This article originally appeared on the LinkedIn account of NSW Building Commissioner David Chandler.
Republished with permission.
#BuildingReforms in NSW have been rolled out over the last 3-years. It was always going to take some time for the slow adopters to realise that the consequences of not paying attention were going to be high. Some phasing in latitude was unavoidable. Most projects now coming to completion were commenced in the 2019 to 2022 time window. There will be no latitude offerred to these projects.
Follow this link to review the 14th November 2022 amendments to the #RABAct: https://lnkd.in/gcK9xbQU
The project in this video will be revealed in the next few months. It was commenced in 2019. Save for now, to say the findings here will inform a detailed case study, that those with an interest in the NSW #RABAct should follow carefully. Serious defects in this project were identified by #NSWFairTrading over a year ago. #Developers, #Builders and #Certifiers should note that any Fair Trading Audit under the RAB Act does not signal a final list of potential serious defects. These audits are essentially a dip test. Audit defect lists are likely to be expanded at later visits if new items are identified. And they can be added to after a #CertificateofOccupancy (OC) is issued, typically up to 6-years.
The case study will show where process improvements can be made by the regulator, certifiers and most importantly builders.
The immediate message is that the days of simply washing over defects with patch-jobs are over. Serious defects will most likely involve #BuildingInformationCertificates, new #DeclaredDesigns, updated #ConstructionCertificates and in some instances an #EnforceableUndertakings to provide enhanced risk assurance for apartment purchasers to cover latent issues. Enforceable Undertakings will require securities, and be published.
Developers, Builders and Certifiers with past insolvency, poor work quality and non-compliance form will be singled out for priority attention.
Those with #iCIRT like ratings may be offered some latitude over those who have yet to establish their credentials as a trustworthy player. #Consumers should note that a rating is not a guarantee that there will be no latent defects present. Just that a rated developer or builder is more likely to return and make good their defects.
Soon, credentialed developers will be able to offer 10-year warranty insurance by approved insurance providers. The first of these are now available and issued. The price of these policies will relate to the trustworthiness of the developer and delivery team.
Consumers should enquire about #LatentDefectsInsurance from here on. It is available.
Images of defects to be addressed in the case study project referred to in this post is available here: https://lnkd.in/gtePVerE
#Accountability and #Visibility in 2023.
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