The building industry will be required to undertake mandatory inspections of high-rise apartments and commercial buildings from 2026, in the most significant industry reform in more than a decade.
The building industry will be required to undertake mandatory inspections of high-rise apartments and commercial buildings from 2026, in the most significant industry reform in more than a decade.
The reform announced this morning by Commerce Minister Sue Ellery will progressively introduce mandatory inspections of new buildings in the years to come, starting with buildings over four storeys and class three to nine commercial buildings in 2026.
Class two lower rise buildings will follow a minimum of 12 months later, with no timeframe set for mandatory inspections on stage one residential builds.
The requirements will not be applied retrospectively, and inspection contractors will be licenced professionals appointed by project owners.
“For where we’re going to start, with new apartment buildings and commercial buildings, there will be several notifiable stages,” Ms Ellery said.
“That will include things like footings, frameworks, weatherproofing, and the building surveyer will have the discretion to add additional notifiable stages based on risk, carried out in accordance with the standard that will be issued by the building commissioner.”
Ms Ellery said under the proposed system building could continue once an inspection notice was issued and would only be delayed if aspects of the build were found to be non-compliant.
The cost of building inspections will be priced by the market and borne by developers.
The inspections are part of a sweeping program of reform designed in response to the national Building Confidence Report published in 2018.
The enforcement powers of the building commissioner, building services board and permit authorities will also be boosted.
The commissioner will have the authority to issue directions on technical matters, enter any construction site, notify permit authorities of non-compliant work and issue greater penalties for offences.
The maximum fines and penalties applied for various offences under the legislation to be doubled for those who break the rules.
A tiered low-rise and open registration system will be introduced, and designers will need to be registered to work in the sector – following the lead of engineers, which will be a registered building profession from next year.
Ms Ellery said the changes were being introduced to ensure consumer confidence in the sector, while also considering the wants and needs of the building industry.
“I’ve met not just with the peak bodies, but with individual small and medium sized businesses as well, and this really reflects us trying to get the balance right,” she said.
“[It’s about] giving consumers rights and confidence that they know they have access to recourse if something goes wrong, and that they can be confident in the quality of the field.
“But it’s also recognising the construction industry itself is an important part of our economy which employs thousands of Western Australians and has been through a lot.
“We can’t just throw everything at them at one time, they won’t be able to deal with it.”
Ms Ellery noted that the quality issues in apartment buildings on the east coast which led to the Building Confidence report were not as prevalent in WA.
The legislation once drafted will be open for review before being tabled in parliament.
Industry responds
Urban Development Institute of Australia WA chief executive Tanya Steinbeck said the body had worked collaboratively with the government on reform and welcomed today’s announcement.
“The proposed legislation is about consistency and providing even further confidence that apartments are built to a high standard,” Ms Steinbeck said.
“With the state government’s vision for a more compact and connected city, apartments form an important part of the housing options offered to buyers and renters across the state.
“It is critical that the property industry is supported and indeed encouraged, to deliver quality product to buyers so that we can meet the needs of the many people seeking the apartment lifestyle.”
Australian Apartment Advocacy, which had actively campaigned for greater consumer protection through mandatory audits, was also welcoming of the announcement.
“These mandatory audits are not independent i.e. the developer will appoint the auditor, but I have been assured by DMIRS that there will be peer reviews conducted by their team and penalties if apartments do not meet Australian Standards and National Construction Code,” chief executive Samantha Reece said.
“With the Perth apartment market in crisis, this move will provide a level of reassurance.”
Ms Reece said the advocacy group recommended holding off purchasing off the plan until the new protection measures were introduced.
The Housing Industry Association WA was also welcoming.
HIA WA executive director Michael McGowan said the tiered approach to implementation of the laws was key to industry confidence.
“The staged approach to mandatory inspections ensures that the more high-risk construction dwellings are addressed in stage one, and that there is opportunity for industry and government to work together based on the learning of each stage to ensure that it remains fit for purpose,” he said.
“Implementing mandatory inspections on class two-to-nine dwellings and class one [residential homes] and 10 [non-habitable buildings] dwelling are two very different propositions requiring two very significantly different levels of resourcing.”
Property Council Australia WA interim executive director Emily Young said the government made the right call in entrusting inspections to licenced operators.
“This morning’s decision by the WA government to adopt industry's recommendation to empower licenced surveyors to conduct mandatory inspections will help mitigate any delays the requirement may otherwise cause," she said.
“The quality of construction in Western Australia is already exceptionally high and is closely monitored by experts in building quality and compliance.
“West Australians should have overwhelming confidence in investing in newly built homes, due to our stringent regulations and robust protections. The introduction of mandatory building inspections will only boost that confidence."
