What Is a Construction Certificate in NSW? From Consent to Occupation Certificate

A development consent is planning approval, and it does not let you start building. Between consent and handover sit a construction certificate, a principal certifier, a set of inspections and an occupation certificate. For a developer each one has a date and a cost, and holding costs run through all of them.

What is a construction certificate?

A construction certificate (CC) is the building approval that follows the consent. The NSW Government's guide to the DA process says it must be obtained from your council or an accredited certifier, and that it includes your detailed building plans, engineering details and specifications. Those plans will most likely contain a lot more information than the DA plans, so the builder can work directly from them.

The building must be consistent with the CC and the development consent. If a plan change is inconsistent with the DA plans, someone has to assess whether an application to modify the consent is needed, and our post on section 4.55 modifications explains how that test works.

What has to happen before work can start?

The same guide lists four things you must do before building starts.

• Get a construction certificate from your council or a private certifier.
• Appoint a principal certifier to monitor construction.
• Give the council and the principal certifier two days' notice before you start work.
• Complete any works listed in the "prior to commencing work" part of the consent.

The last item comes from the conditions of consent. The guide adds that you may need to provide additional reports and pay refundable bonds or development contributions to the council before a CC is issued. Our posts on conditions of consent and section 7.11 and 7.12 contributions cover what those conditions look like and why they land early in the cash flow.

Who is the principal certifier, and who appoints them?

The principal certifier oversees construction, completes the mandatory critical stage inspections and, when work is finished and the requirements are met, completes the final inspections and may issue the final occupation certificate. This is set out on the Service NSW page on appointing a principal certifier.

The owner appoints the principal certifier, not the builder. Service NSW states that the builder is not allowed to appoint the certifier or influence your choice. A principal certifier can be a registered building surveyor, your local council or a registered body corporate, and Service NSW advises checking the certifier's registration, insurance and disciplinary record before signing a contract.

The planning guide lists the inspections generally required as piers, slab, frame, stormwater, wet area and final. Missing one can lead to delays, so the program should show when each is booked.

What is an occupation certificate?

An occupation certificate (OC) authorises the occupation and use of a new building in accordance with a development consent. The department's guidelines on occupation certificates set out the rules for issuing one.

Three points from those guidelines matter for a developer:

• Only the certifier appointed as principal certifier for the development can issue it.
• It cannot be issued unless a development consent and a construction certificate, or a complying development certificate, have already been issued.
• Once issued, it is taken to be part of the development consent.

The application has to be accompanied by documents including a copy of the construction certificate and any relevant fire safety certificate. A BASIX completion receipt is also required where the development needs one.

How does this change if the project is a dual occupancy?

The sequence is the same, and a subdivision adds a step after it. Splitting a dual occupancy onto two titles needs its own approval, which we cover in subdividing a dual occupancy in NSW. Complying development changes the first step, because the pathways differ and our CDC vs DA post compares them.

What this means for the timeline

Every step in this chain sits between consent and the day the dwellings can be sold or occupied, and interest accrues on the loan the whole time. A CC that is delayed by missing engineering, a principal certifier appointed late or a failed inspection each add weeks to the holding period. The development feasibility numbers should carry a realistic allowance for them.

If you are weighing a site, ask us for an assessment and we will model the program with the approvals included.

Common questions

What is a construction certificate in NSW?

A construction certificate is the building approval that follows a development consent. It is issued by your council or an accredited certifier and includes detailed building plans, engineering details and specifications, usually with far more information than the plans approved with the development application. You need one before building work starts.

Who appoints the principal certifier?

The person who has the benefit of the development consent, which means the owner and not the builder. Service NSW states that the builder is not allowed to appoint the certifier or influence the choice of a certifier.

What does an occupation certificate do?

An occupation certificate authorises the occupation and use of a new building in accordance with the development consent. Only the principal certifier for the development can issue it, and it cannot be issued unless a development consent and a construction certificate, or a complying development certificate, have been issued.