Building Commission NSW Orders on Class 2 Sites 2026: Stop Work, Prohibition and Building Work Rectification Orders and How Developers Respond

Answer first: Building Commission NSW can issue three main orders on a Class 2 apartment project under the RAB Act: a stop work order, a prohibition order that blocks the occupation certificate, and a building work rectification order that makes the developer fix a serious defect. Each is published, criminally enforceable, and usually needs RDP-declared rectification designs before work restarts.

By: giantA Pty Ltd · Updated 11 November 2026

Building Commission NSW published several new orders on residential apartment sites during 2026, including stop work orders at Botany (February), Rose Bay (March) and Mount Hutton (June), and a building work rectification order at Kembla Grange (September) with an eight-month compliance period. For developers, builders and strata committees, an order changes the whole program. This guide explains what each order does, who it is issued to, how the draft-order process works, and where the design team fits when a serious defect has to be fixed.

Which Building Commission NSW orders can apply to a Class 2 building?

Building Commission NSW says it can issue four types of order: stop work orders, prohibition orders, building work rectification orders and rectification orders. Depending on the order type, they are made under the Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020 (RAB Act), the Design and Building Practitioners Act 2020 (DBP Act) or the Home Building Act 1989 (HB Act).

The RAB Act orders apply to Class 2 buildings and buildings that contain part of a Class 2 building, as well as Class 3 and Class 9c buildings. That means a mixed-use building with ground-floor retail and apartments above is inside the regime. Our guide to mixed-use Class 2 buildings under the DBP Act explains why one Class 2 part pulls the whole building in.

Who counts as the "developer" for a RAB Act order?

The definition is deliberately wide. Building Commission NSW summarises section 4 of the RAB Act as covering any of the following:

• the person who contracted or arranged for, facilitated or otherwise caused (directly or indirectly) the building work to be carried out;
• the owner of the land when the work is carried out, if the work is the erection or construction of a building or part of one;
• the principal contractor for the building work; and
• the developer of the strata scheme.

In practice, a landowner who sold a project into a joint venture, or a builder acting as principal contractor, can be the recipient of an order. Building Commission NSW also says that where the recipient is both a developer and a building contractor, its disciplinary unit will consider action against the builder's licence, which can include a fine and in some cases disqualification of the company and nominated supervisor.

What is a "serious defect"?

Building work rectification orders and many prohibition orders turn on whether there is a serious defect. Building Commission NSW explains that a serious defect relates to one of five building elements:

• fire safety systems;
• waterproofing;
• structure (load-bearing elements, foundations, footings, floors, walls and roof);
• the building enclosure, such as external cladding and façade; and
• key services such as plumbing, electrical, lifts and mechanical.

A defect is serious if the building element does not comply with the performance requirements of the Building Code of Australia, the relevant Australian Standards or the approved plans; or if defective design, workmanship or materials prevent proper use of the building or could cause destruction or collapse; or if a building product is used in contravention of the Building Products (Safety) Act 2017.

These are the same elements that need regulated designs and design compliance declarations under the DBP Act. Our guide to which Class 2 building elements need RDP regulated designs sets out that overlap.

When does Building Commission NSW step in?

There are three common routes.

1. Occupation certificate audits

After a developer lodges an expected completion notice, the project may be selected for an OC audit using risk rating tools. The developer is notified in writing, must upload a list of project documents to the NSW Planning Portal, and inspectors then attend site focusing on structure, waterproofing, fire safety systems, building enclosures and essential services. If serious defects are found, an order may follow. Our expected completion notice guide covers ECN timing and the audit gate in detail.

2. Anytime and post-OC inspections

Building Commission NSW says it can visit and enter any Class 2 building site at any stage of the build or after completion, and occupied Class 2 sites up to 10 years old can be selected for audit following a referral or complaint. Its RAB Act compliance powers can be used for up to 10 years after the building is completed.

3. Owners corporation complaints

For an occupied Class 2 building, the complaint must come from an authorised representative of the owners corporation (such as the strata manager or strata committee chair) and must relate to common property. The owners corporation must first have raised the defect with the builder or developer, and the regulator's options depend on the building's age, the strata building bond, statutory warranties and whether the builder or developer is still trading. For the warranty side, see Class 2 defect liability periods and the 6-year warranty.

How does the draft order process work?

Building Commission NSW states that a draft order, or Notice of Intent to issue an Order, is issued to the developer and relevant third parties, giving them time to review and respond. After it considers submissions, or the time to make them expires, it may issue a final order. For building work rectification orders, the notice of the proposed order goes to the developer and also to parties such as the local council, the principal certifier, the landowner (if not the developer), the Registrar-General and, for a strata building, the owners corporation.

The response window is the most valuable time a developer has. A well-evidenced technical response can narrow the scope of an order, adjust compliance periods or show that an item is not a serious defect. It cannot argue away a defect that is plainly there. Our view as designers is that the response should be engineering and design evidence, not a letter disputing the regulator's motives.

The regulator may skip the notice step where there is a serious risk to public safety or an emergency, so do not assume there will always be a draft.

