Development Industry’s Got its Mojo Back: David Chandler

“Where we were headed previously, everyone was competing in a race to the bottom.” So says now-retired NSW Building Commissioner David Chandler. But speaking to The Urban Developer this week, Chandler says the eradication of “risky players” in the industry, including the likes of Ralan Group , Toplace and Dyldam, was a sign of change. “These players chased people who would have liked to have done better quality work down a slippery slope,” Chandler says. “Eighty per cent of those players have now taken themselves off that downwards trajectory.” Clearly, given that Chandler’s contract as Building Commissioner was extended three times after his appointment in 2019, including after he threw in the towel in 2022 , the NSW Government thought the same. When he announced his departure in May, the news was met with a show of respect for the man who had taken on a challenging role and enacted real change , as well as pontification over the direction the industry is headed. Chandler’s thoughts have run in a similar vein. A legacy of growing confidence As well as making substantial inroads removing flammable cladding and resolving defects in legacy buildings under Project Intervene, Chandler oversaw the introduction of iCIRT star-ratings which made a “significant difference on many fronts”, he says. “Consumers are increasingly aware of these ratings, and are starting to vote with their feet. “We also opened the door for NSW to have developers offer 10-year warranty insurance, the first state in Australia [to do so], and the number [of developers] knowing that they will offer that warranty once construction is complete is now over 100.” In fact, legislation working through Parliament will make it mandatory by 2028 for developers to offer latent defects insurance, Chandler says, with first movers already signing up . ▲ Outgoing NSW Building Commissioner David Chandler. These measures contributed to consumer and lender confidence, he says. “Lenders are increasingly making the iCIRT rating a condition of their loans, because they’re tired of the consequences of dealing with people in the ‘risky’ bucket. “Banks are becoming far more active in observing construction now, where previously they were hands off. “But when the commission was able to stop them from getting an occupation certificate, banks took serious notice, given that banks tend to lend money for the purposes of getting it back.” That’s not to say that poor building work has been eradicated entirely, but the mechanisms are now in place to catch the problems early—including at the worst project Chandler has ever seen, at 373 Crown Street in Wollongong. A stop-work order was slapped on it in April. “How that building is going to be finished is beyond me, it could have been another Mascot Towers. But the good thing is that we got to it before it was finished,” he says. New areas of focus As NSW Building Commissioner, Chandler made some serious headway in fixing building defects and returning confidence, but there’s still much to do for his still-unnamed successor. Class 2 apartments have been a primary focus during his tenure, but now Class 1, detached homes, are on the agenda with additional powers given to the office in December last year. “Other things on the horizon that need to be given more thought and implementation are supporting ageing buildings,” Chandler says. “There’s a backlog in maintenance on those buildings and the industry will have to turn its mind to it.” ▲ A render of Crownview Wollongong—the apartment block the former Commissioner says is the worst he ’ s seen. The new commissioner will also have to contend with nascent construction methods. “Modern Methods of Construction (MMC) come in variable forms like modular buildings, but it’s never happened at any scale before now and it will be a new frontier,” Chandler says. “How the regulator is going to be on top of regulating buildings made off site? We have not yet built in regulatory capabilities for this.” The same goes for embodied carbon in buildings, he says. And the NSW Building Commissioner’s office has also created a blueprint for other states to follow, if they so choose. “There’s a lot of attention being paid to what we’ve done in NSW. We’ve been prepared to shine a light on things that have been bad in the industry, even on my own social media,” Chandler says. A regular contributor to platforms such as LinkedIn, Chandler has shown great transparency in his approach, something other states have shied away from, he says. “It’s really below the surface in other states, whereas we have been unashamed and unconstrained in showing what bad looks like.” What’s next? So, what’s next for Chandler? “I’m turning my mind to what’s next, and will be available for advisory work to government and industry,” Chandler says. “But the first principle of the work I’d be prepared to do is that it will only be with organisations that have an iCIRT rating.” For the Building Commissioner’s office itself, Chandler has laid the foundations for this future work. “The capabilities of the regulator have been reshaped so its energies can be focused on the most risky players,” he says. This strategy has resonated at all levels, including the hallowed halls of government. “I have enjoyed extraordinary cross bench support,” Chandler says. “All our legislation has had 100 per cent endorsement by both sides of politics and that is something politicians should never forget, that they got this outcome because they worked together. “It’s not a time to use politics to slow that progress down.” Despite all these things, his greatest achievement has been returning public confidence to the sector, he says. “I recall when I started, the industry’s first response was that if it wasn’t for Mascot and Opal you wouldn’t need a commissioner. We’ve left that old perspective behind.” ▲ Toplace ’ s Skyview apartment project at Castle Hill had significant structural issues, the Commissioner found. While, as Chandler admits, the commissioner’s office would never be able to satisfy everyone, he was proud of tangible and intangible outcomes in the role. “Most certainly the public perception that there is a regulator who has their back has substantially improved,” he says. “The industry always wanted to get its mojo back; it was over the brand damage done to the industry prior to my appointment. “Consumers are coming back to the market and contractors want to present themselves as trustworthy. “We’ve satisfied the industry’s quest to restore its brand.” You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. Click here to learn more.

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