The building process — whether for commercial or residential projects — is inherently complex, involving many stakeholders, regulatory requirements and potential delays. From obtaining the necessary permits to navigating compliance upgrades and coordinating with various authorities, each step in the process presents unique challenges. To effectively navigate the building process, it’s important to understand some of the key challenges faced throughout, such as triggers for permits, variables that can cause delays and determining strategies for streamlining the process.
Triggers for building permits
A building permit is often required for most types of work on commercial properties. Surprisingly, even minor tasks, such as replacing carpets in commercial spaces, can trigger the need for a permit. The primary reason for this is safety compliance, particularly fire safety. For instance, when replacing carpets in a commercial building, the fire hazard rating must be checked, and a building permit may be needed to ensure the new installation adheres to fire safety regulations.
For larger-scale work, such as the repair or renewal of essential safety measures like fire exits or alarms, a building permit is mandatory. The regulations for residential properties, however, are less stringent. In most cases, non-structural renovations, like kitchen or bathroom updates, do not require a permit unless they involve structural changes or safety measures that could affect the building’s overall integrity.
Triggers for a demolition permit
Demolition work brings another set of challenges, particularly when obtaining permits. A demolition permit is required when more than 50% of a building’s volume is being demolished or when the façade is affected. Some registered building surveyors take an even more conservative approach, interpreting the regulations to require a demolition permit for any work involving the removal of structural members that support any part of the building.
If a building falls under a planning overlay — such as a heritage overlay — obtaining a demolition permit becomes even more complicated. Heritage overlays protect buildings of historical or architectural significance, and demolition can only proceed after a thorough review by the appropriate authorities, adding another layer of complexity to the process.
The decision to issue a building permit often rests with a registered building surveyor, who evaluates the project based on the relevant regulations. For example, even reroofing a building can require a permit to ensure compliance with modern standards, including regulations governing overflow drainage and energy efficiency.
Variables influencing building permits and site commencement
Several external factors can delay the approval of a building permit and the start of construction. Authorities responsible for managing flood overlays, power, gas, water and stormwater systems may need to review the project before construction can proceed. These approvals can take anywhere from two to 12 months. Town planning applications, depending on the complexity of the project, may take an additional three to 12 months.
Other variables that can cause delays include:
- Permit checklists: A registered building surveyor may issue a checklist of required items, which can range from 15 to 80 items, depending on the project.
- Consultant involvement: Involving experts such as heritage consultants, fire safety engineers and civil drainage specialists is essential for ensuring compliance with various regulations but can also lead to delays.
- Compliance upgrades: Surveyors may mandate upgrades for fire safety, accessibility or energy efficiency, adding both time and cost to the project.
- Road permits and council overlays: These can add anywhere from one to three months to the approval process, particularly in areas with significant planning controls or heritage considerations.
RFI checklist example for a building permit
A request for information (RFI) checklist is a common part of the building permit process. This checklist typically includes several key areas that must be addressed before the project can move forward:
- Executive summary: An overview of the regulatory and National Construction Code (NCC) requirements.
- Planning permit: If the project is located in a zone that requires a planning permit, this can delay the process by three to 12 months.
- Building compliance: If more than 50% of the building is altered, the entire structure must be brought into compliance with current regulations, often involving consultants and additional delays of one to three months.
- Fire safety: If the project does not meet fire safety requirements, Fire Rescue Victoria (FRV) may need to be consulted, which can add another two to three months.
Streamlining the building permit process
While the building process is fraught with potential delays, there are strategies to streamline the permit phase and minimise disruptions. Some of these strategies include:
- Set clear expectations: All stakeholders should be informed of the expected timelines and potential delays at the outset of the project.
- Engage consultants early: Involving surveyors, engineers and heritage experts early in the design phase can prevent bottlenecks later in the process.
- Coordinate with authorities: Proactively liaising with authorities responsible for flood, stormwater, power and gas systems during the design phase can reduce delays.
- Mitigate council delays: Early engagement with town planning consultants can help expedite the approval of necessary permits.
- Involve surveyors early: Engaging a registered building surveyor early in the process will help you identify compliance requirements before the project begins.
Moving forward
The building process presents numerous challenges, particularly when obtaining the necessary permits and complying with various regulatory requirements. However, by setting clear expectations, engaging the right consultants early and taking proactive steps to address compliance, the process can be streamlined. As the industry continues to evolve, adopting industry-wide practices such as extending indemnity periods and involving consultants early on will be critical to managing the increasing complexity of modern construction projects.
How Sedgwick can help
Navigating the evolving complexities of the building permit process requires expertise and foresight, and our qualified and expert property team is well-equipped to guide clients through these challenges. With deep industry knowledge and a comprehensive understanding of regulatory requirements, our professionals are skilled at identifying potential roadblocks early in the process and offering tailored solutions to overcome them. Whether securing building permits, managing compliance upgrades or coordinating with consultants and authorities, our team ensures that projects stay on track and within legal parameters. Our proactive approach helps clients avoid costly delays, ensuring smoother project timelines and successful outcomes in an increasingly complex regulatory landscape.
For more information, please reach out to Sedgwick’s major and complex loss property team:
[email protected] Executive Adjuster, Major and Complex Loss Property Leader, Victoria/Tasmania
[email protected] Senior Major and Complex Loss Adjuster
[email protected] Head of Major and Complex Loss, Property
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