As of Jan 1st 2015 a number of changes in the Building Act came into force, offering more protective measures for consumers having building work done by a contractor.
The New Consumer Protection Measures were a result of the Building Amendment Act 2013, and aim to ensure there is a clear understanding in writing between homeowners and building contractors before building work commences.
A summary of changes to the Consumer Protection Measures are as follows:
- A written contract must be in place for any works costing $30,000 (incl GST) or more
- Before signing a building contract you must be issued a Department of Building and Housing standard checklist
- Your contractor must provide you with a disclosure statement which contains information about their skills, qualifications, licensing statement and any insurances and guarantees they provide before you sign a building contract
- An automatic defects period of 12 months comes into effect once your project is complete, where your contractor has to fix any defects you have advised them of in writing
- At the completion of your project, your contractor must provide you with information about any ongoing insurances, warranties, guarantees and any ongoing maintenance requirements for your new home
- There are new ways to take action when warranties in the Building Act have not been met
- Contractors can be fined if they don’t comply with the law
David Reid Homes North Shore director Martin Wiltshire says David Reid Homes has had a building contract in place as part of normal business operations for some time, providing a high level of protection and transparency to our customers.
“While the changes in the Building Act have required a few minor tweaks to our standard contract, these are not substantial as having a signed agreement was already our normal business practice,” Martin says.
“This gives our clients confidence that they are choosing to work with a company well versed in operating under a written contract and all the protection measures that provides.”