What happens after a building work rectification order is issued?

Building Commission NSW publishes a general guide to the steps after a building work rectification order. Adapted into a practical checklist:

1. Read the order as a whole. Each order states that it must be considered as a whole. List every defect item, condition and compliance period.
2. Engage the right practitioners at your own cost. The developer engages experts, such as engineers and designers, to investigate each defect.
3. Prepare declared rectification designs. The designs must be completed by a registered design practitioner and lodged on the NSW Planning Portal. See our guide to Class 2 remedial building work, CIRDs and declarations.
4. Prepare a remediation plan. Building Commission NSW considers the plan with the developer to check it responds to the issues in the order.
5. Share the plan with the owners corporation. Where remediation is done under an order, the owners corporation must give the developer access to carry out the work.
6. Carry out the work in the agreed timeframe, using a building practitioner and keeping as-built records for any varied regulated designs.
7. Close out. Once the regulator is satisfied the serious defects are rectified, it revokes the order and removes it from the public register.

If the work is not done, Building Commission NSW says it may ask the Land and Environment Court to order compliance, issue a stop work order where work is unsafe, or prosecute. Any penalty a court imposes is collected by the government and is not paid to the owners corporation to fund the repairs.

What are the consequences of ignoring an order?

For off-the-plan projects, the prohibition order is the commercial pressure point because purchasers usually settle once the occupation certificate issues. The register is public, so lenders, purchasers and future strata committees can see the order.

What should the design team do to avoid an order?

Most serious defects start as a design-documentation gap or an undocumented variation. From the design side, the controls that matter most are:

• Complete regulated designs before work starts. Our guide to Class 2 construction certificates and RDP declarations explains the sequence.
• Control variations. Changes to waterproofing, fire separation, façade or structure mid-build need varied regulated designs, not marked-up shop drawings. See Class 2 design variations mid-build.
• Coordinate consultants. Fire, façade, hydraulic and structural designs need clear ownership. Read our guides to RDP, building practitioner and PDP roles, professional engineers on Class 2 projects and performance solutions and fire engineering reports.
• Keep the Planning Portal record complete. OC auditors review the documents uploaded to the Portal before they reach site. Treat the Portal record as the first thing the regulator will read.
• Plan the as-built package early. See Class 2 occupation certificates and as-built regulated designs.

Does the Building (Approvals and Practitioners) Act 2026 change this?

Not yet. The Building (Approvals and Practitioners) Act 2026 received assent on 14 August 2026, but apart from two Schedule 3 items it has not commenced. Building Commission NSW says the reforms will take effect once associated regulations are developed, with consultation during 2026 and 2027. It also says the Act amends the RAB Act so regulations can set up a structured dispute resolution process for occupied apartment buildings. Until those parts commence, the current RAB Act, DBP Act and HB Act order powers described above continue to apply. See our overview of the Building (Approvals and Practitioners) reforms.

Frequently asked questions

Can Building Commission NSW issue an order after the occupation certificate?

Yes. A building work rectification order can be issued whether the building is occupied or not, and Building Commission NSW says its RAB Act compliance powers can be used for up to 10 years after completion. A prohibition order, by contrast, can only be issued while no occupation certificate is in place.

Can an order be issued to a builder rather than the developer?

Yes. The RAB Act definition of developer includes the principal contractor, and HB Act stop work and rectification orders can be issued to the contractor licence holder. Building Commission NSW says it can issue orders to both developers and builders.

Does an appeal to the Land and Environment Court pause the order?

No. A developer can appeal within 30 days, but lodging an appeal does not stop the order taking effect unless the Court orders otherwise.

Who prepares the designs to fix a serious defect?

Building Commission NSW says the developer engages experts at its own expense to investigate and prepare declared designs, which must be completed by a registered design practitioner and lodged on the NSW Planning Portal, together with a remediation plan.

How do I check whether a building has an order?

Search the Building Commission NSW register of building work orders. It lists in-force prohibition orders, building work rectification orders and stop work orders, and an order is removed once it is revoked.

Does the owners corporation get the penalty money?

No. If a prosecution succeeds, the penalty is collected by the government and is not paid to the owners corporation to fix the defects. The owners corporation's remedies sit with the order itself, the strata building bond, statutory warranties and civil claims.

How giantA can help

giantA is a NSW registered design practitioner practice for Class 2 work. We prepare and declare regulated designs, coordinate consultants, and help developers and builders respond to draft orders with clear design evidence and Planning Portal-ready rectification documentation. Explore our Class 2 building design services, read our Class 2 DBP Act compliance guide, or talk to us about your project.

This article is general information, not legal advice. Orders turn on their own facts; get legal and technical advice on any specific order.

Preferred sources (verify current versions)

• Building Commission NSW – About orders from Building Commission NSW
• Building Commission NSW – Register of building work orders
• NSW Government – Building Commission NSW intervention on regulated building issues
• Building Commission NSW – How we audit developers: occupation certificate audits
• Building Commission NSW – Building Productivity Reforms
• NSW Legislation – Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020