The building and construction industry affects millions of lives, and the role of the Building Commission NSW has never been more important. It’s responsible for making sure residential construction is safe, reliable, and built to a high standard. Leading the charge is James Sherrard, the new Building Commissioner. He’s focused on lifting compliance, rebuilding trust, and setting a higher bar for the whole industry.
(1) What are the key priorities for the Building Commission NSW in 2025, and how do these align with the broader objectives of the construction industry in NSW?
My predecessor took on the role as the inaugural NSW Building Commissioner at a time when the industry needed to be put on notice. In his time, he drastically changed the construction sector, highlighting the critical role of the Commission in lifting building quality and restoring confidence in the building industry. But things are changing, the sector is improving, and industry is now aware of the powers we have at our disposal. In this new phase, we need to engage closely with industry to find wholistic solutions to issues which lead to bad building practice.
One of our top priorities is to educate the industry about the economics of quality construction. In essence, it’s about showing developers and practitioners that it’s more cost effective to do the job right the first time, rather than being forced by the Commission to fix the issues they have left behind. There needs to be clear expectations for building practitioners and developers around the state about ‘what good looks like’. And to do this we’re going to leverage education programs, like Construct NSW digital learning which in the long run will avoid situations where consumers are left to deal with defects associated with poorly built homes.
To support our education efforts, we’re pushing ahead with new building reforms via a suite of legislative reforms, including the forthcoming Building Bill. The Building Bill, which we have consulted closely with industry on, aims to simplify the outdated legislative framework that underpins the construction sector in NSW. Once this piece of legislation is in effect, the industry will have clear guidance, laws and regulations that they need to adhere to. Making it easier for the sector to do the right thing and giving the Commission the framework to pursue players doing the wrong thing.
But just because one of the Commission’s main focuses is on education and legislative reform this year, doesn’t mean our role as ‘tough cop on the beat’ is going by the wayside. The Commission will still doggedly pursue players doing the wrong thing. We plan to do this by enhancing our compliance efforts: increasing our mix of inspections types on buildings, increasing our focus on players with a bad track record and utilising data-driven techniques to home in on players doing the wrong thing who may have otherwise flown under the radar.
(2) How does the Commission plan to use data-driven approaches to improve building quality and compliance in the coming year?
The Commission has developed advanced data analytics techniques combined with expert industry knowledge to target the riskiest building sites. Last year, the Commission received additional resources from the NSW Government, which allowed us to expand our already highly effective intelligence capability and strengthen operational teams. These enhancements enable us to leverage data more effectively to improve compliance and building quality across the sector.
Inspectors play a crucial role in validating and refining BCNSW’s risk assessments by collecting data directly from building sites. This includes identifying the types and frequency of defects and the practitioners involved. If our inspectors consistently report defects linked to a particular company, we will adjust our risk assessments, flagging the company for further audit or investigation. This process also helps identify areas where targeted interventions, such as training or updated compliance guidance, are needed to address recurring structural or electrical issues.
Beyond inspector-led intelligence, BCNSW is advancing several other data-driven initiatives such as strengthening cross agency intelligence collaboration and developing advanced associated mapping tools to analyse networks of risky players, uncover hidden connections and better understand their operations.
These initiatives will further refine our ability to identify high-risk operators, target interventions more effectively, and improve compliance outcomes.
(3) Could you elaborate on how the “Anywhere, Anytime” inspections program will evolve in 2025?
In 2025 we’re planning on conducting an increasing mix of inspection types across all buildings in metropolitan, regional and rural parts of NSW. Some will be scheduled, others will be random, some data-led, while we expect a significant proportion to be as a result of tip offs and complaints. The focus of all these inspections will vary, from targeting certain building elements to zeroing in on a particular geographic or regional area. While our schedule isn’t set in stone, we plan on visiting Tweed Heads, Tamworth, Central Tablelands and Wagga, in line with our commitment to ensuring building quality is maintained across NSW, while also focusing on areas where construction is booming.
The Commission is also dedicated to using innovative methods and inspection techniques to identify defects. Last year we conducted a range of inspections in Sydney, Newcastle, Wollongong and the Central Coast using a Schmidt Hammer, which measures the elastic properties or strength of concrete, to identify risks in quality of concrete and variations in strength across column and slab structures. During this concrete quality blitz, the Commission visited 20 buildings and found around 60 per cent of them had concrete-quality concerns. All of the defects our inspectors identified during the compliance operation could be rectified and none posed a public safety risk, but we still issued Orders to ensure the defects are resolved before the buildings are finished and residents move in. Those rectification works are underway and we’re actively monitoring the situation.
