iCIRT Market Consultation

iCIRT, the independent construction industry rating tool, is designed to provide an independent assessment of entities operating in the construction industry, having the capability, capacity and willingness to support the delivery of trustworthy built assets.

iCIRT is supported by the continued feedback across the market as we all work together in improving transparency and confidence in construction. Equifax has consolidated this feedback including a number of proposed enhancements designed to further the benefits delivered to all stakeholders. There are four specific changes proposed, including:

1. Presentation of iCIRT rated businesses for a consumer audience
2. Categorisation of iCIRT rated businesses based on their size and scale
3. Utilisation of indicative ratings as a pathway to obtain an official iCIRT rating
4. Additional meta data access for trustworthy constructors

We invite you to consider and share any feedback on these improvements, and welcome any other feedback you may have. Equifax will provide a summary of the feedback received through this consultation, and will share the outcome and timeframes of any subsequent changes.

1) Presentation of iCIRT rated businesses for a consumer audience

Feedback: Industry has shared concerns that a five star rating scale (where the average rating outcome is between 3 to 3.5 stars) erodes consumer confidence and is counterproductive to lifting buyer and investor confidence. As a result, many elect not to disclose their iCIRT rating, thereby limiting market transparency.

Proposed change: To address this concern, it has been proposed that medal colours (ie. gold, silver, bronze) are used in place of star ratings in order to present the overall rating outcome for consumers. Trustworthy constructors are currently assigned three or more gold stars. There is no change to the underlying assessment methodology or stratification of ratings, rather the presentation of the rating outcome for consumers.

Table 1 - Public presentation of rating outcomes

Examples of the new badges, these will continue to be accompanied by a QR code, which enables any third party to confirm the validity of a marketed rating.

Exhibit 1 - Proposed public presentation of gold rating outcome

If this is progressed we recognise this will require a change to the existing use of medal colours (which are currently used to indicate the extent of participation, disclosure and depth of analysis). In the event these changes are progressed, the current use of medal colours will be changed to reflect whether the assessment was a system, indicative or official rating, which is broadly consistent with Equifax’s existing rating classifications.

Table 2 - Distinguishing different rating types

2) Categorisation of iCIRT rated businesses based on their size and scale

Feedback: Industry and the market more broadly has shared feedback there is no discernable differentiation between entities of a different size or scale listed on the public facing register. This has become more pronounced as more and more businesses are added to the register, and early consultation has revealed a strong appetite for a five tier rating scale.

Proposed change: It has been proposed that Equifax publish a framework to inform all market stakeholders of the various tiers, and that the public facing register disclose these tiers to support improved transparency. We understand this will enable businesses to be appropriately categorised with others of a similar size and nature.

Table 3 - Tier based categorised based on size and scale

Where two metrics are used, the rate shall be based on the larger of the two

* Last financial year for the entity/corporate group

✝ Total project pipeline in progress

3. Utilisation of indicative ratings as a pathway to obtain an official iCIRT rating

Feedback: Industry has expressed concern that it may take some time for newer or smaller businesses to obtain an iCIRT rating, and have requested an indicative rating as a pathway to obtaining an official iCIRT rating. 

Proposed change: While these would not be eligible to be displayed on the public facing register of trustworthy businesses, indicative rating recipients would be able to direct stakeholders to an iCIRT hosted webpage (URL or QR code) that validates their indicative rating and relevant information (ie. rating date). This is illustrated in Exhibit 2.

Exhibit 2 - Proposed indicative rating validation page

4) Publication of important information supporting trustworthy constructors

Feedback: There is limited information available to consumers regarding an entity listed on the register of trustworthy building professionals, and there have been many requests to incorporate the region of business operation.

Proposed change: 4a)  Enable linking from an entity displayed on the register of trustworthy building professionals to the summary rating page, which includes meta data as listed in Exhibit 3.

Exhibit 3 - Proposed summary rating page for trustworthy constructors

4b)  Include the region of operation for a rated entity, enabling users of the iCIRT register of trustworthy constructors to more easily identify which businesses operate in their area. This will use an ABS classification framework such as SA4.

Public Consultation: Equifax invites market stakeholders to provide feedback in the form of support, concerns or alternatives to the above proposed changes. All correspondence is to be returned by close of business Monday 31st March 2025, addressed to:

Paul Nissen, Senior Product Manager

paul.nissen@equifax.com

Subject: iCIRT Market Consultation

A summary of all responses received will be published following the close of the consultation period unless you request otherwise. Please clearly and prominently indicate in your submission any part you do not wish to be publicly disclosed. Please note that a standard confidentiality statement in an email message will not be treated as a request for non-disclosure. 

Please refer to our privacy policy at https://www.equifax.com.au/privacy for more information on how we handle personal information, your rights to seek access to and correct personal information, and your right to complain.