Defence Housing Australia (DHA) has gone to market seeking developers to build 900 homes across Canberra, Sydney, Newcastle and Nowra while mandating banned engineered stone in these new builds.
If the builds were carried out as specified, this would put DHA - one of Australia's largest landlords and property developers - in breach of the law, along with any builder it partnered with.
A document included as part of the expressions of interest, published last week, sets out the minimum standards the Commonwealth corporate entity requires for new builds, "with the aim to deliver quality housing that is region and climate appropriate".
In the kitchen and bathroom sections, the document mandates "20 millimetre thick reconstituted stone benchtop".
The Housing Industry Association, the peak body for Australia's residential building industry explains engineered stone is also known as reconstituted stone.
A spokesperson for Safe Work Australia said engineered stone that contains at least 1 per cent crystalline silica and is created by combining natural stone materials with other chemical constituents such as water resigns or pigments and becomes hardened is subject to the ban.
"Where a 'reconstituted stone' product meets the definition of engineered stone, it will be subject to the prohibition on the manufacture, supply, processing and installation of engineered stone benchtops, panels and slabs which came into effect on July 1, 2024."
The ban - agreed to by state, territory and federal workplace health and safety ministers in December 2023 - followed revelations likening engineered stone as the next asbestos.
This followed a series of reports and exposes going back to February 2023, which highlighted the alarming rate of silicosis among stonemasons who worked with engineered stone.
The potentially deadly condition was found in one in four people who work with silica products.
In its advice to ministers that recommended the ban, Safe Work Australia found that there was no safe level of exposure to the inhalable crystalline silica that is produced when engineered stone is cut, shaped and installed.
Since the ban came into effect, organisations that fail to follow the new laws can face fines of up to $42,000 in the ACT and $379,500 in NSW.
CFMEU national and ACT secretary Zach Smith said the ban must be adhered to by all builders, including DHA.
"It's unacceptable and frankly baffling that Defence Housing Australia would mandate engineered stone benches in new builds," he said.
"We expect [DHA] to act immediately to correct this serious mistake, which could kill workers."
After The Canberra Times sent questions to DHA on the afternoon of Friday, July 12 about the reconstituted stone requirement, an addendum was added to the EOI at 8pm that evening that stated DHA was removing the requirement for reconstituted stone benches.
"DHA requires that any new properties delivered only provide compliant stone or engineered benchtops."
A DHA spokesperson said it was compliant with the ban.
"In relation to the prohibition on engineered stone that came into effect on July 1, DHA has updated our property inclusions documents accordingly.
"Safety is our highest priority for our Australian Defence Force members, and we ensure that our projects and building practices align with the latest standards."
What had DHA required?
The DHA requirements for engineered stone benchtops were set out in a Property Inclusions document dated to June 2022 included as an attachment to a current Expressions of Interest for private developers to build 900 homes across the ACT and NSW.
Interested builders or investors can construct the homes to DHA's specifications, with the certainty that DHA would lease the properties for up to 12 years, with the option to extend by another three years.
DHA would then rent the properties to ADF staff.
The EOI is part of DHA's New Builds Volume Leasing Program, where DHA invites builders and investors to provide housing to DHA, located close to defence bases around the country.
A similar EOI is also open for builders in Adelaide, for up to 200 homes, also with the same Property Inclusions document that requires the use of deadly engineered stone.
The union movement had campaigned for the complete ban on engineered stone and ACTU assistant secretary Liam O'Brien said the product would cause serious harm if it was used on a construction site.
"In the way that document is framed it would be at best misleading and would be implying to people to use what is now a banned product."
Depending on the state, there are some transitional arrangements in place along with the blanket ban. In NSW, engineered stone contracts that were entered into before December 31, 2023 and include installation before December 31, 2024, can continue.
In the ACT, there is no transition period, as the jurisdiction had already implemented significant safety controls prior to the national ban.
What happens now?
DHA is one of Australia's largest landlords and a significant developer of new housing, particularly in areas with a large Defence presence.
As of June 30, 2023, the Commonwealth corporate entity managed just under 17,000 properties under management and a property portfolio valued at over $10 billion.
Mr O'Brien said builders and designers needed to be aware of the ban.
"They need to be updating documents and prescribing safer alternatives."
Despite the ban being a fortnight old, Mr O'Brien said the industry was using alternatives, given the widespread awareness of the dangers of working with the material.
"We need to ensure that the products that we prescribe in these buildings are safe and that we don't use products that cause harm," he said.
"In this case, this product is now banned, and should be taken out of design specifications."
