Builders are already required to submit building plans and obtain a permit before they start construction. They also have to get completion certificate before tenants move in. Despite these requirements, the current bureaucracy has evidently failed. A better protector of consumers would be strict liability of builders and developers for their constructions. It should let builders and buyers decide the terms of contract.
Economic diversity is also to be cherished.
But the government can nudge the process of establishing terms of such contracts by specifying default liability . It is the extent to which the builder is responsible in the absence of any specification of liability in the contract. Builders have more control over the quality of construction than prospective buyers, so in an open market, the liability is likely to rest on the shoulders of the builders. Rather than our legal system, a better enforcer of contracts would be insurance companies. Once builders are certain of their minimum liability, they would find it in their interest to insure against it.