On 25 November 2022, the NSW Government completed public consultations for the following proposed bills to ensure best practices regulation of building work within the building and construction sector by 2025:
- Building Bill 2022.
- Building Compliance and Enforcement Bill 2022.
- Building and Construction Legislation Amendment Bill 2022 (and the Building and Construction Legislation Amendment Regulation 2022).
According to the NSW Government, the proposed bills seek to transform the building and construction industry by enhancing safety and transparency, guaranteeing high-quality design and construction, as well as simplifying building legislation.
Of particular significance is the Building Bill 2022 which has as one of its main objectives to replace the current Home Building Act 1989 (NSW) (HBA).
Some of the key changes that may be implemented as a result of replacing the HBA include:
- expanding the current HBA statutory warranties including extending the timeframe of their operation from 6 to 10 years for major defects and from 2 to 3 years for minor defects;
- broadening the current HBA definition of ‘developer’ to encompass more parties that may be liable for defective building work; and
- repealing the current HBA definition of ‘major defect’ with a broader definition of ‘serious defect’.
Although the Building Bill 2022 is yet to be presented to NSW Parliament for consideration, builders and developers in particular should pay close attention to the proposed changes given the potential for expanded liability and duty to consumers.
If you would like advice or assistance in relation commercial law matters, please contact our accredited business law specialists and Partners Justin Thornton on jthornton@marsdens.net.au and Rahul Lachman on rlachman@marsdens.net.au or otherwise by calling them on (02) 4626 5077.
The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.
