NSW has introduced the Building (Approvals and Practitioners) Bill 2026, but it is not yet law. It is currently before the Legislative Assembly, awaiting second reading debate. Industry should treat the reforms as proposals until Parliament, regulations and commencement dates are settled.
The Bill seeks to consolidate approvals, practitioner registration, compliance declarations, fire safety, prefabricated and modular construction, and completion approvals into a single new framework. It also retains a statutory duty of care for those carrying out construction work.
There are positives. Developers and contractors may benefit from clearer staged approvals, digital lodgement, more structured variation pathways and a dedicated framework for prefabricated construction. Consumers may benefit from stronger declarations, clearer completion approval requirements and enhanced enforcement.
What the reforms seek to deliver
The Building Productivity Reforms are part of a targeted suite of measures aimed at supporting the state’s housing supply efforts. The government has stepped back from the full consolidation of building legislation proposed under the Draft NSW Building Bill 2024, though a staged approach remains likely over time. The legislation aims to boost housing supply by reducing red tape and streamlining approvals. It is to be the first law in Australia to formally recognise and regulate modern methods of construction, including prefabricated and modular building.
In practical terms, the reforms target four areas:
- Support for the uptake of prefabricated homes and modular buildings,
- Faster and more streamlined building approval processes,
- More timely and cost-effective resolution of building defect disputes, and
- Enhanced certifier accountability.
The broader picture
The broader theme is harder: reform is now constant. As Bellrock noted in The one Bill to rule them all: Building Bill NSW 2024, earlier consolidation proposals already contemplated expanding duties, registration and compliance obligations across more building classes. We expect further change is coming.
Bellrock’s Construction Professionals Insurance Market Update 2025 also observed that DBP compliance costs were already causing delays in an industry under pressure to deliver more housing.
That is the tension. Further reform may improve quality and accountability, but it may also add cost, red tape and uncertainty to a market already challenged by high construction costs, labour constraints, insolvency risk and constrained insurance availability.
Implications for construction professionals
For construction professionals, the retained duty of care remains central. Bellrock previously warned in The Building Practitioners Act: Implications for Construction Professionals and their Insurers that the DBP Act had material implications for insurance requirements, premiums, excesses and coverage appetite. The courts then confirmed in High-rise to Risk: Design and Building Practitioners Act Update that the duty is broad and increases litigation exposure.
For builders and design and construct contractors, insurance remains critical. Bellrock’s Design and Construct Professional Indemnity Insurance guide describes D&C PI as cover for firms assuming both design and construction responsibilities, responding to civil liabilities arising from professional services including the acts of subcontractors and consultants.
The reforms may create a more risk-mitigated environment over time. Equally, they may be viewed as further legislative scaffolding over an already complex system.
A note on personal liability
The reforms are a timely reminder of the personal liability created under the D&BP Act for all those involved in ‘construction work’, including the manufacture or supply of a building product used in building work. Personal liability is a serious issue where an employer does not hold appropriate insurance, did not purchase run-off cover or has become insolvent. Bellrock has developed a personal liability policy that protects individuals in exactly this scenario. Please contact us for further information.
As always, insurers will need to assess how these changes affect liability across construction professionals, contractors, developers, certifiers and other stakeholders. The industry should prepare for another period in which legislation, regulation and ultimately the judiciary must navigate an ever-changing risk landscape. Bellrock’s ongoing thought leadership across the industry will continue to equip our clients appropriately for what is to come.
