NSW Building Bill 2024 : New Licensing & Compliance Requirements

11 August 2025 in Building and Construction Law | 20 min read | skip to FAQs

This article provides an overview of the potential future reforms proposed under the current draft of the Building Bill 2024 (NSW) (Bill), which is presently at the Final Review Stage and, to date, has not been introduced to the Parliament of New South Wales. Once introduced to Parliament, the Bill will need to be passed by both houses of Parliament prior to being enacted as law. During such a process the Bill will likely undergo change. Accordingly, this article will provide a summary of the Bill in its present form, to date.

Background and Purpose

The Bill is part of a comprehensive legislation overhaul of the NSW Building and Construction Regulatory Framework. Being one of three key bills, the Bill is reflective of a major reform initiative by the NSW Government which has been heavily influenced by the 2018 Building Confidence Report by Shergold and Wier.  The other bills in question are the Building Compliance and Enforcement Bill 2022 (NSW) and the Building Insurance Bill 2024 (NSW). Collectively the three Bills aim to consolidate nine existing Acts into a single, legislative framework that covers all residential and commercial building work in NSW. To date, all three bills are presently in draft form at the Final Review Stage. In September 2024, the NSW Government announced its intention to introduce the three Bills to Parliament in 2025, and at the time of publishing, the introduction of the bills is yet to take place.

Legislation Repealed by the Bill

The Bill, if passed by Parliament, will repeal the following NSW Legislation:

1. The Architects Act 2003 (NSW)
2. The Architects Regulation 2017 (NSW)
3. The Building and Development Certifiers Act 2018 (NSW)
4. The Building and Development Certifiers Regulation 2020 (NSW)
5. The Design and Building Practitioners Act 2020 (NSW)
6. The Design and Building Practitioners Regulation 2021 (NSW)
7. The Environmental Planning and Assessment (Development Certification and Fire Safety) Regulation 2021 (NSW)
8. The Home Building Act 1989 (NSW)
9. The Home Building Regulation 2014 (NSW)

Summary of the Bill to Date

Chapter 2 of the Bill: Definitions

Chapter 2 of the Bill introduces eleven (11) key definitions, namely:

1. Clause 9 of the Bill defines “building elements”;
2. Clause 10 defines “building work”;
3. Clause 11 defines “certification work”;
4. Clause 12 defines “general building design work”;
5. Clause 13 defines “home building work”;
6. Clause 14 defines “licensed work”;
7. Clause 15 defines “owner-building work”;
8. Clause 16 defines “prefabricated buildings”;
9. Clause 17 defines “prefabricated building work”;
10. Clause 18 defines “professional engineering work”; and
11. Clause 19 defines “specialist work”.

Chapter 3 of the Bill: Licensing

Chapter 3 of the Bill sets out a licence scheme, whereby to do any of the categories of licensed work under Clause 14 of the Bill, a person must be authorised by having obtained the relevant licence for that particular category of work. Penalties will apply if a person fails to obtain such a licence.

In particular, under Chapter 3, Part 2 of the Bill, a person may apply for a licence (see Clause 25) and the relevant authority is given the power to both grant (see Clause 22) and refuse licences (see Clauses 23 and 24). In particular, Clause 23 outlines a list of circumstances in which a person is not suitable to carry out licensed work, while Clause 24 provides a list of circumstance in which the relevant authority may form the opinion that a person is not suitable to carry out such work. Part 3 sets out the requirements that any licence holder must comply with, such as Clause 50, which sets out qualifications skills and experience that any licence holder must have, and Clauses 31 to 34, which outline the requirements for licensed bodies corporate.

Chapter 4 of the Bill: Home Building Work

Chapter 4 of the Bill sets out the requirements of a contract for work that falls within the definition of home building work under Clause 13 of the Bill. Such requirements include when a contract is needed, and the format of the contract. In particular, as explained in more detail below, in Part 1 of Chapter 4 of the Bill, a distinction is made between the requirements of contracts for major works and the requirements of contracts for minor works.

