The Design and Building Practitioners Act 2020 imposes direct obligations on multi-residential developers in NSW across the project lifecycle, from regulated design coordination through Occupation Certificate lodgement. 

Section 37 of the Act creates a 10-year statutory duty of care that extends to developers with substantive control over construction work, alongside designers and builders. The Act regulates Class 2, certain Class 3, and Class 9c buildings, with the 1 July 2026 expansion bringing alteration and renovation work on existing Class 3 and 9c buildings within scope. 

Tau Constructions delivers Class 2 residential construction and combustible cladding replacement projects across NSW under NSW Licence 321977C, with Director Nicholas Economos managing DBP Act compliance from feasibility through handover.

What the DBP Act Requires of Multi-Residential Developers in NSW

The Design and Building Practitioners Act 2020 commenced on 1 July 2021 and applies to multi-residential developers as project principals, not as bystanders to the practitioner registration scheme. Developers carry direct exposure under Section 37 of the Act through the concept of substantive control. A developer who supervises, coordinates, project manages, or otherwise exerts substantive control over construction work falls within the duty of care framework alongside registered design practitioners and the registered Building Practitioner.

The Act sits alongside the Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020, which governs developer notification duties and building work levies on the same projects. Together, the two Acts form the regulatory backbone of Class 2 development in NSW following the Shergold Weir building reform recommendations and the Opal Tower and Mascot Towers defect events.

Which Buildings Does the DBP Act Now Regulate in 2026

The Act regulates three building classes, plus mixed-use buildings containing a regulated class part.

Class 2 buildings, multi-unit residential apartment buildings with two or more sole-occupancy units. The Act applies to new construction, substantial renovations, and remedial building work on existing Class 2 structures.

Class 3 buildings, hotels, motels, boarding houses, backpackers’ accommodation. New buildings have been regulated since 3 July 2023. From 1 July 2026, alteration and renovation work on existing Class 3 buildings falls within scope.

Class 9c buildings, residential care facilities. New buildings regulated from 3 July 2023. Alteration and renovation work on existing Class 9c buildings comes within scope from 1 July 2026.

Mixed-use buildings containing a Class 2, 3, or 9c part, regulated designs apply to the whole building where the work involves a building element or performance solution.

Developer Obligations Under the Act

Developer obligations sit alongside, not behind, practitioner obligations. Three areas carry the most direct exposure.

Substantive control and Section 37 exposure

Section 36 of the Act defines construction work to include supervising, coordinating, project managing, or otherwise having substantive control over construction work, design preparation, or building product supply. Developers who maintain decision authority over scope, programme, and contractor selection fall within the definition. Section 37 then extends a statutory duty of care to that developer, owed to current and every subsequent owner of the land for 10 years from the Occupation Certificate date.

The duty cannot be delegated under Section 39. The duty cannot be contracted out under Section 40. Indemnity clauses in head contracts written before 2021 may not align with the current liability environment and require legal review for Section 37 duty of care under the DBP Act exposure.

Practitioner engagement and verification

Developers carry the responsibility for confirming that engaged practitioners hold current registration. The NSW Government maintains a public Verify Licence register at verify.licence.nsw.gov.au listing registered design practitioners, principal design practitioners, professional engineers, and registered Building Practitioners. Verification before contract execution is the practical control developers exercise against engagement of unregistered or de-registered practitioners.

Documentation oversight

The head contractor lodges regulated designs and design compliance declarations on the NSW Planning Portal before construction starts. Developers retain commercial visibility into this process because lodgement timing affects the Construction Certificate, the programme, and the cost recovery on any variation that triggers re-lodgement.

The Four Documents Every Multi-Residential Project Must Lodge

Four documents form the compliance backbone of every regulated project.

Regulated designs under Section 5 cover building elements and performance solutions across architectural, structural, civil, fire safety, façade, mechanical, electrical, hydraulic, and waterproofing disciplines. Each regulated design must reach the NSW Planning Portal before any associated building work commences.

Design compliance declarations under Section 8(1) accompany every regulated design. Registered design practitioners declare BCA compliance for designs within their class of registration. Only a Registered Design Practitioner can make a design compliance declaration.

Principal compliance declarations under Section 8(2) apply to complex projects where a Principal Design Practitioner coordinates declarations across multiple specialist designers.

Building compliance declarations under Section 8(3) confirm that the work was built in accordance with the declared designs. Only the registered Building Practitioner can lodge this declaration before the Occupation Certificate application. Delegation to an Appropriate Practitioner is not permitted at this final stage.

