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New Building Legislation Changes Passed by NSW Parliament: A Comprehensive Overview
Discussion started by Adam Rangihana 3 months ago
New Building Legislation Changes Passed by NSW Parliament:
A Comprehensive Overview
In November 2023, significant amendments to building legislation were passed by the New South Wales (NSW) Parliament, marking a pivotal moment in ongoing efforts to reform the construction industry. These changes aim to enhance regulatory frameworks, bolster consumer protection, and foster trust and confidence in residential buildings across the state. Here’s a detailed breakdown of
the key revisions:
1. Anywhere, Anytime Inspection Powers Expansion:
Who Does This Change Impact?
Builders, tradespeople, and homeowners involved in residential construction projects governed by
the Home Building Act (1989).
What You Need to Know:
Under the updated legislation, site inspections of residential buildings, including freestanding houses and terraces, no longer necessitate the lodging of a building dispute with regulators. Inspections may now occur at any time and any location where residential building work is being undertaken. This expansion of inspection powers aims to ensure compliance with building standards
and enhance build quality.
Inspectors are empowered to enter residential premises under construction or where construction work is ongoing to assess compliance and identify potential defects. Rectification orders may be issued for defective work, and stop work orders may be imposed to prevent harm or loss to the public or occupants.
2. Anti-Phoenixing Laws:
Who Does This Change Impact?
Applicants for, and holders of, contractor licenses in the residential construction sector, particularly those with a history of intentional phoenixing.
What You Need to Know:
To combat intentional phoenixing—a practice where companies evade responsibilities by liquidating and re-emerging under a new entity—the legislation introduces stronger measures. The regulator is now empowered to refuse license applications, cancel existing licenses, or disqualify individuals involved in insolvent companies within the past decade. This shift places greater responsibility on applicants to demonstrate financial stability and integrity.
3. Decennial Liability Insurance and Strata Building Bond Inspection Scheme:
Who Does This Change Impact?
Consumers, developers, builders, and insurers involved in Class 2 apartment building projects.
What You Need to Know:
Decennial Liability Insurance (DLI) offers coverage for defects in strata apartment buildings for a period of 10 years, providing protection beyond the cessation of developer or builder operations. Additionally, changes to the Strata Building Bond and Inspection Scheme (SBBIS) aim to enhance consumer protection by increasing the bond rate from 2% to 3% of the total construction cost.
4. New Suspension Powers:
Who Does This Change Impact?
Certifiers, design practitioners, building practitioners, and engineers registered under relevant acts.
What You Need to Know:
The legislation introduces strengthened suspension powers to address dangerous conduct among registered practitioners. Registration holders may be immediately suspended pending disciplinary action if they engage in behavior posing significant harm while under investigation.
5. Building Products Safety:
Who Does This Change Impact?
All stakeholders involved in the building product supply chain.
What You Need to Know:
Reforms set to be implemented in 2025 introduce a chain of responsibility, imposing new duties on manufacturers, suppliers, designers, and tradespeople to ensure compliance and safety of building products. These measures enhance accountability and empower regulators to issue warnings, recall non-conforming products, and investigate safety concerns. For further inquiries regarding these legislative changes, individuals can contact the Building Commission NSW at 13 32 20.
In conclusion, the enactment of these legislative reforms signifies a proactive approach by the NSW Parliament to address critical issues within the construction industry, ultimately aiming to safeguard the interests of consumers, enhance building standards, and restore confidence in residential properties across the state.
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