How we audit building certifiers

Key information

• Certifiers are public officials who check if proposed developments meet all the relevant planning and building rules. Audits make sure certifiers do their job properly.
• We use risk analysis to decide who to audit, looking at past compliance, complaints, and project complexity.
• The building certifier audit strategy enables us to proactively review the conduct of certifiers in the private sector and local councils.

Background

The NSW Government wants to rebuild public confidence in the building industry. This is because several years ago it found a prevalence of serious compliance failures in recently constructed buildings.

In 2018, the Building Confidence report made several key recommendations to improve accountability in the building industry. 

Recommendations included:

• granting extensive powers to audit building work, and enforce compliance
• using proactive strategies for regulatory oversight of the commercial sector.

The Construct NSW strategy is also aimed at enhancing the work of certifiers. It gave us the Practice Standard for registered certifiers in 2020.

See Working as a certifier for duties and laws certifiers must follow.

Why we audit building certifiers

Certifiers play an important role in the construction industry.

Certifiers are responsible for assessing: 

• the construction of buildings and structures
• land and strata subdivisions.

When a certifier does not complete their functions properly, it can negatively impact property owners, neighbours and the wider community.

Poor certification work can risk the health, safety and comfort of property owners, neighbours, and the community. It can also affect the proper functioning of buildings, structures, land, and nearby areas, and the quality of the built and natural environment.

Our goals

We audit building certifiers with the aim to:

• promote certifiers’ obligations under the Regulations
• ensure they adjust their behaviour after education or disciplinary actions
• reduce harm or loss to the community from non-compliance
• use a range of enforcement options if certifiers don't comply with the standards
• collect data about practices to improve regulation
• highlight important areas of practice for all certifiers.

Our authority to audit

Under section 106 (3) of the BD&C Act, the Secretary can audit a registered certifier or accreditation authority at any time. 

An authorised officer can:

• ask for information and records
• require answers and further details
• take possession of records as evidence.

Certifiers must comply with these requests under sections 91 and 92 of the BD&C Act. If you obstruct or interfere with an officer, or don’t comply, you can be fined (up to $110,000 for companies and $22,000 for individuals).

Who we audit

We use risk analysis tools to decide which certifiers to audit. We look at complaints and other information about certifier behaviour to find risks to regulatory outcomes. 

When identifying who to audit, we consider certifiers with risk factors such as those who:

• have faced disciplinary action in the past
• have been subject to complaints or investigations
• are working on highly technical building projects
• are involved in projects affecting a large number of people
• are assessing high-risk materials (such as non-compliant cladding)
• are swimming pool inspectors working under the Swimming Pools Act 1992
• have certified buildings with serious defects, found in audits under other Building Commission NSW laws.

This helps us focus on areas with the highest risk to ensure safety and compliance.