Operation Broadwater sent inspectors across 17 towns from Coffs Harbour to Tweed Heads. Most builders passed. But the issues that keep showing up across every regional campaign tell a clearer story about where the pressure points are.
Over 100 sites. 17 towns. 75 penalties.
That is the headline result from Operation Broadwater, Building Commission NSW’s latest regional compliance sweep, covering the NSW Mid North and North Coast.
Inspectors visited Casuarina, Coffs Harbour, Corindi Beach, Cudgen, Cumbalum, Goonellabah, Kingscliff, Lennox Head, Moonee Beach, Mullumbimby, Southwest Rocks, Terranora, Toormina, Tweed Heads South, Valla Beach, Woolgoolga, and Yamba.
They issued 35 fines and 40 Written Direction Notices (WDNs) across licensing, signage, plumbing, and electrical compliance.
The majority of builders welcomed inspectors and were doing the right thing. That part matters, and it is worth saying plainly.
But the issues identified are not new. And that pattern is worth paying attention to.
What the Numbers Actually Show
Of the 35 fines issued, 23 were for unlicensed work and contracting. That is nearly two in three penalties going to one issue.
Five more fines were for incorrect display of signage. Five for non-compliant plumbing in heat pump installations. Two for non-compliant electrical work on heat pump installations.
The 40 WDNs covered a different set of issues, most of them connected to battery systems and energy technology. Twenty-six notices were issued for missing Safety Data Sheets for battery systems. Sixteen for inadequate main switch labelling. Eleven for insufficient signage detailing battery system voltage and currents.
Read those numbers together and two things become clear.
Unlicensed work remains the dominant compliance issue across NSW regional construction.
And energy technology, specifically heat pumps and battery systems, is becoming a growing compliance problem as it moves into mainstream residential builds.
Unlicensed Work Is Not a Minor Issue
It keeps coming up because it keeps occurring.
Earlier this year, Building Commission NSW’s South Coast operation resulted in 47 Written Direction Notices for electrical and plumbing issues and 10 fines, with unlicensed work again identified as a core problem. The Hunter Region operation in 2025 produced the same headline finding.
“While we are generally pleased with the results from our recent inspections, the number of unlicensed workers is a concern, and something our inspectors will be cracking down on statewide.” NSW Building Commissioner James Sherrard
That enforcement posture is not softening. If anything, Operation Broadwater confirms it is expanding geographically.
For licensed builders and trades, the practical takeaway is straightforward. If someone is on your site performing licensed work, you need to have verified their credentials. Verbal assurances are not enough. The licence check takes minutes. The exposure for getting it wrong is significant, and the regulator is making clear that “I didn’t know” is not a defence they are accepting.
The Heat Pump Problem Nobody Is Talking About Enough
The second pattern in Operation Broadwater is arguably more significant for the medium term.
Seven of the 35 fines, and the majority of the WDNs, related to heat pumps and battery storage systems. This is new territory for a lot of residential builders and trades. These technologies are being installed at volume in new builds, but the compliance knowledge base has not always kept pace with the installation rate.
Non-compliant plumbing on heat pump installations. Non-compliant electrical work on heat pump installations. Missing Safety Data Sheets for batteries. Inadequate labelling on main switches. Insufficient voltage and current signage.
These are not fringe issues. They are showing up across multiple regions, multiple operations, and multiple trades.
The building industry is being asked to deliver more energy-efficient homes faster than ever. The regulatory framework around the technology required to do that is live and being enforced right now.
If your team is installing heat pumps or battery systems and has not recently reviewed current compliance requirements, that is worth doing before an inspector turns up.
Why Regional Corridors Are Getting More Attention
The North Coast is one of the fastest-growing residential regions in NSW.
The Tweed Coast, in particular, has seen sustained population growth driven by interstate migration, lifestyle demand, and infrastructure investment. New estates are progressing. Construction pipelines are deep. And demand for trades is high, which is exactly the environment where licensing corners can get cut under pressure.
Building Commissioner James Sherrard confirmed that a previous South Coast operation formed part of a broader push, following more than 850 regional site visits in 2025, described as the largest effort of its kind. Operation Broadwater is a continuation of that program, not a one-off.
Building Commission NSW conducts regular compliance inspections across NSW to monitor how homes are built and ensure construction meets quality standards. The regional blitz model is now an established part of that approach.
The message to anyone working in regional NSW construction is that proactive enforcement has moved beyond metropolitan markets. The resources are being directed to where growth is happening.
Industry Seminars Running Alongside Inspections
One aspect of Operation Broadwater that deserves more attention than it typically gets is the seminar program running in parallel with the compliance activity.
Building Commission NSW delivered targeted industry seminars in Coffs Harbour and Tweed Heads, focused on licensing and supervision requirements, Home Building Compensation Fund obligations, and recent changes to regulatory requirements.
More seminars are confirmed for later in 2026, covering Queanbeyan, Dubbo, Bathurst, Port Macquarie and Forster, Albury, and a return to the Tweed Heads and Coffs Harbour corridor.
These are free. They are run by the regulator. And the content covers exactly the areas where builders and trades are getting caught.
If you are operating in any of these regions, attending is a straightforward way to get ahead of compliance gaps before an inspector visits your site.
The Good Builder Take
Building Commission NSW is running more operations, covering more ground, and issuing more penalties than at any point since its establishment in 2023.
That is not a reason to be alarmed if you are running a compliant business. It is a reason to stay sharp.
The two issues to focus on coming out of Operation Broadwater are the same ones that have come out of every regional blitz this year. Verify the licences of everyone on your site performing licensed work, every time. And if your team is installing heat pumps or battery systems, make sure they are across the current compliance requirements before the work starts.
The regulator is consistent about what it is looking for. The builders and trades staying out of trouble are the ones taking compliance as seriously as the quality of the work itself.
For more coverage on building compliance, regulation, and what it means for your business, visit thegoodbuilder.com.au or listen to The Good Builder Podcast on Spotify.
General Information Disclaimer:
This article is intended for general informational purposes only and does not constitute legal or regulatory advice. Builders and trades should refer directly to Building Commission NSW and the relevant legislation for current licensing and compliance obligations.
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