Posted by Ben Robertson | 28 April 2021 | Civil Contractors and Construction
What does that mean for your business?
Well, with the bulk of the DAB P Act coming into force from 1 July 2021, practitioners involved in the construction of class 2 buildings should review their business practices to ensure:
What Construction Will Be Regulated?
The DAB P Act regulates class 2 buildings. While this largely applies to multi storey residential apartment buildings, this class also captures single storey attached dwellings that share a common space below the dwellings (such as a duplex with a shared basement carpark).
Key Features of the Regulation
Includes the following:
Transitional Arrangements For Existing Work
The Regulations state that where:
Then the following requirements of the DAB P Act do not apply:
Instead the builder must provide copies of all designs relied upon to the Secretary of the Department of Customer Service before an application is made for an occupation certificate. Fines of up to $165,000 for a body corporate, or up to $55,000 for an individual apply if builders fail to comply with this requirement.
Accordingly, where there are staged works carried out over multiple construction certificates, for any works that are the subject of construction certificates issued after 1 July 2021, the DAB P Act will apply in full to those construction works (subject to the below comments in relation to the transitional arrangements for designs).
Transitional Arrangements For Designs For Building Works
In order for the industry to adapt to the new provisions, for the first 12 months of the legislation, regulated designs and declarations may be provided for each stage of the works approved under a particular building certificate.
Following this transitional period, i.e. after 1 July 2022, all regulated designs and declarations for the entire project will need to be provided prior to any building work being undertaken.
The works that are excluded by the Regulation from the building work regulated by the DAB P Act, include:
There are four phases of the life-cycle of a construction project where documents need to be lodged through the NSW Planning Portal, being:
There are 18 classes of Design Practitioner prescribed being:
|Architectural||Body Corporate||Building Design
|Façade||Fire Safety Engineering||Fire Systems
(Detection and Alarm Systems)
(Fire Hydrant and Fire Hose Reel)
(Mechanical Smoke Control)
|Geotechnical Engineering||Mechanical Engineering|
|Structural Engineering||Vertical Transportation|
Included in the above classes are restricted practitioners and practitioners authorized to only act on low rise buildings (class 2 building with a maximum gross floor area of no more than 2,000 m2, but not including a building of Type A or Type B construction) to minimize consumer costs.
The Regulation prescribes registration pathways and alternative registration pathways for practitioners.
A six month transitional period is in place until 31 December 2021, whereby a person who applies for registration will be able to continue to work in the field the registration is required until the application has been processed.
There are 6 classes of engineers prescribed being:
|Geotechnical Engineering||Structural Engineering||Civil Engineering|
|Mechanical Engineering||Fire Safety Engineering||Electrical Engineering|
The Regulation prescribes three options for the registration of engineers, being:
It is a requirement under the legislation that practitioners have ‘adequate’ insurance in place, however, there is a two year moratorium in place and the insurance requirements will not be monitored during that period.
The DAB P Act and accompanying regulations represents a significant change for construction of class 2 buildings in NSW. The level of regulatory compliance required will impact upon:
It is important that practitioners take steps now to ensure their systems are robust enough to ensure that projects are compliant moving forward.
For more information on how we can assist provide you with tailored advice to assist with the transition to the new construction regime in NSW, contact us on email@example.com
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This publication is © Nexus Law Group and is for general guidance only.
Legal advice should be sought before taking action in relation to any specific issues.
On 17 July 2021, the NSW Government issued a public health order directing that work not be carried out on construction sites in Greater Sydney. "Following construction sites being shut down over 17 – 18 July 2021, builders and subcontractors should review their contracts closely and attend to issuing contract notices for extensions of time and suspension of work as applicable," said Nexus National Practice Director Ben Robertson.
"With NSW Design & Building Practitioners Act 2020 coming into force on 1 July 2021, there will be a 12 month transition period to allow industry to adapt to the new provisions," said National Practice Director Ben Robertson.
"As we reported last year, business interruption policy insurers lost a significant test case in the NSW Court of Appeal when the court found that many exclusion clauses, which insurers sought to rely upon to deny claims for business interruption due to COVID 19, were invalid," said Nexus National Practice Director Construction & Infrastructure Ben Robertson.