NSW Government set to overhaul construction industry with implications for offsite construction

Ambitious building legislation reform moves forward with increased consumer protection for offsite-constructed buildings.

The NSW Government’s tenacious agenda for building legislation reform is gathering pace, with the release of three Bills for public consultation as part of the Construct NSW transformation strategy.

Their agenda broadly focuses on building “trustworthy buildings” which are fit for purpose in a clear strategy to restore consumer confidence in the construction industry.

Within the scope of the three proposed Bills, they’re proposing to regulate builders and designers undertaking commercial work, which will also involve a new licensing scheme.

Of particular relevance to manufacturers and builders of offsite-constructed buildings is Building Bill 2002 which will replace the Home Building Act 1989 (HB Act).

The purpose of the Building Bill is to create end-to-end accountability for building work in NSW and consolidate and regulate key elements of the building and construction industry including:

  • what building work is intended to be regulated and who should be licensed to perform it;
  • the approval process for building work;
  • fire safety requirements for building work;
  • key consumer protections that have been preserved for residential building work; and
  • limiting the work owner-builders will be able to carry out and introducing tighter restrictions on who is able to apply for an owner-builder permit.

Several of the key features of the Bill include implications for manufacturers and builders of offsite or prefabricated housing, including introducing a new regulatory scheme for prefabricated and offsite-manufactured housing, and extending consumer protection obligations to manufacturers of offsite-constructed and prefabricated buildings.

Consultation is open until Friday, 25 November 2022.

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