On 9 April 2021, the NSW Government enacted the Design and Building Practitioners Regulation which introduces mandatory minimum standards of insurance cover for practitioners and Continuing Professional Development requirements practitioners. The Act separates practitioners into the categories of design practitioners, principal design practitioners, building practitioners and professional engineers.
A practitioner will be adequately insured with respect to a declaration and work if they are:
- Indemnified by insurance that complies with the Regulation against any liability as a result of providing the declaration or doing the work, or
- Part of some other arrangement approved by the Regulation that provides indemnity against the liability.
A condition of registration is that the practitioner must provide evidence to the Secretary of the Department of Customer Services that they are adequately insured.
Additionally, a practitioner will be liable to pay compensatory damages arising from an act or omission of the practitioner or conduct of the practitioner that would constitute a breach, or failure to comply with a guarantee in the Australian Consumer Law or similar legislation.
The Regulation outlines the professional standards and qualifications that must be met by Practitioners in NSW from 1 July 2021. All Design and Building Practitioner will need to complete at lease three hours of approved and relevant education and training detailed in the Guidelines. Any practitioners who do not meet CPD requirement may be subject to disciplinary action by the Secretary unless any exemption is granted. For more information on the new Regulations, see here.