As we move into 2025, I expect we’ll be utilising more of these techniques to bolster our existing inspection schedule. This increasing use of new techniques, along with more inspections across different parts of NSW will help keep quality at the forefront of the construction sector, by holding operators not delivering quality to account.
(4) How does the Commission balance the need for vigorous enforcement with fostering a collaborative relationship with the industry?
We need to make sure every part of the construction sector comes along on the journey towards improving building quality and boosting housing stock in NSW, whether it be developers, builders, certifiers, architects, engineers and consumers.
On this journey, we need to balance our enforcement activities with our engaging the sector as a whole to ensure they have a say in its future direction. We’re going to achieve this balance by continuing to pursue players doing the wrong thing and ensuring we take what we’ve learnt through our enforcement activities to the sector, so they can improve their building practices.
When we conduct our enforcement activities, whether in be inspections, issuing orders, or prosecutions, we’re constantly assessing and triaging the information we collect. That information often reveals trends about the extent and reasons for non-compliance and what areas may need to be improved in the industry. For instance, if our inspectors consistently spot an emerging type of defect, the Commission will work to develop preventative measures such as industry training. It might also indicate that a certain part of the legislative framework needs to be updated, or a certain part of the industry may need more guidance on what is required of them.
To bolster our communication with industry, the Commission is hosting and taking part in a range of events through 2025 to bolster and improve our relationships. Some of the events coming up in the coming months include, the Net Zero Construction Summit, Sydney Build Expo and the Association of Australian Certifiers conference.
(5) How will the Commission identify and encourage developers to rectify defects in residential buildings before they pose risks to residents?
In 2025 the Commission is going to take a multi-pronged approach to identifying and encouraging developers to rectify defects in residential buildings. The key areas of our strategy include enhancing our compliance activities, continuing to strongly enforce the Design and Building Practitioners Act (DBP) and increasing our engagement with industry.
The increasingly mixed type of inspections we will undertake in 2025 will look at a range of different types of works all across NSW – not just common defect areas. And if the Commission’s inspectors find defects, we’re not going to shy away from using the full range of our regulatory powers. Whether it be rectification orders, prohibiting the issuing of an occupation certificates stop work orders, or in certain more complex matters negotiating undertakings.
We’re also going to continue to enforce the rules set out in the DBP Act, which helps promote compliance with the Building Code of Australia (BCA) at the design and building stage before occupation. The DBP forces practitioners to declare their work is up to scratch at certain stages, ensuring someone can be held accountable for defective work. The Commission will continue to audit design and building practitioners to evaluate compliance with the DBP Act and building standards.
When bad players in the industry are held accountable, the consequences act as a deterrent for others who may be carrying out defective work. But we also need to affect a broader cultural change, to really see a decrease in defects across the sector. That’s going to come in the form of increasing our engagement with industry, to stress the importance of the economics of quality construction.
(6) Are there plans to expand the library of common defects, and how can builders and developers use this resource more effectively?
The common defects library has been a big success so far, helping practitioners identify and communicate issues commonly found in buildings around NSW. The library is drawn from data gleaned by our inspectors and since its launch we have not seen a material change in the different types of defects commonly encountered by inspectors. But as we conduct an increasingly mixed type of inspections through 2025 and further into the future, we’ll make sure that those defects are included if we see evidence of them becoming more prevalent across the sector.
When it comes to builders and developers using the Common Defects Library more effectively, they should consider including common defects in their standard inspection and testing plans to ensure these defects do not eventuate. To help them with this, the Commission recently published the defects library in XML format to assist industry in integrating the list in digital tools, such as inspection programs.
(7) What role will education play in helping practitioners deliver quality construction?
Education has and continues to play a massive role in helping practitioners deliver quality construction. It’s about equipping practitioners with the knowledge, skills and best practices needed to meet industry standards and helping them understand what quality looks like and how to achieve it. Without proper education, and ongoing professional development, tradespeople can’t keep up with industry standards and if they can’t keep up with industry standards, then consumers suffer.
In 2020, in concert with TAFE NSW, we launched the Construct NSW digital Learning Platform. The platform delivers newly developed courses, which aims to close the education and skills gaps in the building and construction industry. The courses are high quality, informative, interactive and may qualify practitioners, of all licence types, for Continuing Professional Development points. The platform currently hosts 36 courses and has a large pipeline of courses in development, including a new Microskills course on reinforced concrete in multi-storey construction. The new course is aimed at Site Foreman’s, Construction Managers, Builders and Concreters and will improve their ability to interpret plans and execute work according to specified requirements.
So far, we’ve had around 84,000 enrolments in the Construct NSW digital Learning Platform courses, playing a huge role in ensuring tradespeople are adequately trained to do the job they’ve been hired to do.
(8) How is the Commission engaging with industry stakeholders to set clear expectations of “what good looks like”?
