How does it affect the building industry (and what it means for the sustainable building industry) to have no changes made to the NCC (National Construction Code) for 10 years?

The NCC is overseen by the Australian Building Codes Board (ABCB), and is the nation’s defining operational document of building regulatory provisions, standards and performance levels. Its mission statement is to provide the minimum necessary requirements for safety and health, amenity, accessibility and sustainability in the design, construction, performance and livability of new buildings.

Opposition leader Peter Dutton has unveiled a suite of policies aimed at boosting housing supply in Australia, including a commitment to freeze changes to the National Construction Code for 10 years. This, they claim, would reduce costs by halting further requirements for energy efficiency, safety and amenity in new houses.

The statement references a claim that the lifting of minimum energy efficiency standards from 6 to 7 NatHERS stars which came into place in 2022 would add $60,000 to the cost of a new home – a figure that industry groups have found to be inflated. If successful at the next election (2025) the plan to freeze national building standards could leave Australia with unsafe homes and higher energy bills for decades.

For decades, many have been challenging the considerable lack of meaningful updates to the Code.  As more dodgy builders are going bankrupt and many high-volume builders are leaving new home buyers in the lurch, often for years with faults that are not being remedied, or taking years of litigation in order to be remedied as per the contract, the building industry is in deep crisis and broken, and the entire building regulatory system is not fit for purpose. Consider what has happened, particularly in residential construction with buildings burning, cracking, windows exploding, rooms with intolerable heat stress, rendered unfit for occupation without costly remedial action, class actions against developers, and multi-million-dollar court judgments against consultants and builders.

Many experts have come out the past week saying the NCC already lags other OECD nations and that it would be dangerous to freeze standards during a crucial decade for building climate change resilience. Pausing updates to the building code also presents increased security risks as it would lower the standard at which new properties were constructed. it means many of the already fairly shoddily built homes could be even more cheaply built, and developers would construct homes that aren’t as energy efficient, leading to increased heating and cooling bills, and less resilience in times of heat stress, climate chaos, or extreme weather events.

That explains situations where the power grid may fail and leave households without electricity to cool or heat their homes artificially during a heatwave or cold snap.

The challenges of frequent regulatory changes

Some industry has claimed there are already problems with the current regulatory time-frame. The current three-year cycle of NCC updates leaves industry players scrambling to adapt to new standards. Each cycle can introduce substantial changes that require retraining teams, updating development plans, and managing compliance across multiple projects under different NCC versions. The result is almost always increased costs, project delays, and a focus on compliance over innovation. This is not to say that changes are not needed as they are often safety improvements or necessary due to technology introduction, eg the now pressing consideration of charging EVs and the fire risk/hazard they pose within the built environment.

The NCC is the minimum protection mechanism in place for Australians, many of whom cannot afford to heat or cool inefficient properties. Having no changes made to the National Construction Code (NCC) for a decade will impact both the general building industry and the sustainable building sector in several ways:

1. Stagnation of Standards

Outdated Practices: With no updates, construction practices may remain stagnant, failing to incorporate new technologies or materials that improve efficiency and sustainability.
Safety Concerns: As building materials and methods evolve, outdated codes may compromise safety standards, potentially leading to risks in structural integrity.

2. Sustainability Limitations

Inability to Adapt: The building industry may struggle to adopt newer, more sustainable practices without regulatory support, limiting innovations in energy efficiency, water conservation, and sustainable materials.
Missed Opportunities: The lack of updates can hinder the implementation of best practices for reducing carbon footprints, affecting the industry’s overall sustainability goals.

3. Market Competitiveness

Global Standards: If the NCC remains static while other countries adopt more rigorous sustainability codes, local builders may find themselves at a competitive disadvantage internationally.
Consumer Demand: As public awareness of sustainability grows, consumer demand for green building practices may not be met, leading to potential loss of market share for builders who prioritize sustainability.

4. Regulatory Compliance

Increased Burden: Builders may face challenges meeting existing regulations that could become misaligned with evolving industry practices or environmental standards.
Innovation Stifling: Builders may be less inclined to innovate if they believe the code will not support or recognize new approaches to construction.

5. Financial Implications

Cost of Compliance: If builders continue to use outdated methods and materials, they may face higher long-term costs due to inefficiencies or the need for retrofits in the future.
Investment in Sustainability: Without updated incentives or regulations promoting sustainable practices, investments in green technologies may decline.

Conclusion

The alternative to freezing the code is to allow it to be updated under the current schedule, which is once every five years (the last update was in 2022). A decade without changes to the NCC will stifle progress in the building industry, particularly in the realm of sustainability. To foster innovation and meet contemporary environmental standards, regular updates and revisions are essential to ensure that the code evolves in line with industry advancements and societal expectations.

For other articles on this subject check out The Fifth Estate “Dutton promises silver bullets and magical thinking to solve the housing crisis”.

Very grateful to the peerage of builders such as Matthew Carland from Carland Construction whose Mindful Builder podcast helps set the record straight on the building industry. Check out his podcast on what’s happening with the dismantling of the VBA here or check out Matt’s latest rant here.