New Consumer Protection Measures

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.”

Need to know more about the Consumer Protection Changes?  Check out the guide for people building or renovating here, or get in touch with us at David Reid Homes, we’re happy to help.