At Lou Projects, like most other small businesses and builders, we find ourselves amid an ever-evolving landscape of construction regulations. From updates in the National Construction Code (NCC 2022) to new sustainability measures, changes in Work Health & Safety regulations, and taxation reforms; each reform intention is good in theory, but it continues to burden small businesses with more and more admin.
The Impact of Regulation on Our Operations
As a small business dedicated to quality and efficiency in construction, the complexity of these regulations can be overwhelming. Running a small business means we don’t have large teams dedicated to handling each new regulation—usually, it’s just one builder and a small admin team struggling to keep up.
The effects of these changes extend beyond our operational capacity. There’s a broader impact to consider—the industry’s public perception. Negative media coverage and government sentiment can significantly undermine confidence, not just within our teams, but also among homeowners and consumers, whose trust is essential to our success.
The Cost of Compliance: Who Pays?
One critical aspect that often goes unnoticed is the cost of compliance. These costs are not just numbers on a balance sheet; they directly impact our clients. Increased operational costs due to regulatory compliance make building more expensive, and these costs are often passed on to you, the client, through the preliminary costs of a build. This is assuming, of course, that the builder has conducted a thorough cost analysis.
Building Smarter, Not Harder
The government’s ambitious goal to build 1.2 million homes over the next five years is commendable, but it’s crucial they understand how continuous reforms can complicate rather than simplify building processes. We believe that innovation and sustainability should enhance our ability to deliver high-quality homes efficiently—not add unnecessary burdens.
Conclusion: A Call for Balanced Reform
At Lou Projects, we’re committed to not only keeping up with these changes but also advocating for a regulatory environment that supports, rather than hinders, the growth and sustainability of the building industry. We’re asking to reduce the administrative burdens that can stifle small businesses like ours to ensure we can focus more on what we do best—building excellent homes for our clients.
Let’s ensure the drive for progress respects the practical realities of small businesses like ours. Let’s work together to create an environment where innovation leads to actual improvements in how we build, not just more checkboxes to tick off.
