Understanding the 2024 Changes to Class 2 Building Requirements in NSW

The recent updates to the Design and Building Practitioners Regulation 2024 bring several key changes that will impact builders and practitioners working on Class 2 buildings in New South Wales. These updates, which involve compliance, insurance, and exemption protocols, have been designed to support industry adaptation and ensure that construction and renovation practices remain safe and up-to-date. Here’s a breakdown of what these changes mean for Class 2 building projects.

Professional Indemnity Insurance Requirement Extended

A critical change is the 12-month extension for mandatory professional indemnity insurance for building practitioners, now required by 1 July 2025. This extension acknowledges the limited insurance options currently available for practitioners and allows additional time for industry-specific products to develop. This change primarily affects builders who work on Class 2 buildings, as it provides them with a more extended period to secure appropriate insurance coverage. Until then, statutory warranties under the Home Building Act 1989 continue to protect NSW homeowners against defective work.

Ongoing Compliance for Class 2 Buildings

While the application of the Design and Building Practitioners Act (DBP Act) for Class 3 and 9c remedial building work has been delayed until July 2025, the requirements for Class 2 buildings remain unchanged. Builders and designers working on Class 2 buildings, which include apartment complexes and multi-residential buildings, must continue to comply with the Act for any alterations, repairs, or renovations. This involves meeting all regulatory obligations, ensuring transparency, and maintaining the integrity of compliance declarations within the NSW Planning Portal.

Clarification on Exemptions for Class 3 Buildings

As of 1 July 2024, certain Class 3 buildings, such as hotels and motels, may now be exempt from the DBP scheme if they meet specific criteria. However, this exemption does not apply to Class 2 buildings, which means that practitioners in Class 2 projects are still required to adhere to the DBP scheme, including design and building compliance declarations.

Adapting to Compliance Declarations

For Class 2 buildings, practitioners are still required to submit all necessary design compliance and building compliance declarations via the NSW Planning Portal. These declarations must be accurate and timely, as they serve as a record of compliance with NSW’s regulatory requirements. Ensuring these are properly managed will remain a priority for Class 2 projects to avoid penalties and ensure consumer protection.

Preparing for 2025 Compliance

The delay in mandatory insurance requirements and expanded compliance deadlines offers a window of opportunity for builders in Class 2 projects to review their current practices, ensuring they meet all guidelines by July 2025. Staying updated on legislative changes and consulting with legal and insurance advisors will be essential to adapt smoothly to these new requirements.

For more information or assistance with navigating these changes, feel free to reach out to our team at Steller Group. We’re here to help ensure your Class 2 building projects stay compliant and up to industry standards.