing businesses to be registered with
individual technical nominees.

In short, it is proposed that registration be restricted to technical registration (which will

always pertain to the individual) and not business registration (which may be undertaken
by individuals or groups, provided they use registered engineers to undertake regulated
work). Such an approach focuses on licensing the individual, while not precluding
engineering companies (which would need to employ or otherwise contract registered
engineers to undertake regulated work) or unregistered engineers performing engineering
work under appropriate supervision of fully licensed/registered engineers.

Consultation question 3: What types of registration or license should be included

under an engineers’ registration scheme?

3.2.4 Registration process

This involves the steps required of an applicant to gain registration. This can include
aspects such as knowledge tests, interviews and a period of supervision for graduate or
trainee engineers. It is proposed that registration renewal would be required periodically, at
which time attestation of compliance with any conduct requirements (discussed further
below) may be required. Given the compliance burden associated with frequent renewals,
a 3-year renewal period might provide an appropriate balance.

The registration process could involve an application to a regulator, along with info rmation
regarding eligibility criteria and an application and/or registration fee.

Co-regulation

Given the role of professional bodies in the engineering sector, a co-regulatory

arrangement may give scope for these bodies (as opposed to – or as well as – the
regulator) to assess eligibility for registration. This is currently the case in Queensland. A
co-regulatory regime could be designed so as to considerably reduce the overlap of
responsibilities and administrative burden between professional bodies and the regulator.

A statutory registration scheme for Victorian engineers – Consultation paper Page 9

 The Queensland co-regulatory model is based on the establishment of a government
regulator that includes engineering and regulatory experts. This body approves
“assessment entities”, which could include professional bodies. The responsibility for
assessing individual engineers (including the vetting of qualifications and experience) li es
with the approved assessment entities. The government regulator retains a number of
enforcement functions, including a legislative power to prohibit individuals from being
registered or being able to continue to work and the power to undertake disciplinary
proceedings and prosecutions for non-compliance.

The fact that many practising engineers are already members of the key professional
bodies that have been accredited as assessment entities in Queensland means that
considerable duplication is avoided in the registration process. This duplication can be
avoided in the co-regulation model as the regulator does not need to undertake the
detailed vetting of individual engineers where that has already occurred as part of the
professional association membership process.

Comparable, albeit non mandatory arrangements, occur elsewhere, with Engineers

Australia vetting engineers before they are able to be included on the National Engineers’
Register (NER). Engineers Australia is also approved as an assessment ent ity under the
Queensland scheme.
Modelled on the Queensland regime, a statutory co-regulatory scheme in Victoria could
involve the establishment of a government regulator to oversee registration and
disciplinary aspects, but with the assessment of each individual’s qualifications and
experience carried out by assessment entities approved by the regulator. Such an
approach would involve the establishment of a new government approval authority, but
would draw upon, rather than duplicate, assessment functions already undertaken by
professional engineering bodies.

Such an approach would also provide strong incentives for:

 assessments to be rigorous, with assessment bodies and schemes authorised and
audited by the regulator (imposing financial and reputational risks on those bodies);
and
 price competition and innovation where applicants are able to choose between multiple
assessment entities.
If, under such an approach, the government regulator was also able to undertake the
assessment function, this could create greater flexibility for applicants, including those who
are not members of professional bodies.

Consultation question 4: What is the appropriate period of registration renewal for

engineers?

Consultation question 5: What role should professional engineering associations

have (if any) in the registration process?

3.2.5 Conduct requirements

This involves the ongoing obligation to maintain registration. For regulated professions,
this commonly includes skills maintenance, also known as continued professional
development (CPD), which is discussed further below, and adherence to an industry code
of conduct.

Page 10 A statutory registration scheme for Victorian engineers – Consultation paper

 Some regulated occupations are also required to hold insurance. However, in the case of
engineering, there should already be sufficient commercial incentives for contracting
parties to hold insurance (for instance, many tenders require minimum levels of insurance
coverage), rather than having to mandate such practice.

Consistent with existing best practice, compliance with a professional code of conduc t – to
be developed jointly by a regulator and the profession – will be given consideration as an
ongoing requirement of registration.

Given a key objective of this scheme is to enhance standards and the standing of the
profession, it will be important that, subsequent to registration, individuals maintain their
skills and knowledge. This will boost domestic and international export opportunities by
enhancing the adaptability, innovation and technical skill of the profession.

