Regulation of the building industry in New South Wales
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Research Paper 3, 2023
Damian Gilyana, BCityPlan (Hons)
Research Analyst, Parliamentary Research Service
Daniel Montoya, BEnvSc (Hons), PhD
Research Team Leader, Parliamentary Research Service
The NSW building industry has experienced significant changes over the past three decades. A process of deregulation which began in the 1990s coincided with a large increase in construction activity from 2011 onwards. Instances of defective building work in residential apartment buildings, particularly the high-profile building failures of the Opal and Mascot Towers in 2018 and 2019, acted as a catalyst for 2 NSW parliamentary inquiries into the standards of the industry. Subsequent changes included the appointment of a NSW Building Commissioner, and reformed building legislation. This paper looks at the building industry regulatory framework and initiatives of the NSW Government and explores the progress of recommendations arising from the 2 inquiries. It also explores 4 specific issues that are a particularly important part of the regulatory framework: private certification, insurance, flammable cladding and fire safety, and strata schemes. In a future review the Legislative Council's Public Accountability Committee is expected to consider the effectiveness of new legislation.
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