The Developer Says They’ll Fix the Defects. Is That Enough?

1. A developer promise to rectify defects

A developer may tell the owners corporation, consultant or strata manager that identified defects will be fixed. That commitment can help move a matter forward and may be important evidence. Its legal effect depends on the actual words, documents and surrounding circumstances, so scheme-specific legal advice may be needed.

The practical limitation is that a promise is not automatically an undertaking accepted under section 28 of the Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020, a Building Work Rectification Order or a Prohibition Order. The owners corporation should not assume the scope, deadline, verification method or consequence of non-performance. Those matters should be recorded expressly.

2. An undertaking accepted by Building Commission NSW

A developer undertaking under section 28 of the RAB Act is offered voluntarily by the developer to the Secretary. Building Commission NSW describes these undertakings as commitments to fix identified serious defects within the period specified in the accepted document.

Once the Secretary accepts the undertaking, it becomes a legally binding regulatory commitment and compliance is no longer optional. Contravening an accepted undertaking is an offence. The accepted terms—not a general assurance—should be checked for the defect list, required work, milestones, reporting, access, expert verification, completion evidence and release process.

3. A Building Work Rectification Order

A Building Work Rectification Order is a formal order under section 33 of the RAB Act. It can require a developer to eliminate, minimise or remediate a serious defect through specified work or other action. It may be issued where building work was or is being carried out in a way that could result in a serious defect, or where the building has a serious defect.

The order identifies the formal obligation and the compliance period. Building Commission NSW monitors compliance with residential-apartment rectification orders and may consider further enforcement if the order is not complied with. Failure to comply is an offence. The particular order must still be read as a whole because its scope, conditions and deadline are specific to that building.

4. A Prohibition Order

A Prohibition Order under section 9 of the RAB Act is not simply another description for a rectification plan. In relevant pre-occupation circumstances, it can prevent the issue of an occupation certificate, the registration of a strata plan or both until the order is revoked.

Serious defects are one ground on which a Prohibition Order may be issued, but the Act also provides other grounds. The order controls whether occupation or registration can proceed; it does not remove the need to identify, rectify and verify the underlying defects through the appropriate process.

Current examples: Seven Hills and Kembla Grange

On 4 September 2026, Building Commission NSW published a Building Work Rectification Order concerning the residential apartment building at 101 Best Road, Seven Hills. The published summary requires the developer to remediate the serious defects listed in the order within 90 days.

On 3 September 2026, Building Commission NSW published a Building Work Rectification Order concerning the development at 141 Darkes Road, Kembla Grange. Its published summary requires remediation of the listed serious defects within eight months. A separate Prohibition Order for the same building prevents an occupation certificate from being issued until the order is revoked and states that an occupation certificate or strata-plan registration issued in contravention is invalid.

These examples show how different regulatory tools can operate in practice. They are included for current professional learning only and are not commentary on the developers or any matter beyond the published orders.

Ask six governance questions before relying on any assurance.

The name of the document matters, but the owners corporation also needs a disciplined control record. For each defect matter, ask:

• What defects are covered?
• What formal obligation exists?
• What is the deadline?
• Who is monitoring compliance?
• What evidence is being retained?
• What does the Owners Corporation still need to manage?

The owners corporation’s work does not disappear.

Even where a formal undertaking or order exists, the owners corporation should continue managing its defect register, expert reports, access arrangements, resident communication, urgent risk controls, insurance notifications, statutory building-bond work and relevant warranty, limitation or claim deadlines. It should retain the promise, undertaking or complete order—not only a summary email—and record all progress, inspections, photographs, reports and completion evidence.

Completion should not be assumed because work has started or a developer says an item is closed. The owners corporation should understand who will inspect the completed work, what standard will be applied, what evidence will confirm rectification and whether independent technical or legal advice is required. A regulatory process can strengthen accountability, but it does not replace the owners corporation’s own governance and protection of its rights.