Continuous professional development

CPD is the participation of a professional in formal and informal training so as to maintain

existing skills and learn new knowledge and skills that are relevant to a professional’s area
of practice. The amount of time required to effectively undertake CPD will vary depending
on the nature of the profession and the area of practice. CPD will be particularly important
in areas where practices are evolving rapidly due to technological change or innovation.

The requirement to undertake a minimum amount of CPD may be a key conduct

component of any registration scheme. CPD is critical to enhancing the skills of the
profession and a minimum CPD requirement is commonly adopted in most professional
registration schemes around the world.

This is particularly important for Victoria as an exporter of professional engineering

services given that there are widely agreed international benchmarks for appropriate levels
of CPD by practicing engineers.

Engineers who are currently members of professional organisations are required to comply
with ongoing CPD. These CPD requirements are generally aligned with international
standards. Approaches to including skills maintenance or CPD as a conduct requirement
include:
 Mandating CPD requirement in legislation;
 Requiring engineers to demonstrate that they have satisfactorily maintained a required
skills; and/or
 Including skills maintenance in a professional code of conduct.
The first of these options may be overly onerous and duplicate roles already performed by
professional bodies. The efficacy of the third option (including CPD in a professional code
of conduct) is less onerous, but may not provide sufficient compliance inc entives (for
example, where the regulator only audits compliance with a professional code of conduct
as part of an investigation triggered by a complaint).

Given the existence of professional bodies that provide CPD-related services to their
members, one approach to ensuring skills maintenance could be:
 legislating that engineers maintain their skills;
 recognising the role of professional bodies as providers of CPD, while providing
flexibility for an applicant to demonstrate compliance by alternative means; and
 articulating clear expectations of what skills maintenance means in a mandatory Code
of Conduct.

A statutory registration scheme for Victorian engineers – Consultation paper Page 11

 There are a number of possible approaches for ensuring that CPD requirements are
complied with. The regulator or professional bodies could conduct CPD audits, or there
could be a requirement to demonstrate skills have been maintained as part of the
registration renewal process. The importance placed on skills maintenance in disciplinary
hearings, particularly if this is linked to a professional code of conduct, would also provide
a strong incentive to comply.

Consultation question 6: How important is skills maintenance/continuing

professional development (CPD) for the engineering sector and to what degree is
appropriate CPD reflected in current practice?

Consultation question 7: What is the most appropriate and practical approach to

ensuring that necessary skills and knowledge are maintained?

Consultation question 8: How is the need for skills maintenance/CPD being

impacted by the current pace of technological change across industry sectors?

3.2.6 Offences
This aspect of the regulatory scheme would deal with actions undertaken by an individual
engineer that are considered unlawful and/or punishable by a court. Relevant offences in
this context could include performing regulated engineering work while not registered,
holding out to be registered or providing false information (or failing to report) to the
registering authority.

3.2.7 Enforcement and monitoring

All registration schemes require an appropriate level of enforcement and monitoring activity
to encourage good conduct and provide some assurance to the community that laws are
being complied with. Where risks to the community or to consumers are significant, this
may involve routine inspections and/or compliance audits. Where risks are not as
significant, investigations would be expected to be triggered primarily by complaints or
suspected non-compliance (noting that a regulator would have the opportunity to
effectively assess past compliance upon renewals of registration).

3.2.8 Discipline
A regulatory scheme would provide the regulator with a range of actions that could be
directed at a registered person (for example, in response to a complaint) in the event of
non-compliance to rectify poor performance or correct behaviour. Disciplinary action may
be triggered by a complaint regarding an engineer and would typically follow a ‘show
cause’ investigation process. Findings of a disciplinary investigation would be appealable.

Page 12 A statutory registration scheme for Victorian engineers – Consultation paper

 In the context of an engineers’ registration scheme, it is proposed that disciplinary actions
would follow a ‘show cause’ process, with options available to the regulator to include:
 Written warnings;
 Undertakings to do or not do something;
 Imposition of conditions on registration; and
 Suspension of cancellation of registration.

Consultation question 9: Would it benefit consumers and the industry for the
regulator to have a complaints-based investigation power? What disciplinary
actions should be available to the regulator?

4. Categories of engineering to be included in a

registration scheme

A critical question when considering a Victorian engineers’ registration scheme concerns

coverage.

4.1 Broad coverage

One approach would be to include all engineers (with the exception of those engineers
currently regulated by the Victorian Building Authority) regardless of risk or experience
elsewhere. Engineers would need to register under their specific field of engineering to be
able to carry out work in that field.

