22/06/2021
Design and Building Practitioners Regulation 2021 in NSW: Summary of Insurance and CPD requirements
Design and Building Practitioners Regulation 2021 (NSW) (Regulation), which comes into force on 1 July 2021. If you perform design or construction work on class 2 buildings (i.e. residential apartments) and intend on making a compliance declaration, you fall within the scope of the Act and you must get registered.
The Act introduces compulsory minimum standards of insurance cover for practitioners and CPD requirements for all classes of practitioner. The key points are:
• there is a two-year transitional period for insurance requirements – while adequate insurance is recommended, from 1 July 2021 to 30 June 2023 – until 1 July 2023 there are no additional, mandatory insurance requirements for practitioners; and
• once practitioners become registered, they are subject to the CPD requirements detailed in Schedule 3 of Regulation.
The Act aims to provide greater regulation of practitioners involved in building and construction, following a spate of highly publicised residential apartments defects.
Insurance for building practitioners
In contrast to design, principal design practitioners and professional engineers, a building practitioner does not have to hold a professional indemnity policy, rather they must be indemnified under an insurance policy which in the reasonable opinion of the building practitioner provides for an adequate level of indemnity for the liability incurred by the practitioner in the course of doing work. In determining whether a policy provides an adequate level of indemnity, the practitioner must take into account:
(a) the nature and risks associated with the work,
(b) the volume of the work,
€ the length of time that the practitioner has been registered,
(d) a reasonable estimate of claims that could be brought on the basis of paragraphs (a)–(c) above,
€ the financial capacity of the practitioner,
(f) any limits, exceptions, exclusions, terms or conditions of the policy.
CPD requirements
Design and Building Practitioners will need to complete at least three hours of approved and relevant education and training detailed in the Guidelines. These CPD hours must be earned by undertaking courses available from the Construct NSW Digital Learning Platform, and/or the Australian Building Codes Board National Construction Code CPD System.
• keep written records specifying the how the practitioner satisfied the CPD requirements each year,
• maintain the records for at least 5 years.