Residential building industry changes came into effect on 1 July 2021 under the NSW Design and Building Practitioners Act 2020. Take this opportunity to understand how the changes may impact your business, and how to ensure a seamless transition.

There are two new registration schemes for Class 2-related work – one for Professional Engineers and one for Designers and Builders.

Before construction can begin, certain designs must be certified compliant with the Building Code of Australia and other relevant standards. Declared designs must be submitted to the NSW Planning Portal, and design issues must also be corrected before construction begins.

“For trade subcontractors and builders, this greater accountability for those designing the key components of these buildings should provide them greater assurance and confidence on the design meeting required Building Codes and Australian Standards,” says Simon Croft, Executive Director of Building Policy at HIA.

“The primary focus of the introduction to the reforms has been on higher occupancy buildings because, if something goes wrong, they’re often more costly and complex to repair.”

“The legislation is aimed at improving accountability from design stage to build stage for projects, with compliance declarations provided from pre-construction design to the completed building works,” says Ben Robertson, National Practice Director at Nexus Lawyers.

“The crux of the impact is that building works can be monitored and notice has to be given to the Building Commissioner through the NSW Planning Portal prior to application for an occupation certificate. The Building Commissioner has a number of regulatory tools if there are building defects, including significantly holding up the issuance of an occupational certificate.”

Ben says another significant issue is that part of the new legislation includes a statutory duty of care on building participants, which broadens the scope for action to be brought against builders, subcontractors, architects or engineers involved in a building project. Prior to this, High Court authority made it very difficult to sue a builder or designer for negligence.

“The builder’s client will get a suite of design documentation with compliance certificates, which they wouldn’t have received prior to this legislation. Now, under this Act, there’s a statutory duty of care, which is akin to a negligence-type action,” he says. “Building owners will be able to identify any parties that have an involvement in any defects in the building better than they would prior to this legislation.”

Simon recommends checking with the principal contractor if the job you’re working on is captured under the new legislation. “Take time to get familiar with the new requirements and how they affect you, the project, and whether you may need to get a form of registration,” he says.

You can register on the Service NSW website as either a Professional Engineer or Design and Building Practitioner. Keep in mind there are other registration requirements, including insurance and ongoing professional development. You’ll need to provide proof of qualifications and experience when registering. Designers and builders must also prove they possess relevant knowledge and skills.

Ben also suggests revisiting contracts to see if they operate and function well under the new legislation. “What do they say about responsibility for design and compliance declarations? Are they clear on what the scope of work is in relation to that, and the responsibilities in relation to those roles under the legislation?”

“Practitioners need to be aware of these new requirements and make sure they not only meet them, but they best protect their businesses.”