Council staff will continue to be the only government appointed verifier for new homes and buildings in Scotland.
Verifiers protect the public by independently checking building work - from design through construction to completion - to make sure new homes, offices and public buildings meet all relevant building regulations.
Ministers have decided, following a recent consultation, that they will not introduce private verifiers and retain the services of council building standards departments, which employ around 700 staff across Scotland.
Minister for Local Government and Planning Derek Mackay said:
"Scotland's building standards system is recognised as being one of the most successful in Europe. Local authority building standards services are helping support sustainable economic growth while tackling climate change, promoting sustainability and improving compliance with building regulations.
"Following consultation, I have decided that local authorities are still best placed to protect the public and to deliver the government's key building standards objectives. I am extremely encouraged by the strong commitment that local authorities have given me to continue improving their services. This will be achieved by introducing a new performance framework next May, with a focus on improving performance and predictability, while enhancing the customer experience.
"While I understand the desire by some to introduce choice to the market, I believe local authorities are best placed, on this occasion, to serve the public interest given their four decades of experience."
A public consultation earlier this year looked at introducing the private sector on a limited basis to verify building standards. The consultation attracted nearly 200 responses from the construction and development sector, and nearly three quarters of those who responded were not in favour of change.