Requirement Division 1 Part 1 of Chapter 4 of the Bill

Division 1, Part 1 of Chapter 4 of the Bill provides for:

1. ‘Who’ the parties are:
   • Namely the Contractor, who undertakes the works (see Clause 67 of the Bill) and the Contracted Party, who is the owner of the land or a person who enters into a contract with the contractor (see Clause 65 of the Bill).
2. ‘When’ the parties must have a contract in place:
   • Clauses 65 and 70 of the Bill provide that there must be a contract in place when the cost of the works is either greater than the ‘major work amount’ (which will be prescribed by the Regulation(s)) or is greater than the ‘minor work amount’ (also to be prescribed by the Regulation(s)), and not greater than the ‘major work amount’.
3. Clause 71 of the Bill provides exceptions to the above requirements in cases where the work is urgent.

Requirements of Part 2 of Chapter 4 of the Bill

Major Work Contracts:

Division 2, Part 1 of Chapter 4 of the Bill outlines the requirements for major work contracts, including:

1. The form of such contracts, being that they are in writing, dated and signed by the parties (see Clause 73).
2. The content (terms) that must be included in each contract (see Clause 74), which include:
   1. The names of the parties;
   2. The contractor’s details (ACN if a company and relevant licence number);
   3. Scope and description of the work;
   4. Any plans or specifications for the work;
   5. On the first page, the contract price, method used to calculate it and (if relevant) a warning that the contract price may be varied and details of the effects of allowing any variation of the contract price;
   6. The applicable statutory warranties;
   7. The start of work date and date of practical completion;
   8. A cooling-off statement;
   9. Details of progress payments payable;
   10. A statement regarding termination in circumstances as provided by the general law as well as any additional circumstances; and
   11. A checklist in the form approved by the relevant authority, and any other matters prescribed by the Regulation(s).
3. That the contract cannot be varied unless a “variation document” is prepared by the contractor (see Clause 75 for the particular requirements of a variation document).
4. Where there is a display home, the requirements for documents that an exhibitor must display when making the home available for inspection (see Clause 76).
5. Where the contract provides for progress payments, such payments cannot be for more than the value of the work completed at the time the payment is required to be made (see Clause 77).

Rescission and Cooling-off

Division 2, Part 1 of Chapter 4 of the Bill also provides that where the major work contract is prepared by the Contractor, instead of the Contracted Party, or where terms have been added by the Contractor to a contract prepared by the Contracted Party, then the following will apply to that contract:

1. Clause 79 of the Bill provides a 5-day cooling-off period for the Contracted Party (property owner) to a major work contract, whereby that person can rescind the contract within 5 business days after the contract has been signed and that person has received, or becomes aware of their entitlement to receive, a copy of the signed contract.
2. Clause 80 of the Bill provides that the terms of a major work contract may exclude a cooling-off period. This will only take effect when the Contracted Party provides the Contractor with a waiver certificate, where the Contracted Party effectively waives their right to the 5-day cooling-off period.
3. Clause 81 of the Bill provides that where a major work contract does not provide a cooling-off statement which complies with Clause 74 of the Bill, then the Contracted Party can rescind the contract within 7 days of becoming aware that the contract should have included that statement.

Minor Work Contracts:

Division 3, Part 1 of Chapter 4 of the Bill outlines the requirements for minor work contracts, including:

1. The form of such contracts, being that they are in writing, dated and signed by the parties (see Clause 83).
2. The content (terms) that must be included in each contract (see Clause 84), which include:
   1. The names of the parties;
   2. The contractor’s details (ACN if a company and relevant licence number);
   3. A description of the work to be conducted;
   4. Any plans or specifications for the work;
   5. On the first page, the contract price, method used to calculate it and (if relevant) a warning that the contract price may be varied and details of the effects of allowing any variation of the contract price;
   6. Any other matters that are prescribed by the Regulation(s).

