Design and Building Practitioners Act

Information for Owners Corporations (Last Updated 7 June 2024)

The Design and Building Practitioners Act has been introduced to improve performance/compliance in the building industry and imposes new obligations on both consultants and builders to comply with the legislation. The legislation initially involved new construction only, but has now been extended to remedial works on all Class 2 buildings ie (essentially strata multi-unit residential type buildings). The Building Commission NSW has recently been established and is a new, fit-for-purpose building regulator bringing together teams from NSW Fair Trading and the Office of the Building Commissioner into one, to provide an integrated and consistent approach to ensuring confidence in residential building quality in NSW. An important practical consequence is that the legislation will provide additional protection for owners in terms of building defect claims. The existing insurance afforded by the Home Building Compensation Fund (HBCF) for works over $20K will continue to apply.

Refer link for more detailed information in regard to the legislation for the Design and Building Practitioners Act and see the Department of Planning and Environment Fact Sheet here.

What does this mean for the Owners Corporation?

a. Any works that involves design / construction / installation or maintenance of a component of a building that is part of the building enclosure in a Class 2 building and having a cost exceeding $5000 must have a regulated design prepared by a registered design practitioner and a design compliance declaration provided by the practitioner in the first instance ( there are, however, exemptions available in a few instances for works of a very urgent nature which will need to be assessed at the time of planning).

b. Quotes/tenders can then be obtained from contractors based on the regulated design documentation prepared (a contractor must not carry out any building work that requires a regulated design until point (a) above has been completed). Recent reforms to the Strata Schemes Management Act also requires Owners Corporations to obtain two independent quotes/tenders for all work over $30,000.

c. The contractor must provide a building compliance declaration and other documents required by legislation on completion of the work (and prior to final payment for the work).