The Building Commission NSW is now established and is aimed at regulating the construction industry to restore trust and confidence in all residential buildings in New South Wales.
The Building Commission NSW (Commission) was established in December 2023 as the regulator of the residential construction industry in the State. The Commission is led by NSW Building Commissioner, David Chandler OAM, and it set to oversee and regulate the construction industry ensuring the quality of residential buildings. The Commission’s focus is on “proactive regulation and using data to reduce costs and increase value” and to “support industry-led initiatives to build skills and capacity”.
On 21 November 2023, the Building Legislation Amendment Bill 2023 (Bill) was passed by parliament which included several amendments made to NSW building legislation as part of ongoing reforms to transform the regulation of the construction industry and restore trust and confidence in residential buildings. The Bill was assented by Parliament on 11 December 2023.
The changes made by the Bill impact all builders and tradespersons working on buildings covered by the Home Building Act 1989 (NSW) and owners of these buildings.
The Bill also expanded the powers of the Commission to class 1 residential houses. This means that inspectors will now be able to enter residential homes under construction or where construction work is being undertaken to inspect the build quality.
A summary of the Commission’s powers include:
- inspecting, investigating and issuing rectification orders on class 1 and class 2 buildings;
- entering premises (with consent if occupied) and seeking production of documents or information. This is extended beyond contracted premises to parts of the building or other structures damaged by defective work;
- issuing stop work orders to proactively address potential issues. A breach of a stop work order may involve maximum penalties of $330,000 or $110,000 for corporations and individuals respectively; and
- preventing, cancelling or disqualifying an individual from holding a contractor licence if they were involved in a bankrupt partnership or phoenixing activity. This is aimed to regulate and hold accountable individuals who pose a risk to consumers and subcontractors.
For questions related to the powers of the Commission or any other changes made under the Building Legislation Amendment Act 2023 (NSW), contact a member of Addisons’ Construction & Infrastructure team.
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