What the construction industry needs to know in 2025
The Design and Building Practitioners Act 2020 (NSW) continues to reshape the construction industry, broadening its scope from high-rise residential to a wider range of building classes and project types. While its original intent was to restore consumer confidence in multi-storey apartment construction, the DBP Act’s reach now includes aged care, hotels, student housing, and more.
This article outlines the Act’s key extensions, emerging industry obligations, and most recently, the NSW Government’s deferral of compliance for existing Class 3 and 9c buildings, a critical update delivered at the Association of Australian Certifiers (AAC) Conference on 30 May 2025.
What is the DBP Act and why does it matter?
The DBP Act was introduced by the NSW Government to address systemic quality and safety concerns in the building sector. Its key features include:
- Mandatory registration of design and building practitioners
- 100% detailed designs that are accompanied by statutory design compliance declarations lodged via the NSW Planning Portal
- A statutory duty of care that applies to all involved in building work
It aimed to improve construction standards, hold practitioners accountable, and prevent building defects through design-phase compliance and oversight. To assist practitioners a handbook and Regulated Design Guidance Material was developed (if you’re interested, read more here): Design Practitioners Handbook
Before construction can begin, specific design documentation must be declared and uploaded via the NSW Planning Portal. These include:
- Structural elements
- Fire safety systems (as defined by the NCC)
- Waterproofing
- Façade systems
- Mechanical, plumbing and mechanical systems
- Vertical transportation
- Performance solutions
- Ground anchors & shoring
This reinforces the importance of accurate documentation, early design coordination, and NCC alignment.
Key expansions since 2023
- Coverage of Class 3 and 9c Buildings
As of 1 July 2023, the DBP Act applied to new construction of:
- Class 3 buildings: including boarding houses, student accommodation, and hotels (with some exemptions)
- Class 9c buildings: such as aged care and residential care facilities
This marked a significant shift, drawing higher-risk occupancy buildings into the DBP compliance net.
- Registered Practitioners
More practitioners are now required to register under the Act, including:
- Mechanical, civil, and fire safety engineers
- Façade and vertical transport engineers
Each must declare that their design complies with the NCC and maintain professional insurance and qualifications.
Latest update: 12-month deferral of remedial work requirements
At the AAC Conference on 30 May 2025, Building Commission NSW advised that “the expansion of the DBP Act to cover the repair, alteration, and renovation of existing Class 3 and Class 9c buildings is expected to be deferred by 12 months, from 1 July 2025 to 1 July 2026.”
What this means:
- New Class 3 and 9c buildings must still comply with all DBP Act provisions (registration, declarations, regulated designs) from 1 July 2023, though noting the Class 3 exemptions below.
- Alterations, remedial works, refurbishments, and renovations to existing Class 3 and 9c buildings now have an extended transition period until 1 July 2026.
This is a significant development for the hospitality, aged care, and student housing sectors, where many projects involve legacy building upgrades or adaptive reuse rather than new construction.
Exemptions still in place for certain hotel developments
The NSW Government also maintains low-risk exemptions from the DBP framework for certain Class 3 buildings, particularly:
- Hotels and motels not part of a strata scheme
- Projects that do not include serviced apartments
These exemptions help reduce compliance burdens for small-scale or short-stay operators but must be reviewed on a case-by-case basis.
Statutory duty of care: liability still applies
Even where a project may fall outside the DBP’s declaration and registration regime, the statutory duty of care introduced under the Act still applies broadly. This means:
- Any party involved in construction work, including consultants and subcontractors, may be held legally liable for defects
- Liability extends to future property owners
- Legal action can be taken without a direct contract
This duty is active regardless of whether the DBP Act’s design declaration or registration requirements apply.
Strategic steps for Practitioners and Developers
✅ Use the deferral period to prepare
For consultants and developers involved in Class 3 or 9c refurbishments, the 12-month deferral offers time to:
- Review design documentation standards
- Upskill teams and subcontractors
- Align internal workflows with DBP compliance lodgement practices
✅ Engage early with Certifiers and/or NCC& Access Consultants
Bringing in Certifiers, NCC consultants, and Access experts early can reduce variation risk and avoid declaration rework.
✅ Audit registration and insurances
Make sure your full consultant team is appropriately registered and insured under the DBP framework, including newer categories like fire safety engineers and façade designers.
✅ Stay updated on NSW Building Commission announcements
The DBP compliance environment continues to evolve, with periodic changes to exemptions, transitional arrangements, and enforcement practices.
Build better, document smarter
The DBP Act represents a fundamental cultural shift in the construction sector, prioritising early-stage compliance, design accountability, and lifecycle safety. With new Class 3 and 9c buildings already captured, and remedial works now due to comply from 1 July 2026, all practitioners must adapt their workflows to remain competitive and compliant.
At MBC Group, we guide our clients across hospitality, aged care and residential projects through this evolving compliance landscape. From regulated design reviews to statutory declarations and Certifier coordination, our goal is to help you build better and manage risk smarter.