NSW New Building Commissioner
Author: Scott Palin
Published: August 30, 2020
Following NSW government’s 17 years of reluctance to make the required adjustments to the building regulation framework, finally it appears the state government (having been pummelled by the media) is finally ready to put some of the overdue reforms into play.
The department of Fair Trading has set a target for auditing a minimum of 150 Private Certifiers, of the 600 currently operating in NSW, by the end of the 2019 financial year. This is a welcomed start to reform, albeit Private Certifiers in more cases than not, can simply plead ignorance or pass the buck onto applicable consultants. Consultants in turn blame the Private Certifiers – and around we go. But it’s a start, nonetheless. I believe that if the NSW state government wants to keep the private sector in the building industry, there needs to be a final sign-off given by local councils PRIOR to the release of an Occupation Certificate. In this way councils would have the final say when it comes to the overall compliance against THEIR approved DAs and it allows for any indiscretions evident in the Private Certifiers documentation to be examined in real time. If continual discrepancies are raised by a particular Private Certifier, then 3 strikes you’re out! The issue with this situation is distinguishing between incompetence and corruption – regardless, if you continue to make errors in your job, you are not fit to carry out such jurisdictions and it’s time to move on.
In my opinion, the core feature eroding the integrity of the current construction industry falls in the protection NSW has in place for the directors of limited liability companies. Government have these protections in place to promote the economy through development and the windfall of taxes these developments typically raise for state governments and local councils alike. The protections, however, are a double-edged sword when it comes to holding individuals accountable for building standards that fall below par. In the current building environment when building defects become a financial burden on a developer or builder, they liquidate and cease trading under their current company, and return like a Phoenix from the flames into brand new company. The new company now has no legal obligation to fix the defective building they have walked away from and the unfortunate owners are left with the bill or to deal with the insurance companies. Any subcontractors that performed works on the defective building and unlikely enough to have not already been paid – have no way of recouping any funds owed to them by these phantom companies or their directors. How this is legally possible blows me away – and is the foundation for the current state of the NSW construction industry. Like any other industry with some form of common sense – for regulations and laws to work, someone needs to be held accountable.
This month has seen NSW Premier Gladys Berejiklian appoint a new NSW Building Commissioner to restore confidence in the construction industry. David Chandler has been appointed to the position with 40-years of construction industry experience and the statement that caught my attention was that he has been quick to point out the Australian construction industry’s “culture of trying to avoid accountability”. Mr Chandler has issued a warning to the state's construction industry that he will be watching their moves very closely, while he tries to undertake the arduous journey of implementing the greatest overhaul to building laws in the state's history. Mr Chandler’s commenced in the role on the 14th of August this month, with the key responsibilities being to carry out investigative and disciplinary action against misconducts carried out within the building industry; in addition to, overseeing licensing and auditing processes are completed in accordance with industry standards. The commissioner is also expected to drive legislative reforms over consultation across the NSW building industry. This includes the upcoming legislation that is scheduled to be introduced to the NSW parliament later this year. Under these new legislative reforms, building practitioners will now be required to be registered, a duty of care will be established to provide homeowners ease of access when seeking compensation against negligent builders, and a greater degree of scrutiny will be undertaken to ensure that all buildings are designed and constructed in compliance with the National Building’s Code. Will David succeed……stay tuned!