Compliance and enforcement policy

Purpose of this policy

Building Commission NSW is the regulator for the NSW building and construction industry, with regulatory powers provided through various legislation. 

Our primary regulatory responsibilities include:

• Regulating the quality of residential building work, specialist work and class 1, 2, 3 and 9c building projects.
• Regulating persons that require a licence or some other form of authority to provide building and construction services including builders, architects, designers, specialist trades, engineers and certifiers.
• Administering compliance requirements associated with regulatory schemes such as the Strata Building Bond and Inspections Scheme and security of payments.

We also seek to improve compliance outcomes by working with key stakeholders across the sector to help increase awareness and understanding of legislated rights and responsibilities.

The purpose of this policy is to provide information about the approaches that we will apply when using our regulatory powers and how we will undertake compliance and enforcement action. 

This version of the policy was released in January 2026. It will be reviewed every two years or as otherwise determined by the Building Commission NSW Executive.

Legislative framework

The primary legislation that we apply for the purpose of this policy are:

• Building and Construction Industry Security of Payment Act 1999
• Building and Development Certifiers Act 2018
• Building Products (Safety) Act 2017
• Design and Building Practitioners Act 2020
• Environmental Planning & Assessment Act 1979 (part only)
• Fair Trading Act 1987 (part only)
• Gas and Electricity (Consumer Safety) Act 2017
• Home Building Act 1989
• Plumbing and Drainage Act 2011
• Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020
• Strata Schemes Management Act 2015 (part only), and
• Regulations and other instruments made under those Acts.

We will also apply various technical compliance requirements that are referenced in legislation (e.g. the National Construction Code (NCC), various Australian Standards, the Certifier Practice Standards).

Depending on the nature of a compliance matter, we may also utilise relevant regulatory powers or procedures outlined in other legislation (e.g. Crimes Act 1900, Licensing and Registration (Uniform Procedures) Act 2002). 

Learn more about legislation administered by Building Commission NSW

Our approach to compliance and enforcement

Our primary focus is on reducing risk to the NSW community by prioritising our compliance and enforcement resources towards activities that pose a greater threat to health, safety or economic loss. We will prioritise pursuing enforcement action in support of the following strategic objectives:

• To ensure public confidence in the licensing and regulatory schemes that we regulate.
• To protect consumers, industry and the NSW public from risk of serious physical or financial harm.
• To support the general and specific deterrence of serious misconduct.

We will adapt our approach to compliance and enforcement to suit the different types of services, practitioners, businesses and consumers that we regulate. This includes, for example, us adapting to whether the consumer involved is an individual person or an owners corporation, and consideration for the specific nature of the service being supplied (e.g. professional advice, plumbing repairs, declared designs, house build). It also includes adapting our approach when practitioners are also regulated by other bodies (e.g. architects regulated by the NSW Architects Registration Board).  

We will also apply a range of strategies to help support and enhance compliance by people and businesses working in NSW’s building and construction industry. This includes working closely with industry, council and consumer stakeholders to support best-practice behaviours and encouraging a productive and customer-centric industry culture.

Guidance and education

We will seek to clearly articulate compliance requirements and provide appropriate guidance on how they can be met. Compliance advice may include referring to industry-specific guidance or best-practice guidelines, however it will not extend to providing legal advice.

We will also communicate compliance levels and other conduct-related observations to provide key stakeholders with relevant information about the regulatory issues we are focusing on.

Identifying breaches

We generally become aware of potential breaches and non-compliance through: 

• complaints from individual consumers, owners corporations, practitioners, industry bodies, local councils or members of the public,
• undertaking compliance activities such as audits, inspections and investigations,
• receiving referrals from councils, other regulators and law enforcement agencies, and
• monitoring industry behaviours and other general performance indicators (e.g. size of industry, insolvency rates).