Other Requirements

Division 4, Part 1 of Chapter 4 of the Bill outlines further requirements for home building work contracts in general, namely:

1. The contract terms must include all statutory terms that are to be prescribed by the Regulation(s), and any contract terms that are inconsistent with the statutory terms will be considered unenforceable (see Clause 85).
2. Clause 86 of the Bill prohibits Contractors from entering into a contract that contains a term or variation that has been prohibited by the Regulation(s).
3. If a contract term requires a dispute under the contract to go to arbitration, such a term is void (see Clause 87).
4. A contract must not request a deposit that is more than the maximum amount prescribed by the Regulation(s) (see Clause 88).
5. A Contractor must not unduly influence a Contracted Party regarding the appointment by that party of an approval authority (see Clause 89).
6. Clause 90 of the Bill states that prior to entering a major or minor work contract the Contractor must provide consumer information. Such consumer information will need to comply with the requirements of Clause 90(4) and the Regulation(s).
7. The Contractor must provide to the Contracted Party, no later than 5 business days after entering the contract, a signed copy of the contract (see Clause 91).
8. Clause 92 of the Bill states that home building work contracts do not convey any form of interest in land.
9. If a person enters a contract to carry out home building work and that person:
   1. Is unauthorised to do so; or
   2. The contract is a major work contract that fails to comply with the Bill’s requirements; or
   3. The person fails to obtain insurance in accordance with the Building Insurance Bill 2024 (NSW) (if and when it is enacted by the NSW Parliament); or
   4. Has contravened one of the requirements of the Regulation(s);

Then that person is considered a “non-compliant person” under the Bill and will be unable to enforce the contract or be entitled to damages or another form of remedy (see Clause 93).

Statutory Warranties

Part 2 of Chapter 4 of the Bill outlines the statutory warranties that are applicable to home building work. In particular:

1. Clause 95 of the Bill defines what constitutes a major defect in a building, a building element or a building product.
2. Clause 96 of the Bill outlines the applicable warranties that apply to home building work.
3. Clause 97 of the Bill states that the persons who benefit from the statutory warranties are: a person who is a party to the contract; the owner of the land (whether a party to the contract or not); or a subsequent owner of the land.
4. Clause 98 of the Bill states that the provider of the statutory warranties is the person: who enters into the contract for the work with the owner; who arranges or causes the work to be carried out; or who performs the work under a subcontract.
5. Clause 99 of the Bill outlines that a beneficiary of the statutory warranties has certain duties to the warranty provider, including to,provide written notice of any breach of any statutory warranty, mitigate any loss arising from any breach and allow the warranty provider to have access to the property to rectify the breach.
6. Clause 100 of the Bill defines the warranty period for home building work:
   1. Being 6 years after the completion of the work for a major defect; otherwise
   2. 90 days after the final report following the lodgement of a building bond under the Building Insurance Bill 2024 (NSW); or otherwise
   3. 2 years after completion of the work for a minor defect.
7. Clause 101 of the Bill prevents the enforcement of a statutory warranty, for a defect in work or materials if that warranty has already been used for that defect. Clause 101 also provides exceptions to this rule.
8. Clause 102 of the Bill sets out available defences in proceedings to enforce the statutory warranties.
9. Clause 103 of the Bill provides that the statutory warranties cannot be restricted or removed by any agreement or other document.

Completion of Home Building Work

Part 3 of Chapter 4 of the Bill states when home building work is considered to be completed also known as practical completion (see Clause 104).

Chapter 5 of the Bill: Owner-Builder Work

Chapter 5 of the Bill outlines the requirements for owner-builder work, namely:

1. Clause 106 of the Bill outlines the requirements for the application for an owner-builder permit.
2. Clause 107 provides that the relevant Authority cannot grant the application unless the Authority has satisfied itself regarding the points of consideration listed under Clause 107, such as that the applicant is at least 18 years of age.
3. Clause 108 provides the scope of the owner-builder permit’s authorisation.
4. Clause 109 outlines that the duration of the permit is for 5 years.
5. Clause 110 sets out the circumstances in which the permit may be cancelled.
6. Clause 111 states that a permit holder for owner-builder work cannot engage another person to carry out home building work unless the other person holds a relevant licence authorising that person to carry out the work.

Chapter 6 of the Bill: Approvals Relating to Building Work

Chapter 6 of the Bill outlines the requirements for the approvals relating to building work, as described below.

Definitions

1. Clause 113 defines regulated design.
2. Clause 114 defines design compliance declarations.
3. Clause 115 defines building work compliance declarations.

