Changes to design and building practitioner obligations

Insurance exemption for building practitioners extended

Under the Design and Building Practitioners Act 2020, a registered practitioner must hold professional indemnity insurance for the work they carry out. This mandatory insurance requirement for building practitioners will commence from 1 July 2025.

This is an extension of 12 months to the current exemption, acknowledging the limited availability of insurance products for building practitioners and to provide additional time for new industry insurance products to become available.

In addition to any existing obligations under the Home Building Compensation scheme, NSW consumers will continue to be protected by statutory warranties under the Home Building Act 1989 in the case of defective or incomplete work.

Application of the Design and Building Practitioners Act to remedial building work for class 3 and 9c buildings deferred

On 3 July 2023, the requirements of the Design and Building Practitioners Act 2020 and the Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020 expanded to the construction of new class 3 and 9c buildings, including mixed-use buildings with a class 3 or 9c part.

The application of the Design and Building Practitioners Act 2020 to alteration, repair and renovation work on existing class 3 and 9c buildings was deferred to 1 July 2024. This has now been deferred until 1 July 2025.

This 12-month extension will provide the industry with additional time to prepare for the obligations under the Design and Building Practitioners (DBP) scheme.  

The DBP Act continues to apply to alteration, repair and renovation work on existing class 2 buildings and mixed-use buildings with a class 2 part.

Certain class 3 buildings and mixed-use developments to be exempt from the Design and Building Practitioners Act

In July 2023, the Design and Building Practitioners (DBP) Act and the Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020 expanded to the construction of new class 3 and 9c buildings, including mixed-use buildings with a class 3 or 9c part.

From 1 July 2024, certain class 3 buildings are exempt from the requirements under the DBP scheme. These buildings pose a lower risk to consumers. This ensures the obligations imposed by the DBP scheme remain proportionate to the risks associated with the work being carried out.

The following class 3 buildings will be exempt from the DBP scheme:

• Hotels 
• Motels
• Class 9a or 9b buildings that include minor accommodation facilities where the class 3 part is less than 10 per cent of the gross floor area

Hotels and motels are only exempt from the DBP scheme if no part of the building is subject to a strata scheme or contains serviced apartments.

From 1 July 2024, the new exemptions will be available for selection when creating a Building Work case on the NSW Planning Portal.

Common questions

Building work for my project started before 1 July 2024 and is now exempt from the DBP scheme. How do the latest changes apply to me?

If building work on a new hotel, motel or minor accommodation facility started and declarations were lodged on the NSW Planning Portal before 1 July 2024, these developments will be excluded from the rules and obligations under the DBP scheme.

Any further designs and design compliance declarations do not need to be uploaded on the NSW Planning Portal. Additionally, a building compliance declaration does not need to be submitted.

Building work is due to start after 1 July 2024 for a class 3 or 9c building that is now exempt from the DBP scheme. How do the latest changes apply to me?

If building work is scheduled to start after 1 July 2024 for a hotel, motel or minor accommodation facility exempt from the DBP scheme, you will be able to declare this exemption when creating a Building Work case on the NSW Planning Portal.

Any further designs and design compliance declarations do not need to be uploaded on the NSW Planning Portal. Additionally, a building compliance declaration does not need to be submitted.

Does the Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020 (RAB Act) still apply if my class 3 building is now exempt from the DBP scheme?

Yes. The RAB Act applies to regulated class 2, 3 and 9c buildings.

Developers must provide an expected completion notice detailing the date they plan to apply for an occupation certificate. The notice must be given at least 6 months, but no more than 12 months, before applying for an occupation certificate.