Complaints and referrals arise at different points in the lifecycle of building work, requiring us to adjust our response. For example, issues can relate to work that has not yet commenced (e.g. a contract), issues arising during the provision of the service (e.g. during repair work or during construction of a building) or issues identified after work has been completed (e.g. defective work, unconscionable conduct). We therefore encourage people or organisations affected by potential or actual non-compliance to communicate with us at the earliest opportunity.

When we become aware of a potential breach, we will triage and assess the matter for potential compliance or enforcement action according to a risk-based framework. The application of this process will mean that not all matters are progressed for potential compliance and enforcement action.

Compliance audits and inspections

In general terms, we conduct audits and inspections across building projects, declared designs and licensed practitioners. These compliance activities are generally focused where our data and intelligence holdings indicate a higher likelihood of non-compliance. However, there will also be random selections as part of ensuring that we engage with all of industry and to provide us with broad information on industry performance and emerging issues.

If a non-compliance is identified through an audit or inspection it may result in us issuing a ‘regulatory notice’. The specific name of the notice and the process for issuing it will vary according to the nature of the non-compliance and the specific regulatory powers outlined in legislation. 

Some examples of the most common types of regulatory notices we issue are:

• Written Direction Notice (WDN) issued to entities regulated by the Gas and Electricity (Consumer Safety) Act 2017 or Plumbing and Drainage Act 2011.
• Rectification Order (RO) issued to entities regulated by the Home Building Act 1989.
• Building Work Rectification Order (BWRO) issued to entities regulated by the Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020 or the Design and Building Practitioners Act 2020. 

Learn more about our audit strategy

Enforcing compliance

Unless there is an immediate risk of harm, we will enforce the law after we have made an evidence-based determination of both the nature of the non-compliance and the most appropriate enforcement response.

In relation to enforcing compliance with notices we issue (for example enforcing an RO or WDN issued to an entity to fix defective work by a certain date) our preference is to achieve compliance with the notice through direct engagement. 

As part of direct engagement we may remind the entity of their compliance obligations and seek to determine whether there are any issues reasonably impacting the entity’s ability to comply with the notice. We may also attempt to facilitate communication between the entity and affected consumers (e.g. a homeowner or owners corporation) to achieve a compliance outcome that satisfies both parties. 

Through direct engagement we could determine that it would be reasonable to amend aspects of the notice (e.g. extend the compliance date). Alternatively, we could determine that the entity is in breach of the notice and it would be appropriate to consider an enforcement response.

In some matters, sufficient evidence to determine the appropriate enforcement response could be acquired through the information provided by complainants, other regulators (e.g. local councils) or our inspections. In other circumstances we may need to acquire additional information through an investigation.

An investigation generally involves seeking to establish facts by collecting evidence such as witness statements, key documents (e.g. contracts, certificates, designs) and other information (e.g. photos of defects). Evidence will often be acquired through our statutory notices issued to entities. However, the fact that a matter is being investigated does not mean that we have determined a breach has occurred. We apply this process to reach an evidence-based determination of the facts. This determination then informs what regulatory action, if any, will be taken.

If a non-compliance is established, we will exercise discretion in determining the appropriate enforcement action. We will seek to achieve this through the application of a risk-based framework that gives priority to taking enforcement action when matters demonstrate one or more of the following factors:

• Conduct of significant public interest or concern.
• Conduct resulting in significant consumer detriment.
• Conduct affecting disadvantaged or vulnerable consumer groups.
• Conduct that suggests a pattern of non-compliance by the business (e.g. repeat occurrence) or is indicative of a risk of future misconduct.
• Conduct demonstrating a deliberate disregard for the law.
• Conduct involving a significant new or emerging market issue.
• Whether action is likely to have a worthwhile educative or deterrent effect.
• Conduct that is industry-wide or may become widespread.

We will also be less likely to pursue enforcement action for matters that:

• are isolated events,
• are more appropriately resolved directly between the parties privately or another mechanism (e.g. via an Ombudsman, council, courts), or
• involve issues more effectively dealt with by another agency (e.g. police or other regulators).

Types of enforcement action

There are a variety of forms of enforcement action we can take. This can include penalty infringement notices, disciplinary action against a licence or registration, or in more severe cases initiating prosecution or enforcement action in the court system.