The engineering disciplines covered by Engineers Australia, the Board of Professional

Engineers of Queensland, as well as overseas jurisdictions, are provided in Attachment 1.
A registration scheme based on any of these sets of disciplines would have broad
coverage within the profession.

A broadly based scheme would ensure that registration and associated conduct
requirements apply to all or almost all practising engineers, irrespective of the field of work
being practised or industry employed in. Such an approach may be excessively
burdensome, with a targeted scheme (for example, based on the risks associated with the
work being performed) likely to be more proportionate and cost effective, and better
targeting the enhancement of public safety.

4.2 Targeted scheme

Table 1 provides an international comparison of areas covered by engineering registration
schemes. Some of these schemes are targeted in their scope.

Some engineering work, where it relates to domestic building, is already regulated by the
Victorian Building Authority (VBA). The engineer categories registered by the VBA, where
they relate to domestic building work, include civil, electrical, fire safety and mechanical
engineers.

A statutory registration scheme for Victorian engineers – Consultation paper Page 13

 (a) Fields of engineering work

One option, based on the current membership of Australia’s key professional bodi es
and the current risks associated with different areas of practice by engineers would
be include the following disciplines within a registration scheme:
 Mechanical and manufacturing engineering
 Civil engineering
 Electrical engineering
 Aerospace and aeronautical engineering
 Naval Architecture and marine engineering
 Industrial engineering
 Computer Systems engineers (involved in critical infrastructure such as utilities)
 Chemical engineering
 Structural engineering
 Environmental engineering
 Materials engineering
(b) Industry sector

An alternative approach would be to base an engineering scheme on regulated work

8
undertaken in key industry sectors , with possible priority areas being:
 Mining
 Manufacturing
 Electricity, gas, water and waste
 Construction
 Transport
 Consulting and professional services
The latter approach could be less burdensome and could be aligned with the export
destinations of Australia’s engineering services, especially in south-east Asia (see
Table 1 below).

The need to broaden the scheme to cover further areas of engineering could be
reviewed after the scheme has been in operation for some time, for example, five
years.

Countries with co-regulatory approaches include New Zealand and Canada.

8
Sourced from: Engineers Australia, The Engineering Profession in Victoria, Sep 2014

Page 14 A statutory registration scheme for Victorian engineers – Consultation paper

 Table 1: Registration Coverage of Engineering Industries across International
Jurisdictions

Country Engineering industry

Singapore Civil (and Structural), Mechanical, Electrical, Electronic Aeronautical,
Marine, Naval Architecture, Manufacturing (and Production), Industrial,
Information Technology and Computer Engineering
Malaysia Services provided by Professional Engineers – encompassing feasibility
studies, planning, survey, design, construction, commissioning, operation,
maintenance and management of engineering works
Japan An engineer conducting business on matters including planning, research,
design, analysis, testing, evaluation, guidance thereof which require
advanced adaptive expertise in science and technology
Korea Services in planning, research, design, analysis, investigation, test,
execution, supervision, evaluation, diagnosis, test run, business
management, technical judgment, and engineering arbitration
Indonesia Registration of engineers in construction sector
Vietnam Covers all construction-related engineering practice (structural, electrical,
sanitary, mechanical, electronics, communications, geo-technical).
New Zealand Co-regulatory model involving protection of chartered professional engineer
title and industry body as registration authority
Covers aerospace, bioengineering, building services, chemical, civil,
engineering management, electrical, environmental, fire, geotechnical,
industrial, information, mechanical, mining, petroleum, structural, and
transportation.
United States of America State Specific – Example for California:
(USA) Civil, Electrical, Mechanical engineering

Canada Co-regulatory approach, with all engineers (broadly defined) required to be

licensed by professional bodies, which have legislative authority.

(c) Risk-based

One of the key rationales for mandating registration is to ensure that engineering
work is carried out to a sufficiently high standard so as to effectively manage the risk
of harm to the public and the environment and to mitigate the risk of significant
economic loss. Therefore, it may be appropriate to define the scope of the regulatory
regime in terms of the risk of the professional service being provided.

Options for defining the coverage of a registration scheme include:

 Covering all engineering work. This would pick up all types of engineering work,
regardless of the degree of risk involved in the work.
 Identifying specific disciplines or sectoral categories of engineering work. This
would focus on more complex or higher risk disciplines or sectoral categories.
However, this may be problematic given that all or most disciplines or sectoral
categories would be likely to involve an element of high-risk work (resulting in
broad coverage, as with the first option).

