Tradie shortages, material costs and new regulations have seen thousands of construction projects blow out in recent months – with builders footing the bill.
Last month, builders in some states across the country were hit hard by energy-efficiency chances to the National Construction Code (NCC).
According to the revised regulations, any new home submitted for planning approvals after May 1st is now required to meet a seven-star energy efficiency rating, typically requiring better orientation for sunlight, more double-glazing, insulation and often solar panels or more efficient appliances.
While beneficial in the long run, builders caught with their pants down saw the changes disrupt the planning process of some homes months in the making and, in some cases, derail prior contracts.
In Victoria, the price of building a new home jumped by as much as $25,000 almost overnight, far outstripping the Housing Industry Association’s $10,000 price impact estimates.
But with more regulatory changes on the way and no end in sight for tradie shortages and material costs that continually plague projects, Managing Principle for Design Confidence Luke Sheehy says it’s up to tradies to understand the new codes if they want to keep builds on time and under budget.
“Knowing the Codes and or ensuring they are at the forefront of mind when designing or constructing a building is a must as this not only ensures compliance is achieved but prevents work from having to be redone in the event it is incorrect,” Mr Sheehy told Build-it.
“The cost to redo work either during the design phase or construction phase of a project always has a negative impact on the program and budget.”
Knowing your NCC changes could save you $$$
According to Mr Sheehy, a guide to your worksite construction codes should be an essential part of the tradie tool kit.
“Knowing the Codes and ensuring they are at the forefront of mind when designing or constructing a building is a must as this not only ensures compliance is achieved but prevents work from having to be redone in the event it is incorrect,” he told Build-it.
“The cost to redo work either during the design phase or construction phase of a project always has a negative impact on the program and budget.”
“Having building codes freely available for viewing would allow for greater education and training to the wider construction industry.”
“By better educating the industry on the application and requirements of building codes this would inherently provide better design outcomes, this would ensure less re-work occurs which directly translate into less delays and improved budgets.”
But not all codes are the same. The NCC changes have been implemented differently state by state, with each requiring builders to adopt different measures by different dates.
“The changes in within each state are typically climate driven, as each climate zone brings with it its own requirements, however each state may have nuisance changes which could relate to fire safety requirements and or mechanical ventilation,” added Sheehy.
“It’s important to be aware of any State variations when working on projects which are interstate or in a challenging climate zone.”
What’s changing in your state?
Australian Capital Territory (ACT)
The ACT has been proactive, adopting both liveable housing and 7-Star provisions from 1 October 2023. Homeowners and builders in the ACT must already enhance their insulation levels, especially in walls, ceilings, and floors, to help meet these higher standards.
New South Wales (NSW)
NSW has already aligned the BASIX thermal 7-Star rating and adjusted its energy targets to match whole-of-home energy usage.
These changes will necessitate the use of higher-performing insulation materials that help to address both thermal bridging in steel framing and seasonal temperature variations, particularly in climates ranging from warm temperate (Zone 5) to cool temperate (Zone 7).
Northern Territory (NT)
While the NT implemented the liveable housing provisions on October 1st 2023, it will continue to maintain the 5-Star energy efficiency requirements for now. This will be a phased approach to energy efficiency standards in the territory.
Queensland (QLD)
From May 1st, Queensland has made it mandatory for all new home construction to implement the 7-Star energy efficiency standard.
This upgrade will enhance the energy efficiency of the building shell, focusing on optimal home orientation and high-performing insulation. For the first time, considerations will be made for the energy consumption of household appliances.
South Australia (SA)
With the transition to the 7-Star energy efficiency requirement extended to 1 October 2024, South Australia is currently exploring exemptions for certain types of housing.
This consideration implies that while the new standards will eventually apply broadly, specific housing types might receive adjustments to their compliance requirements.
When planning construction or renovations, builders must ensure homes are equipped to handle these conditions efficiently, balancing comfort with energy savings as the new standards are phased in.
Tasmania (TAS)
Tasmania will adopt the liveable housing provisions by 1 October 2024 but will not move to the 7-star rating. The focus in this state remains on combating the cool temperate climate (Zone 7), with a high demand for insulation that effectively combats cold conditions.
Victoria (VIC)
Similar to Queensland, Victoria has adopted the changes in full from May 1st, 2024, with the 7-Star standard aimed at enhancing the energy efficiency of the building. For the first time, the changes also include considerations for the ‘whole-of-house’ energy consumption of household appliances, which would also assist in reducing energy consumption to lower emissions.
Western Australia (WA)
Set to adopt the 7-Star requirement by May 1st 2025, Western Australia’s vast climatic differences from hot dry summers in the north (Zone 3) to cooler southern regions (Zone 6) mean that builders will have to consult their local regulatory organisation to decide on the best approach for new homes.
