Chandler’s power boost as phoenixing under fire

Dodgy developers who use phoenixing schemes to defraud apartment buyers and deprive them of their legal rights will suffer another blow next week when the NSW parliament is expected to pass another raft of laws granting even greater powers to Building Commissioner David Chandler.

New measures will be introduced to prevent and penalise intentional phoenixing activities in the construction industry – developers and builders shutting down their companies to avoid their responsibilities then setting up to do it all over again – by cancelling or refusing licenses.

The NSW Government this week also announced a major increase in the powers and resources of the NSW Building Commission to crack down on poor practices in the building sector by boosting enforcement powers.

Laws set to pass parliament next week will mean that for the first time since the Building Commissioner was appointed, he will have the power to enter any apartment or free-standing home in NSW.

The Commissioner will also have the power to uncover defects before completion of buildings and compel builders to get them fixed.

Building Commission NSW will also receive a $24 million boost, allowing it to scale up to ensure quality buildings are being delivered in NSW.

Described by the government as “supercharging” the Building Commissioner’s powers the move is intended to ensure that, while as the state meets the urgent need for more homes, buyers can be confident about the quality of the home they’re buying, a press release said.

The new laws also make critical changes to improve compliance and enforcement systems across the industry, including introducing new responsibilities across the building products supply chain to ensure that all products used in buildings are safe, compliant, and suitable for their intended use.

The changes come as the NSW Government continues its crackdown on the building sector, with the licenses of four building certifiers cancelled this year:

• On 4 July 2023, Fair Trading found that Mr Glenn Levick engaged in unsatisfactory professional conduct and contravened a law with respect to fraud or dishonesty.
• On 30 August 2023, Fair Trading found that Mr Orlando Da Silva engaged in unsatisfactory professional conduct, contravened the Environmental Planning and Assessment Act and engaged in conduct that fell short of expected standards.
• On 14 September 2023, Fair Trading found that Mr Paul Gearin engaged in unsatisfactory professional conduct, contravened the certification legislation and engaged in conduct that fell short of expected standards.
• On 6 October 2023, Fair Trading found that Mr Joseph Hallal engaged in unsatisfactory professional conduct, contravened the certification legislation and engaged in conduct that fell short of expected standards.

“We’re delivering more homes across the state but we won’t let quantity get in the way of quality, NSW Premier Chris Minns said.

“Home buyers in NSW can be confident that we’ve got a tough cop on the beat in the building industry, ensuring that they can have confidence in the quality of the home they’re buying.

“We’re making the right investments and delivering the right powers to rebuild trust and integrity in this sector to help tackle the housing crisis in our state.”

“New powers for the Building Commissioner are a critical step forward as we rebuild integrity in the NSW construction sector,” added Minister for Building and Minister for Fair Trading and Better Regulation Anoulack Chanthivong.

“There is no room in this state for rip-off merchants taking home buyers for a ride.

“We’ve already started the work required to weed-out untrustworthy players in the market, with these new powers we’ll be doing even more. Grifters in this sector will have nowhere to hide in NSW.”