New regulator calls out ‘bare minimum’ culture in construction industry

NSW’s freshly appointed building commissioner says a culture of doing the bare minimum has taken root in parts of the Australian construction sector, driving building non-compliance and defects.

Data obtained by the Herald under freedom-of-information laws shows more than 3300 defects have been reported in NSW standalone houses this year.

Incoming Building Commissioner James Sherrard says Australia must tackle a “cultural issue” with construction standards. Credit: Janie Barrett

In his first interview since replacing inaugural commissioner David Chandler this month, James Sherrard said an “awful lot” of builders did the right thing but some had a mentality of scraping by, doing the least work possible.

“We have a culture in our building community that it’s OK just to sort of do the minimum standard with some work,” the former Transport for NSW executive said.

“When you’re asking, what’s giving rise to some of these defect areas, I do think there are a number of builders who have developed a culture of ‘will do the minimum standard required’ rather than do the maximum. And I think that’s a cultural issue for the country.”

He said Australia’s compliance problem was also influenced by a “lack of knowledge”, with inexperienced builders doing things incorrectly. He said the Building Commission had a lot to do to drive “generational change”.

“The best time to plant a tree is 20 years ago and the second-best time is today, right? I think that’s the same thing for this regulation,” he said.

“Wouldn’t it have been great to start 25 years ago? Yes, of course. But we are where we are right now. We’ve got a lot to do, but it’s an achievable subject area.”

Sherrard steps into the regulatory hot seat after spending most of his career in the private sector, including as a PwC infrastructure partner, with Savills Project Management in Hong Kong, and on the London Olympics planning team.

Chandler – whose unconventional and, at times, abrasive style won him plaudits from consumers and industry alike – stepped down in August, describing his five years as commissioner as “very confronting, very stressful”.

David Chandler stepped down as building commissioner after five years. Credit: Kate Geraghty

Sherrard has signalled a more conciliatory relationship with the industry, saying the relatively new regulator had established legitimacy with developers.

He said his greatest challenge was restoring community confidence in the quality of new construction, with consumers not buying apartments off the plan. The commission had a “big education piece” to address this, he said.

Despite National Housing Accord pressures to build 378,000 dwellings across NSW over the next five years, Sherrard said there was no tension between quality and quantity. He said focusing on compliance would reduce time spent rectifying defects.

“It’s pointless to construct a building and think you’ve added 500 apartments to the housing stock if nobody can occupy the building for an extended period of time. Or the lived experience of those individuals is suboptimal,” he said.

Building Minister Anoulack Chanthivong said Sherrard had the tools and experience to make a lasting impact.

“I have no doubt he will continue to raise the bar for the industry and restore public confidence,” he said.

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