Building Act 2016

Who is affected

• Owners of premises (defined widely) — principal duties to engage qualified persons, obtain permits, maintain buildings, pay fees and comply with orders (eg. ss.4, 50, 206, 296).
• Licensed builders, licensed plumbers and designers — licensing, inspection, certification and liability obligations (eg. ss.5, 45, 48, 44, 209–213).
• Building surveyors and permit authorities (primarily councils) — new duties, inspection powers, record keeping and enforcement responsibilities (eg. ss.28–36, 24–27, Schedule 1).
• Director of Building Control and Minister — central administrative, oversight and intervention powers (ss.15–21, 8, 9, 27A–27B).
• Professionals who provide reports/certificates and their employers — evidentiary roles and potential regulatory exposure (eg. ss.42, 321).

Why it matters (official purpose and practical trade‑offs)

• Officially: the Act is designed to ensure work meets or exceeds national construction standards, protects health and safety, improves accessibility and environmental efficiency, and supports an efficient, competitive industry (s.3).

• Testing the official aims against trade‑offs and incentives:

  • Compliance and safety: the Act centralises inspection and certification (certificates of likely compliance, inspections, final certificates). That focuses regulatory oversight on certified checkpoints (ss.98, 100, 152). Benefit: clearer lines of responsibility and presumptions of compliance (ss.313–315). Cost: administrative burden on owners, small builders and councils (frequent certificates, record retention, fees — ss.27, 206, 293, 296).
  • Enforcement and corrective power: the Act gives permit authorities and building surveyors strong remedial powers (notices, orders, demolition, council‑performed works and cost recovery — ss.237–271). Benefit: swift remedial tools to protect public safety. Cost: increased compliance risk and potential for disputes about discretionary orders; owners bear financial downside if orders are used.
  • Centralisation vs local discretion: Director powers to make determinations, accredit products and direct permit authorities (ss.18–21, 27A–27B) concentrate technical decision‑making at state level. Benefit: consistency of standards and product approvals. Cost: greater bureaucratic discretion and a heavier role for central agencies; potential delays from additional state processes.
  • Liability and time limits: the Act sets time windows for rectification obligations and accrual of causes of action (eg. rectification windows s.209, s.211; limitation periods s.327). Benefit: provides certainty for industry and insurers. Cost: short rectification windows can shift repair costs onto builders or current owners and raise disputes about discoverability and forensic proof.
  • Fees and the Fund: a building administration fee (0.1% of contract price or prescribed amount) funds administration (ss.296–301, 329). Benefit: funds regulatory activity. Cost: a direct fee on construction increases project cost and administrative compliance.
  • Market impacts: licensing and certification requirements increase entry costs and compliance overheads for small operators and owner‑builders (ss.28, 45–49, 46). This may favour established licensed businesses while reducing the scope for informal operators.

Who pays, who decides, what behaviour changes

• Who pays: owners/responsible persons pay fees, perform protection work, maintain insurance and may pay to rectify orders or have councils recover costs (ss.83, 269–270, 296, 302). Builders and plumbers bear rectification liability if defective work is established within stated periods (ss.209, 211, 213).
• Who decides: building surveyors and permit authorities make most operational decisions on permits, inspections and orders; the Director of Building Control sets determinations, guidelines and may intervene; the Minister can direct or delegate in special circumstances (ss.15–21, 24, 27A–27B, 8–9).
• Behaviour changes the law seeks to cause: more formal certification and inspection steps before and during work; use of licensed practitioners and accredited products; earlier notification of work starts/completions; retention of records and maintenance schedules; quicker remediation where work is defective; increased recourse to formal permits for unapproved work (eg. ss.96–104, 129–153, 154–178, 237–250).

Implementation risks, compliance burden and unintended consequences

• Administrative load on councils and permit authorities: keeping registers for many document types, forwarding copies, record retention for 10+ years (s.27, Schedule 1) increases resource needs; Director can appoint substitute permit authorities (s.24(6)–(7)), shifting workloads.
• Discretion and variability: many provisions permit judgments (eg. when to consent to partial compliance, impose conditions, or issue orders — ss.53, 145, 246). That creates case‑by‑case variability and potential disputes or appeals (Part 19).
• Concentrated benefits vs diffuse costs: accreditation powers (s.18) and state‑level determinations (s.20) can benefit specific product manufacturers or accredited service providers; costs are borne broadly by owners and builders through fees and compliance work.
• Capture and rent‑seeking risk: where the Director or permit authorities set product or area determinations and accreditations, there is potential for regulatory capture if consultation and publication safeguards are weak. The Act does require publication and stakeholder consultation for guidelines and determinations (ss.19(2)–(3), 20(2)–(3)), which mitigates but does not eliminate the risk.
• Contract and market effects: stricter certification, inspection, and rectification obligations can increase insurance and compliance costs, which may raise construction prices and favor larger firms better able to absorb administrative overhead.

Practical pointers (concrete sections to check for stakeholders)

• Owners: read duties and penalties at ss.50, 206, 296–302 (fees), and orders/notice regimes ss.237–250.
• Builders/plumbers/designers: licensing and rectification rules ss.5, 45, 48, 209–213, and the offences/penalties Parts 18 and 21 (ss.303–307).
• Councils/permit authorities: appointment, records and enforcement duties ss.24–27, Schedule 1, and recovery powers ss.269–271.
• Professionals and suppliers: accreditation, certification and evidentiary rules ss.18, 19, 321.

Overall, the Act establishes a comprehensive, state‑level regulatory system that formalises permit/notification pathways, centralises technical oversight and enforcement, and embeds fee and recovery mechanisms. The practical trade‑offs are stronger regulatory control and clearer safety mechanisms at the cost of greater administrative obligations, fees, and discretionary enforcement power concentrated in the Director, permit authorities and building surveyors.