Building Approvals

1. Under Part 2, Chapter 6 of the Bill, a person cannot carry out building work under a development consent unless a building approval is in force, authorising the building work to be carried out, and such work must be carried out in accordance with the building approval (see Clause 116).
2. Clauses 117 to 120 of the Bill sets out the process for a person to apply for the relevant building approval, whether it be a general approval (see Clause 117) or an approval for building work involving:
   1. A building element (see Clause 118);
   2. A performance solution (see Clause 119);
   3. Prefabricated building work (see Clause 120); or
   4. Staged Building work (see Clause 121).
3. Clause 122 of the Bill lists the requirements an applicant must fulfill prior to the relevant authority issuing a building approval.
4. Clause 123 of the Bill lists what the applicant must receive from the authority, in the form of documentation, when the authority is issuing the approval.
5. A building approval cannot be issued if the work has already commenced (see Clause 124) and the approval can only be varied if the relevant authority approves (see Clause 125).

Completion Approvals

1. Under Clause 127, a person cannot occupy or use a building to which building work relates, unless an occupation approval, also known as an occupation certificate, has been obtained, allowing the building or the relevant part of the building to be occupied or used, and such occupation or use must comply with the approval.
2. The landowner must apply for a completion of work approval as soon as practicable after the work’s completion (See Clause 128).
3. Clauses 129 to 132 of the Bill set out how a person would apply for the relevant completion approvals, whether it be a general approval (see Clause 129) or an approval regarding building work involving:
   1. A building element (see Clause 130);
   2. Prefabricated building work (see Clause 131); or
   3. Staged Building work (see Clause 132).
4. Clause 133 of the Bill lists the requirements an applicant must fulfill prior to the relevant authority issuing a completion approval.
5. Clause 134 of the Bill states that the authority cannot issue the completion approval unless the authority has first issued a fire safety certificate for the building.

Declared Building Work

1. Clause 136 of the Bill defines the person responsible for declared building work as the person who agrees under a contract or other arrangement to carry out the declared building work, or, if there is more than one person, the principal contractor for the work.
2. Clause 138 of the Bill defines declared building work, namely being crown building work, exempt develop or relevant building work (regarding the erection of a new building or the alternation of an existing building).
3. Clause 139 of the Bill outlines the requirements that a person must fulfill prior to commencing the declared building work.
4. Clause 140 of the Bill prescribes that the declared building work must comply with the regulated design.
5. Clause 141 of the Bill outlined the documents that the person responsible must lodge once the declared building work is completed.
6. Clause 142 of the Bill allows for the Regulation(s) to prescribe requirements for the issuing of a strata certificate within the meaning of the Strata Scheme Development Act 2015 (NSW) regarding the declared building work.

Prefabricated Buildings

1. Clause 143 of the Bill defines who is a manufacturer of a prefabricated building.
2. Clause 144 of the Bill states that the manufacturer of a prefabricated building must ensure that the relevant licence holder makes a declaration regarding the prefabricated building, and such a declaration must comply with the requirements as outlined under Clause 144.
3. Clause 145 of the Bill outlines the transportation and building instructions that the manufacturer must prepare.
4. Clause 146 of the Bill prescribes that a person must not supply a prefabricated building to another person unless that person holds the relevant licence authorising that person to supply the prefabricated building. Clause 146 also outlines the documents that must be given to the person receiving the supply.
5. The Regulation(s) may set requirements for the issuing of a strata certificate (see the Strata Schemes Development Act 2015 (NSW)) or a certificate of compliance for a pool (see the Swimming Pools Act 1992 (NSW)) for prefabricated buildings.

Chapter 7 of the Bill: Dispute Resolution

Chapter 7 of the Bill outlines the process to apply to any building dispute .

Dealing with Building Disputes

1. Clause 156 of the Bill defines a building dispute as a dispute relating to one or more of the following matters which relate to the carrying out of home building work, whether or not under a contract, being:
   1. The supply of goods;
   2. The standard and quality of the home building work;
   3. Compliance with the terms of the contract;
   4. The payment of a specified sum of money;
   5. Relief from payment of a specified sum of money;
   6. Any other matter prescribed by the Regulation(s);
   7. A building bond within the meaning of the Building Insurance Bill 2024 (NSW); or
   8. A policy of decennial insurance within the meaning of the Building Insurance Bill 2024 (NSW).
2. Clause 157 of the Bill outlines the persons who may notify the relevant authority of a building dispute and the requirements that must be complied with when making that notification.
3. Clause 158 of the Bill states that the relevant authority can either accept or decline such notifications. Further information may be requested from the parties prior to making such a decision, while written notice must be given to the parties when the authority has decided to either accept or decline the notice.
4. Clause 159 states that the relevant authority, after accepting the notice, can:
   1. Take action, under the Building Compliance and Enforcement Bill 2024 (NSW);
   2. Refer the dispute for either conciliation or mediation; and
   3. Provide approval to the person applying to the Tribunal, if the amount in the dispute is either not greater than the amount prescribed by the Regulations or, if no amount is prescribed, then $500,000.00.

