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Govt invest $35 million to weed out dodgy builders

The Lismore App

09 June 2024, 1:23 AM

Govt invest $35 million to weed out dodgy builders

The NSW Government will invest in Building Commission NSW’s digital capabilities to weed out more dodgy builders, as the watchdog reveals details of a recent joint-operation that protected hundreds of buyers and renovators.


Building Commission NSW has been supercharged to lift building standards across the state as the Minns Labor Government tackles the housing crisis.



The 2024-25 NSW Budget will inject $35 million into the Commission to help ensure quality home builds and renovations.


The funding will drive the Commission’s adoption of new digital capabilities to use data, intelligence and analytics to track high risk builders, watch them closely and act to get them out of the sector. 


The Budget commitment follows a joint data matching operation between the State Insurance Regulatory Authority (SIRA) and Building Commission NSW earlier this year, exposing 13 building businesses for failing to hold adequate home builders compensation insurance.


The Home Building Compensation Fund (HBCF) is the last line of protection for families building their own homes if they’re ripped off or their builder goes bust, and builders are required by law to have coverage. 



The failure to hold adequate insurance left more than 226 mum and dad home builders and renovators at risk of financial devastation in the event that the builder was forced into administration. In 2023 there were 72,422 home building and renovation projects in NSW and every one relied on HBCF to protect homeowners in the event a building business failed.


In addition to strengthening digital and data analytics capabilities, the 2024-25 NSW Budget funding will also see the Commission help deliver better homes by:

  • Providing boots on the ground to examine the quality of buildings and force developers to fix substandard construction work.
  • Building on Construct NSW and working with industry to design courses that supercharge the capability of the construction industry, and 
  • Getting people into homes faster by digitising compliance certificates, making it quicker for tradies to get and the Building Commission to verify quality work. 


Established just over six months ago, Building Commission NSW has set a new benchmark for building oversight.



In that time, the Commission has slapped more than 40 rectification orders on dodgy apartment buildings and inspected more than 300 freestanding homes. 


Building Commission NSW has also cancelled, suspended or disqualified 146 licences as it works to rid the industry of risky players including builders, certifiers and design practitioners.  


This is part of the Minns Labor Government’s plan to build better, safer communities for NSW. A plan to protect consumers while restoring confidence in the building sector.


A plan to build a better NSW.


Minister for Building Anoulack Chanthivong said, “We need more homes in NSW and we need them to be built to the highest possible standard and with the best protections for mum and dad home builders.  


“As the Minns Labor Government works to deliver ambitious housing targets, we’re moving beyond the one man band approach taken by the previous government. 



“We created Building Commission NSW to lift standards across the sector, and that’s exactly what it’s doing. 


“This investment takes Building Commission NSW to the cutting edge with boots on the ground and the technology it needs to target resources where they’re needed.” 


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