Unless there is an immediate risk of serious harm, when we commence disciplinary proceedings we will inform the affected party of this intent and provide the opportunity for submissions. In most circumstances, parties will be provided with a minimum of 14 days to make submissions, with parties able to requests extensions as necessary. Any submissions made will be considered as part of determining what disciplinary action, if any, that we will pursue. If disciplinary action is taken, we will provide reasons for our decision. 

We acknowledge that complainants and other parties impacted by non-compliance may not always agree with our approach to enforcement. For example, a complainant could be aggrieved when we determine that enforcement action will not be pursued against a party or if they feel that the action taken is insufficient. We will seek to communicate clearly and empathetically with complainants and other affected parties, outlining reasons for our approach and, where possible, we will provide advice on potential alternative remedies.

The following table provides examples of the type of responses that we could apply in different situations. It highlights how we will seek to apply a risk-based approach which applies proportionate responses to different types of non-compliance. 

Avenues for review and appeal

Parties can request the review of regulatory decisions and enforcement action in accordance with the specific procedures outlined in each Act. There are certain time limits which apply to seeking a review of decisions and fees may apply.

In general terms, appeal avenues can include options such as:

• Review of an officer’s decision by a senior manager.
• A formal internal review by an independent team.
• Application for review to the NSW Civil and Administrative Tribunal (NCAT).
• Application for a judicial review in the Supreme Court of NSW.
• Application for a merits review in the Land and Environment Court of NSW.

The relevant appeal rights will be transparently communicated in Building Commission NSW decision notices.

Learn more about our internal review process

Information sharing and the publication of regulatory outcomes

Publication of regulatory actions

Our role includes communicating our compliance and enforcement action to the community and the industry. This role is supported through legislative powers to release information. The type of information released varies, however in general terms it includes information being placed on a licence or disciplinary register, the publication of regulatory notices (e.g. BWROs), and publication of undertakings.

When we take enforcement action against a licence or registration holder we make information available on a public register in accordance with the relevant legislation. This information is available on the Verify NSW website and on our certifier disciplinary register.

We may also release information to the public or media if we consider it to be in the public interest to do so.

Generally, we will not release information which could jeopardise regulatory action or an ongoing investigation. However, we may consider that the public interest is served in releasing information about an investigation in certain circumstances, including when:

• there is potential or likelihood of ongoing consumer detriment,
• the release of information is likely to help support consumer confidence, clarify what actions are being taken against a business or send an appropriate warning to specific entities of our compliance and enforcement role, or
• the release of information could assist us in progressing an investigation (for example, by encouraging other consumers to report non-compliant behaviour).

A decision not to release information about an investigation does not stop us from commenting on the market or certain business practices.

Releasing information to complainants

In most circumstances, we will not provide regular information on the status and outcomes of enforcement action to complainants. While we acknowledge that complainants may wish to have this information, we take this approach to protect the integrity of our enforcement action and ensure affected parties are afforded procedural fairness.

Complainants are able to view publicly available information to identify the nature of regulatory action that has been taken. This includes information published on public registers or published decisions resulting from legal proceedings. Requests for any additional information will be assessed in accordance with our responsibilities under the Government Information (Public Access) Act 2009.

Releasing information to other regulators

We may exchange information with other regulators, state and federal government agencies where there are appropriate legislative powers to do so.

This includes entities such as:

• Other building-related regulators e.g. the Building and Plumbing Commission (Victoria) or the Board of Professional Engineers (Queensland)
• Local councils
• NSW Police
• Fire and Rescue NSW
• SafeWork NSW
• Australian Securities and Investments Commission (ASIC)
• Australian Skills Quality Authority (ASQA)
• Relevant co-regulatory bodies, such as the NSW Architects Registration Board or the Fire Protection Accreditation Scheme

Information sharing is prioritised if it can help support common regulatory or strategic objectives and enable more effective regulatory action by Building Commission NSW or other regulators.