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Councils Struggle to Rein in Dodgy Builders Causing Property Damage

By Yellow Van

Dodgy developers and unscrupulous builders are encroaching on neighboring properties, breaching stop-work orders, and causing nearby homes to collapse or crack, as Sydney councils urge residents to report the worst offenders.

Waverley Mayor Paula Masselos has highlighted multiple cases where builders caused significant damage to neighboring buildings, including subsidence, cracks, and structural instability from demolition activities in Sydney’s eastern suburbs.

“For many developers, a $6000 fine is a minor cost that’s simply factored into doing business,” Masselos said, underscoring the challenge of enforcing building regulations.

In the 2021-22 period, Waverley Council received 444 complaints related to illegal building activities. A council spokesperson noted that while most developers follow the rules, some engage in unauthorized works that can have severe consequences for neighboring properties and tarnish the construction industry's reputation.

A residential building project in Bondi Beach has been a long-standing source of frustration for the council and local residents, including Lee Wright, who has been impacted by the development next door.

Northern Beaches Council also reported a rise in complaints, with 2768 cases of illegal development or land use in 2021-22, up from 2596 the previous year. "If anyone is concerned about illegal building works or land use, we urge them to contact the council so we can investigate,” said Ray Brownlee, the council's chief executive.

The City of Canterbury Bankstown reported similar complaints but noted that current legislation prevents councils from issuing orders to rectify damage caused to neighboring properties as a result of standard building works. In such cases, property owners are left to resolve issues through civil litigation.

One particularly troubling case involves a residential project in Bondi Beach, where resident Hayley White described how builders began demolishing a house next door without notifying her. "They demolished the entire house, leaving only the facade," White said. She also reported that excavation works to create a basement damaged her fence and encroached on her property.

White’s neighbor, Lee Wright, estimated that his property has suffered $15,000 worth of damage since demolition and excavation work began. “There are cracks in the walls, damaged front doors, and issues with the front stairs,” he said.

Waverley Council has been monitoring the Bondi Beach site closely, noting that the demolition was not authorized under the complying development certificate (CDC) issued by a private certifier. In August, the council issued three penalty notices, and a private certifier ordered a halt to all work.

Masselos pointed out that, while the council can shut down a site and issue fines, the penalties are often minimal compared to the profits developers make, making it a small price to pay. "For many developers, this is just a cost of doing business," she said.

Concerns about private certifiers have grown since the partial collapse of a house in Bondi Beach in 2020. Masselos stated that when councils had direct responsibility for site certifications, incidents like these were far less frequent.

Amid increasing worries about overdevelopment in Sydney’s eastern suburbs, the council has introduced new measures, including requiring social impact assessments for certain projects and funding a $100,000-per-year community planning advocate to support residents in challenging development proposals.

A spokesperson for NSW Fair Trading said the government is confident it has the necessary tools to oversee the work of private and council certifiers effectively. However, Labor’s Better Regulation spokesperson, Courtney Houssos, criticized the lack of government oversight, noting that only one building certifier was added to Fair Trading’s disciplinary register in 2021-22, despite receiving 370 complaints.

“Dodgy certifiers are leaving homeowners to foot the bill for shoddy building work,” Houssos said. She called for stronger monitoring and enforcement to ensure that property owners are not left bearing the financial burden of rectifying poorly built homes.