Where the relevant authority has made such a decision, it must provide the parties with written notice of that decision.

• Clause 160 outlines what is to occur if the authority refers the dispute for conciliation, which is defined as a process where the authority must try to bring the parties to a settlement of the building dispute that is acceptable to all of them (see Clause 160).

The Tribunal and Building Claims

1. Under Clause 162 of the Bill a person may apply to the Tribunal for the determination of a building claim. Where a building dispute exists that does not fall within the definition of a building claim that may be heard by the Tribunal the building dispute may be heard in another jurisdiction such as an adjudication under the Building and Construction Industry Security of Payment Act 1999 (NSW), or in the District Court of New South Wales for building disputes exceeding $500,000.00.
2. Clause 161 of the Bill describes when a building claim can be made by a person, when the secretary has given approval under Clause 159(1)(d) of the Bill or the claim relates to one or more of the following matters relating to the carrying out of the home building work, whether or not under a contract:
   1. A dispute arising out of a contract that involves the sale of land;
   2. A refusal of an insurance claim up to $500,000.00;
   3. Work carried out by a person not authorised by a licence to carry out the work;
   4. A dispute between a contractor and a subcontractor;
   5. Claims about defective work carried out by owner-builders;
   6. Cross claims relating to building claims; or
   7. A claim relating to another matter prescribed by the Regulation(s).
   8. Clause 161 of the Bill, also explains that a building claim is not:
      1. A matter concerning the Building and Construction Industry Security of Payment Act 1999 (NSW), sections 15, 16 of 25, being in regards to a failure to pay a payment claim and the ability to file an adjudication certificate as a judgement debt;
      2. A matter arising under a contract for the supply of goods or service, except as otherwise provided by Clause 161 of the Bill; or
      3. A matter arising under contract that is collateral to a contract for the supply of goods or services.
3. Clause 163 of the Bill outlines the process for any legal proceedings commenced in a court to be transferred, by the Defendant in the proceedings, to the Tribunal.
4. Clause 164 of the Bill states that the Tribunal cannot hear building claims about refused insurance claims if the claim exceeds the amount set by the Regulation(s), or $500,000.00 if no amount is prescribed. In such cases, the claim must be decided in another relevant jurisdiction, such as the District Court of New South Wales for claims exceeding $500,000.00.
5. Part 4, Chapter 7 outlines the powers of the Tribunal regarding the determination of a building claim (see Clause 165), the making of orders (see Clause 166) and the matters to be considered by the Tribunal when making orders (see Clause 167).
6. Part 4, Chapter 7 prescribes that a person against whom the Tribunal has made an order, must provide written notice to the relevant authority of that order (see Clause 169). The person must also notify the authority, once the order has been complied with.

Chapter 8 of the Bill: Architects Special Provisions

Chapter 7 of the Bill deals with the NSW Architects Registration Board and Architects Fund and is similar to the present Part 5 and Part 6 of the Architects Act 2003 (NSW) regarding the constitution of the board, its members, and the existence of an architects fund. The general wording of the new clauses is different from that of the present sections of the Architects Act 2003 (NSW)  (i.e. the board and its members are more specifically defined, and the functions of the board are different).

1. Clause 173 of the Bill defines the constitution of the board.
2. Clause 174 of the Bill defines the composition of the board (i.e. the qualifications of the members and who they must be elected or appointed by).
3. Clause 175 of the Bill provides that only the board has the power to issue or restrict the required licences for architects to carry out architectural work.
4. Clause 176 of the Bill stipulates the various functions of the board, (such as prescribing certain accredited courses of study for architects to undertake and receiving and investigating complaints about architects).
5. Clause 179 of the Bill concerns the architects fund.
6. Clause 180 of the Bill outlines how payments are to be made to and from the fund.
7. Clause 181 of the Bill makes it an offence to falsely claim to be an architect.
8. Clause 182 of the Bill also prohibits a person, who is not an architect, from offering to arrange for the carrying out of work by an architect, if that work will not be carried out by an architect.

