The NSW State Government has recently released a Draft NSW government Building Bill (2024) and the legislation is currently open for comment. The NSW government Building Bill will significantly impact construction in NSW and I feel that everyone needs to understand its impacts for businesses, individuals and clients.

The intent of the legislation is to:

• improve safety, accountability and transparency
• ensure high-quality design, construction and maintenance
• modernise and simplifying building legislation.

Key Points of the Legislation

A summary of the key changes is detailed below. Specialist advice must be obtained to see if and how the changes affect you.

• Proposed Building Licensing Regime Under the Bill, a person must be licensed or require a person to carry out works under the supervision of a licensed individual under the following types of works:
  • Specialist work (air-conditioning, electrical, plumbing, waterproofing and pre-purchase building inspections);
  • Engineer work (Civil, Electrical, Fire safety, Geotechnical, Mechanical, Structural); and
  • Building work.

If you aren’t already licensed, it is expected that NSW state registration will soon be required. If you are already licensed, check if and how legislation may affect you.

• Expansion of Homeowners Warranty Insurance The Bill expands the Homeowners Warranty Insurance Scheme. Under the new provisions, owners of newly constructed homes can make insurance claims against contractors for defective or incomplete work.

• Duty of Care The Bill defines and expands the duty of care for all types of building work. This duty extends to property owners and subsequent owners, aiming to prevent economic losses caused by defects. It is understood that this encompasses various activities beyond traditional building work such as certification, engineering and property development.

Areas of Design and Construction

• Architects The Australian Institute of Architects determined that “the most significant change to the draft Bill for architects involves the NSW Architects Registration Board. Currently, this Board is a standalone statutory authority reporting directly to the Minister under the Architects Act 2003. If the proposed reforms succeed, the registration system for architects will be integrated into the new Building Bill, and the Architects Act will be repealed”. Advice from the Australian Institute of Architects can be seen here

• Builders In the last week, I understand that either the Housing Industry Association (HIA) nor Master Builders Association (MBA) have not commented on the Draft NSW government Building Bill (2024). I recommend you contact your association for further advice.

• Engineers The most prominent section for engineers covers the Professional Engineering Registration Scheme and its transfer from the Design and Building Practitioners Act 2020 into the proposed Building Bill framework, meaning the engineering practice guidelines under the DBP Act will be applicable for all development. A copy of Practice Standard for Professional Engineers can be obtained here or here.

Further details have been provided on the Institute of Engineers website. The Institute of Engineers is also conducting an online presentation “Changes to the NSW Building Act” on 27 August 2024, details can be seen here.