Design & Building Practitioners
Act 2020
The Design and Building Practitioners Act 2020 (NSW) significantly extended the liability exposure of developers, builders and designers — making structural separation between the development entity and retained assets more important than ever.
What the Act means
for property developers
The Design and Building Practitioners Act 2020 (NSW) (the DBP Act) introduced a statutory duty of care owed to all owners of land in NSW by persons who carry out construction work. The duty is non-delegable, cannot be contracted out of, and runs for 10 years from the date of completion of the construction work.
Critically, the duty runs to all subsequent owners — not just the original purchaser. A developer completing a residential strata building today owes a duty of care to every person who buys a unit within the next 10 years, including those who purchase secondhand from original buyers.
- Non-delegable duty of care owed by any person who carries out construction work
- Economic loss claims recoverable — not just physical damage
- 10-year limitation period from the date of completion
- Claims can be brought by any subsequent owner within the 10-year period
- Developer entity must be insulated from long-term building liability claims
- Registration requirements apply to design practitioners and principal building designers
- Professional indemnity insurance required for registered practitioners
Structural Implications
Why the DBP Act changes how you must structure developments
Developing property in NSW?
Structure the development entity now to address DBP Act liability exposure. Brief MGS Private through your accountant.