Chapter 9 of the Bill: Gas and Electrical Work

Chapter 9 of the Bill focuses on electrical and gas installations. Namely, Clause 185 provides that a person who performs such work must do so in accordance with the standards or requirements prescribed by the Regulation(s). Chapter 9 also prescribes requirements regarding electrical meter installations (see Clauses 191 to 193), medical gas installations (see Division 2, Part 3), and the manner in which serious accidents and incidents must be reported and investigated (see Part 4).

Chapter 10 of the Bill: Certification Work

Chapter 10 of the Bill sets out the key responsibilities and offences related to certification work. Licensed individuals will be personally liable, even when working for Councils and Body Corporates, who must ensure that only licensed individuals carry out such work. Part 2 prohibits conflicts of interest, whether financial, personal or professional. Penalties apply unless an individual is granted an exemption by the relevant authority, or under any exemptions outlined by the Regulations. Part 3 makes it an offence to knowingly issue false certificates or to act with, or be influenced by, improper conduct.

Chapter 11 of the Bill: Certificates of Compliance for Specialist Work

Chapter 10 of the Bill outlines the compliance obligations for specialist work, such as plumbing, drainage, electrical and medical gas systems. Part 2 outlines that certain work must be notified to the relevant authority prior to starting, with exceptions for emergency work which must instead be reported afterwards. Part 3 provides the relevant authority with the power to inspect the work and related documents. The individuals responsible must ensure that the work is accessible and must be present during such inspections. Part 4 prescribes that upon completion of the work, the responsible person must submit certificates of compliance and other relevant plans.

Chapter 12 of the Bill: Duty of Care, Offences & Personal Liability

Duty of Care

Part 2, Chapter 12 of the Bill establishes that anyone carrying out building work, including the supply of building products, owes a non-delegable duty of care to both current and future landowners for the purpose of avoiding economic loss from defects relating to the work, this duty of care applies to a natural person. In particular:

1. Civil actions for defective work must be brought within 10 years after the completion of the work (see Clause 233).
2. Owners corporations and associations can claim economic loss for defect related costs, including the cost of alternative accommodation (see Clause 234).
3. This duty of care cannot be contracted out of, and operates in addition to other duties of care, statutory warranties and other obligations (see Clauses 236 to 237).

Offences

Part 4 sets out offences relating to building work and requires compliance with the National Construction Code and other regulations, with penalties up to 1,000 penalty units (see Clause 241). In particular:

1. Clause 244 provides that the burden of proving a reasonable excuse for an offence, against either one of the clauses of the Bill or the Regulation(s), rests with the defendant.
2. Penalty notices may be issued for certain offences, allowing for payment without the need of court proceedings (see Clause 245).
3. Proceedings for any such offences are to be dealt with in either the Local Court or Supreme Court, depending on the monetary penalty.

Personal Liability

Clause 251 of the Bill protects certain individuals from personal liability, including the relevant authority, authorised officers, Architects board or subcommittee members and inspectors, from personal civil liability for actions taken in good faith while performing their functions under the building legislation.

Key Take Aways

1. Comprehensive Regulation of Home Building Work:

The Bill sets strict rules on contracts and their form, building approvals, and the dispute resolution process in order to protect consumers and ensure quality and compliance in all home building projects.

2. Strong Consumer Protections and Statutory Warranties:

Homeowners and subsequent landowners benefit from mandatory warranties covering major defects, with clear duties on contractors and protections against unfair contract terms or excessive deposits.

3. Clear Processes for Approvals and Dispute Handling:

Building and completion approvals are tightly regulated, with a strict pathway for resolving building disputes through conciliation, mediation, and Tribunal claims.

4. Accountability and Personal Liability:

Strict duties of care, offence provisions, and personal liability protections to ensure that licensed professionals and responsible parties uphold high standards, while allowing authorities and board members to have immunity when acting in good faith.

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