NSW: Would returning to council certification fix nsw building defect issues?

Question: Could the defect issues in NSW be resolved by going back to the model of Councils providing the building certificates instead of relying on private certifiers?

Answer: This is an industry issue that requires a whole of industry and community resolution.

Bruce McKenzie, Sedgwick:

Both councils and private certifiers have been involved in buildings with defects, therefore the issue extends beyond the certifying body. The Design and Building Practitioners Act provides a better pathway for new building works including declared designs that are checked prior to construction. Further accountability through LDI technical inspections and iCert ratings are just a few of the changes in NSW that are changing the way builders opertate to drive better outcomes.

Corey Nugent, Resilience Insurance:

The evidence doesn’t suggest one is significantly better or worse than the other. While there is a misconception that privatisation and enabling private certifiers has driven or facilitated the issues we currently see, this goes against all evidence in the research (including and highly importantly through the Building Confidence Report), instead highlighting the issue is spread across the entire segment – from design and professional services to developers, builders, consumers and OC and then to the sub-trades and other participants.

Recent presentation of audits into Private Certifiers and Local Councils by the NSW Building Commissioner showed a very different picture to that inferred in the question, with councils having a noticeably high negative outcome in audit on compliance, documentation and action than private certifiers. While this may not support the narrative of some in the community, the evidence is growing and quite clear that private certification and involvement is not the issue. This is an industry issue that requires a whole of industry and community resolution.

This post appears in the April 2023 edition of The NSW Strata Magazine.

Bruce McKenzie
Sedgwick
E: bruce.mckenzie@au.sedgwick.com
P: 1300 735 720

Corey Nugent
Resilience Insurance
E: CNugent@resilienceinsurance.com.au
T: 0450 862 945