We’re excited to share the latest development in building legislation: the recent passage of the Building Legislation Amendment Bill 2023. This bill represents a significant stride by the NSW Government towards enhancing standards in the building and construction industry.

Here’s a breakdown of the key changes and their implications for industry stakeholders:

Residential Apartment Building Act Extend to Houses

The bill extends the protective measures outlined in the Residential Apartment Building Act 2020 to residential homes and terraces. This reform empowers the Secretary to investigate, mitigate and rectify defects in freestanding houses. Notably, developers are now required to give advance notice to the Secretary before applying for an Occupation Certificate (OC), ensuring proactive defect management.

Duty of Care Across the Supply Chain

Recognising the complexity of construction supply chains, the legislation imposes a uniform duty of care for product quality across all industry participants. Under the Building Products (Safety) Act 2017, every member of the supply chain must ensure that building products meet the National Construction Code (or otherwise prescribed) and provide comprehensive information about their use and maintenance. Penalties for non-compliance are set to uphold accountability.

Transition Towards Decennial Liability Insurance

Anticipating a shift towards Decennial Liability Insurance (DLI) in the next five years, the legislation amends the Strata Schemes Management Act 2015. This transition period aims to replace the current bond requirement with DLI, providing increased consumer protection against latent defects.

From 1st July 2024, the amount required for the two-year bond period will increase from 2% to 3% of the total contract cost to build, allowing consumers more money to identify and rectify defects right after construction is finished.

As the regulatory landscape evolves, it’s crucial for industry stakeholders to stay informed about and adapt to changes effectively. We will keep you updated on these legislative amendments and their implications for their operations.

For any inquiries or assistance navigating these changes, feel free to reach us at admin@archi-qs.com.au. Our team is here to support you in ensuring compliance and success in the ever-evolving building industry.