Variation declarations under Section 9(3) and Section 20 require new regulated designs and new design compliance declarations within one day of the variation commencing on site for any change affecting a building element or performance solution.

How the DBP Act Reshapes Head Contract Structure for NSW Developers

Three commercial consequences flow from the Act into the head contract terms.

Risk allocation under Section 37. The non-delegable, non-contractable duty of care changes how indemnity, warranty, and liability cap clauses operate. Where the head contract previously transferred all defect risk to the builder, Section 37 maintains direct exposure on the developer for any work carried out under substantive control.

Procurement model under the Act. Design and Construct delivery under the DBP Act compresses practitioner coordination under one head contract, with the Building Practitioner managing the entire declaration chain. Early Contractor Involvement for DBP-regulated projects front-loads compliance decisions at feasibility, reducing variation declarations during construction. Traditional tendering carries the most fragmentation risk because the design declarations are lodged before the builder is engaged.

Documentation as a liability asset. The lodged design compliance declarations, variation declarations, and building compliance declaration form the Section 37 evidence base for 10 years from the Occupation Certificate date. Class 2 residential construction with DBP Act compliance requires documentation discipline that survives the full 10-year exposure window.

Practitioner Registration Due Diligence

Developers verify practitioner registration before contract execution using the NSW Government Verify Licence register. The verification confirms current registration status, registration class, and any conditions or suspensions. Verification of professional indemnity insurance currency sits alongside the registration check, with mandatory PI insurance requirements extending to design work on Class 2 buildings from July 2026.

Penalties for Non-Compliance and Section 37 Exposure

The Act carries three layers of consequence.

Disciplinary penalties under Section 66, the Secretary may impose monetary penalties up to $220,000 on body corporates and $110,000 on individuals for grounds including conduct falling short of competent practice and contravention of the Act.

Stop Work Orders under Section 89, the Secretary may order work to stop on grounds of contravention, causing significant harm or property damage. Penalties for non-compliance reach 3,000 penalty units plus 300 penalty units per day for continuing offences on body corporates.

Section 37 civil exposure, owners and owners’ corporations hold a direct cause of action for 10 years from the Occupation Certificate date. The duty operates retrospectively, with work completed before 1 July 2021 sitting within the Section 37 exposure zone.

How ECI and Director-Led Delivery Reduce DBP Act Compliance Risk

Two delivery-model decisions reduce DBP Act compliance risk on Class 2 projects.

Early Contractor Involvement for DBP-regulated projects brings the registered Building Practitioner into design coordination before declarations are locked. Constructability input at the design stage prevents variation declarations during construction, where the one-day lodgement window leaves little recovery room.

Director-led delivery on DBP-regulated projects places senior accountability inside the variation declaration discipline. The same senior team that shapes design coordination carries the project through handover, supporting the documentation continuity required across the 10-year Section 37 exposure period.

Tau Constructions delivers Class 2 residential construction under NSW Licence 321977C with ISO-aligned systems governing regulated design management, declaration discipline, and Building Compliance Declaration lodgement.

DBP Act Compliance Is a Construction Discipline

DBP Act compliance for multi-residential developers in NSW operates as an integrated construction discipline across design coordination, declaration management, head contract structure, and 10-year documentation retention. 

Tau Constructions delivers Class 2 residential construction, building remediation, and combustible cladding replacement projects across NSW where DBP Act compliance is treated as built into the delivery model, not bolted on after contract execution.

Bring us the problem, and we’ll bring the solution.

Frequently Asked Questions

Does the DBP Act apply to all developers in NSW?

The Act applies to developers undertaking regulated building work on Class 2, certain Class 3, or Class 9c buildings, including mixed-use buildings with a regulated class part.

What is substantive control under the DBP Act?

Substantive control under Section 36 covers supervising, coordinating, project managing, or otherwise exercising decision authority over construction work, design preparation, or building product supply. Developers exercising substantive control fall within the Section 37 duty of care.

Can a developer transfer DBP Act liability to the builder through the head contract?

Section 39 of the Act prevents delegation of the duty of care. Section 40 prevents contracting out. Head contract indemnity provisions can allocate commercial risk between parties but cannot extinguish the developer’s statutory duty under Section 37.

When does the 1 July 2026 expansion take effect?

From 1 July 2026, alteration and renovation work on existing Class 3 and Class 9c buildings comes within the Act. Developers planning hotel refurbishments, motel upgrades, or residential care renovations should verify project scope against the expanded obligations before contract execution.