The more we engage with the industry, the stronger message we can send about “what good looks like” and set an example for the construction industry to follow. What we’ve found is that the more guidance we provide to the sector or individual players about best practice, the better outcomes for consumers and the industry.
The Commission already runs a range of initiatives designed to foster collaboration, education and open dialogue in the construction sector. Some of the critical initiatives we’re involved in includes connecting directly with stakeholders via roundtables, industry meetings and other forums to provide clarity on standards, share best practice and gather feedback. We also participate in industry events, using these types of platforms to reinforce key messages, address sector specific challenges and highlight real examples of excellence.
We plan on continuing to hold and participate in these types of events into 2025 and the future. But we’re going to dig into some more targeted engagements too, with a forthcoming roundtable in February set to discuss housing liveability. The roundtable will bring together around 60 leading advocates and representatives from the disability sector as well as industry to make sure the Government fully understands industry views and understands the latest trends in this area.
(9) What legislative reforms are being prioritised for 2025 to strengthen regulation and promote industry productivity?
Building the right legislative framework for industry to adhere to is one of the Commission’s key goals in 2025. We want to make it simpler for industry to understand so there’s increased productivity, while also prioritising consumer protections.
The Government has committed to developing a single plain English Building Bill to modernise our existing patchwork legislative framework. Delivering on this is our main legislative priority for 2025.
The Building Bill aims to more clearly define what ‘building work’ is, who can do that work, what standards the work must comply with and how consumers will be protected. It will also simplify Building Commission NSW’s enforcement powers and make insurance obligations clearer.
(10) The Commission has achieved a 20% reduction in waterproofing defects since 2021/22. How will you sustain or accelerate this progress?
The 20 per cent reduction in waterproofing defects has been a great success story for the Commission and is a testament to not only our compliance activities but our engagement with industry. As we move into 2025, we’re hoping to see a further reduction in waterproofing defects and one of the ways we’re hoping to do this is via research we’re currently engaged in with the University of Wollongong (UoW).
Currently there are around 90,000 buildings in NSW which are 20 or more years old, with one of the major age-related issues cropping up relating to waterproofing. Typically, this shows itself in the forms of cracking around membranes and tiles. Rectification works for waterproofing can be extremely expensive for homeowners, but the research we’re engaged in with UoW hopes to find cost effective, market solutions to these issues. As part of their research they created lifelike models to test different methods of waterproofing using simulated events, like balcony flooding.
Based on the results gleaned from this research recommendations are expected to be made on new standardised long-term and remedial solutions to waterproofing issues. If these new solutions are accepted by industry, certifiers, insurance companies and builders, it would be a massive breakthrough on this issue and over time we hope it will decrease the number of waterproofing issues we see.
(11) What are the biggest challenges facing the Commission in 2025, and how do you plan to address them?
The Commission is facing several challenges in 2025, including the need for simpler regulation, data-driven improvements to reduce costs and enhance value in the construction industry and supporting a major increase in NSW housing supply. Addressing these challenges involves identifying and resolving issues early in the construction process to ensure smoother and more efficient operations. One way we are doing this is by working with industry to build skills and capacity within the sector, fostering a more equitable and reliable building industry.
Another major challenge is ensuring effective collaboration and engagement with industry stakeholders. The Commission is addressing this by working closely with entities like the Master Builders Association and the Owners Corporation Network to take on feedback from members and address regulatory concerns.
By driving strategic reforms and embracing innovation we hope to rebuild public trust and set new benchmarks for excellence in residential construction. These efforts are part of our broader vision to ensure quality, safety, and reliability in residential construction, ultimately contributing to a stronger and more trustworthy construction industry in NSW.
(12) Looking beyond 2025, how do you envision the role of the Building Commission NSW evolving in the construction industry?
The Commission continues its critical regulatory role in weeding out bad players while working collaboratively with industry to life capability and skills. As the sector grapples with rising demands for quality, safety, and sustainability, we’re evolving to meet these challenges head-on. By adopting a proactive regulatory approach and leveraging data-driven insights, we aim to pre-emptively address potential issues, ensuring smoother and more efficient construction processes. This forward-thinking strategy not only reduces costs but also enhances the overall value delivered to stakeholders.
We will also play a crucial role in managing the evolving landscape of modern construction methods. As the construction industry embraces new technologies and innovative practices, the Commission is tasked with ensuring that these advancements are implemented safely, efficiently, and in compliance with regulatory standards. This involves staying abreast of the latest developments in construction techniques, materials, and technologies, and adapting regulatory frameworks to accommodate these changes. Use of methods like prefab are on the rise and a 3D printed house can be a reality – all come with their own benefits and risks that need to be effectively managed to ensure safety and quality protections.
