Overview

Key amendments to several NSW building regulations have been announced. Several upcoming compliance dates have been deferred, giving practitioners more time to adapt and prepare. NSW Government

What’s Changing?

1. Extension of Design and Building Practitioners Act (DBP Act) to Class 3 and 9c Remedial Works

• The DBP Act’s expansion to cover remedial repair, alteration, and renovation work on existing Class 3 and 9c buildings has been deferred by 12 months.
• The new commencement date is now 1 July 2026 (previously July 2025). The Act continues applying for Class 2 and mixed-use buildings with Class 2 parts.

2. Professional Indemnity Insurance (PII) Exemption Extension

• Registered building practitioners have an extended exemption from holding adequate PII, now valid until 30 June 2026.
• This provides additional transition time for practitioners to ensure compliance with new insurance obligations.

3. Deferral of Strata Building Bond Increase

• The required increase in strata building bond from 2% to 3% has been pushed back until 1 July 2026. This applies to new strata buildings without home building compensation insurance.
• These bonds are lodged before the issue of occupation certificates and may be used to rectify defects found during inspections.

4. Cladding-Related Motor Indemnity Insurance Exemption

• The regulations remove the expiry date on the certifier PII exemption related to cladding, effectively making the exemption open-ended unless further amendments occur.

Implications for Builders and Practitioners

These changes affect compliance timelines significantly. Here’s how builders and institute members can approach them:

• Planning and Projects: If you’re involved in remedial works for Class 3 and 9c buildings, you now have an additional year to prepare for the DBP Act’s requirements.
• Insurance and Risk Management: Those affected by the PII exemption expiration have an extra 12 months – use this time to evaluate whether you’ll need to secure or adjust professional indemnity coverage before mid-2026.
• Strata Specialists and Developers: With the building bond increase delayed, there’s a longer window to incorporate the 2% bond rate in financial and contractual planning for projects starting before 1 July 2026.
• Certifiers Handling Cladding: The removal of the expiry date on PII exemption offers stability and reduces urgency around immediate insurance procurement – though it’s vital to monitor any future regulatory changes.

Summary Table