NSW’s Building (Approvals and Practitioners) Bill 2026: Implications for MMC risk and liability

NSW's Building (Approvals and Practitioners) Bill 2026 introduces significant changes to how building practitioners are regulated and held accountable, with particular implications for modern methods of construction (MMC). The legislation reshapes approval pathways and establishes clearer liability frameworks for designers, certifiers, and builders involved in MMC projects. Key provisions affect professional indemnity requirements, practitioner registration standards, and dispute resolution mechanisms that govern remedial and new construction work.

For remedial building professionals and strata managers, these changes create both compliance obligations and risk exposure. MMC systems—increasingly adopted to address housing shortages—introduce novel construction sequences and material combinations that current liability frameworks weren't designed to accommodate. The Bill attempts to clarify responsibility allocation across the supply chain, which is essential for managing defect claims and insurance coverage. Understanding the new practitioner obligations and approval requirements will be critical for consultants advising on MMC rectification projects and for strata bodies managing buildings constructed using these methods.