Cost will increase under the new NSW DBP Act!.

WHY?

The purpose of the DBP Act (Design and Building Practitioners) was to restore public confidence in the NSW building industry by regulating the activities of those who design and construct new buildings.  

From 3 July 2023 the Act will apply to buildings containing a class 3 or 9c part – that covers boarding houses, hostels and aged care buildings, among others.

The new act will stipulate more requisites including need for registered building practicioners, relevant insurances, with costs and time required to adhere to the Act administration.

But Who Really Pays ... Developer, Builder, Contractor or the End User?

If work has commenced prior to 3 July, the changes under DBP will require an upload of your plans.

For current developers of class 3 buildings (hostels, boarding houses, group homes) or Class 9C buildings (which include aged care, NDIS with nurse on premise)

All contractors are required to meet these acts.

Costs will increase under these acts, impacting profits for developers who have an unexpected new cost to absorb.  This will create further tensions between developer, builder and contractors.

As pre-sales and pre-leases are fixed and in many cases the developer will not be able to charge for these escalating costs.

Developers and contractors/builders will be required to enter into new agreements which will add tensions to existing relationships

THE IMPACT?

This will impact the industry through increased tensions, new agreements required which will cause further delays to project commencement as disputes will arise over which party is commercially liable under the new acts - or how the costs are re-distributed.

The impact on the end user is inevitably a price increase.

“Construction and development in NSW has been cavalier and acted like the wild wild west since the 70s’.

Quality of design, architecture, liveablity is sub par simply because of the volume of developer builders in NSW compared to any other state in the country

These Acts are introduced to curb the behaviour of predominantly builder developers who are driven by cost not quality, leaving the end user with average result.

In comparison, the building design quality in Victoria in particular projects 2-10k from Melbourne CBD, the quality of architecture and design is far superior to NSW largely to - In Victoria developers are developers - builders are builders - and rarely are the two merged.

Therefore quality control is far better in Victoria than NSW.” Anthony Ferraro : Salvest.com.au