A statutory registration scheme for Victorian engineers – Consultation paper Page 15

  Linking registration to the risk profile of work being undertaken. Under this
approach, engineers would need to be registered in cases where a failure to
provide engineering services to a high standard would expose the public or
environment to significant risk, or has the potential to cause significant economic
loss. Such thresholds would need to be articulated in legislation (or a legislative
instrument), as is the case for thresholds for holding mandatory insurance. Risk
thresholds for registration would carry some risk of subjectivity in determining
coverage and hence, of non-compliance. However, there would be strong
commercial incentives for engineers to become registered, such as making them
more competitive and being able to access insurance more easily and affordably.
 A combination of categories and a risk assessment/materiality threshold for
borderline engineering categories. For instance, ICT engineers may not be
included in a scheme except for where they are engaged in critical infrastructure,
utilities, or other sectors where the risk of economic loss to the community (which
could be articulated through a dollar threshold) in the event of failure is high.

Consultation question 10: What is an appropriate basis for determining coverage of

a statutory engineering scheme? If category-based, what engineering categories
should be included?

Given the propensity for technological change and innovation across the fields of
engineering and how this impacts on engineering work, it is proposed that licence
categories and definitions of regulated work be prescribed in regul ations, or a similar
legislative instrument, rather than through amending primary legislation.

5. A definition of regulated engineering work

Not everyone with engineering qualifications and/or working in the engineering occupations
will necessarily be directly involved in undertaking professional engineering work. Under
all of the registration options above, the tasks for which registration is required will need to
be clear.
In Queensland, the requirement to be registered is established in the Professional
Engineers Act 2002. The Act defines professional engineering services as:

an engineering service that requires, or is based on, the application of engineering

principles and data to a design, or to a construction, production, operation or
maintenance activity, relating to engineering, and does not include an engineering
service that is provided only in accordance with a prescriptive standard.

Consultation question 11: Is Queensland’s definition of professional engineering

services appropriate for a Victorian scheme?

Page 16 A statutory registration scheme for Victorian engineers – Consultation paper

6. A system that keeps pace with technology

The engineering profession, like many others, is being impacted by rapid technological
change and advances in theory. This change is reflected in many ways, including: the
increasing use of software as a key component in engineers’ work ; in the increasing
tendency for the scope of an individual engineer’s work to cut across multiple engineering
disciplines; and in rapid changes in materials engineering. Engineers are also being
affected by a number of broader societal and economic factors.

Consultation question 12: Given the social, economic and technological context, do
you have a general view on how a registration scheme could assist to:

(a) Develop and grow the profession, including in relation to Victoria’s export
opportunities; and

(b) Build the resilience of the engineering profession in the face of the
technological change currently occurring?

A statutory registration scheme for Victorian engineers – Consultation paper Page 17

Attachment 1 – Engineers Australia categories

 Computer engineer  Civil engineering

 Aerospace engineering  Chemical engineering

 Agricultural  Environmental engineering

 Building services engineering  Geological

 Electrical engineering  Materials engineering

 Marine engineering  Mechanical engineering

 Minerals and Metallurgical engineering  Mining engineering

 Software engineering  Coast and Ocean engineering

 Biomedical engineering  Industrial engineering

 Risk engineering  Mechanical and Manufacturing engineering

 Agricultural engineering  Resource engineering

The Board of Professional Engineers of Queensland categories:

 Aeronautical engineering  Heritage and Conservation Engineering

 Aerospace engineering  Information Technology and Telecommunications engineering

 Agricultural engineering  Information Telecommunications and Electronics engineering

 Biomedical engineering  Inspection of Amusement Rides and Devices

 Building services engineering  Management engineering

 Chemical engineering  Marine engineering

 Civil engineering  Mechanical engineering

 Civil – Public Works engineering  Metallurgical engineering

 Computer Systems engineering  Mining engineering

 Electrical engineering  Naval Architecture

 Environmental engineering  Petroleum engineering

 Fire Engineering  Pressure Equipment Design Verifier

 Fire Safety engineering  Structural engineering

 Geotechnical (mining) engineering  Subdivisional Geotechnics engineering

 Geological engineering

Page 18 A statutory registration scheme for Victorian engineers – Consultation paper