Information courtesy Housing Industry Association
On 28th May 2014, the Home Building Amendment Bill 2014 (Bill) passed through both houses of the NSW Parliament.
The Bill provides a clearer definition of a ‘major defect’ providing certainty for the industry and does not adopt the Queensland approach to progress payments which requires compliance with a series of ‘regulated stages’.
Among other things, the Bill also:
- increases the allowable deposits for all residential building work to 10% of the contract price,
- introduces obligations on homeowners to mitigate their loss in relation to a claim for breach of statutory warranty,
- provides an express right to builders to enter a property to carry out rectification works; and
- enables a builder to rely on written instructions provided by a ‘relevant professional’ acting for the homeowner as a defence to a claim for breach of statutory warranty.
Home Warranty Insurance will be known as insurance under the Home Building Compensation Fund.
At this stage there is no commencement date for the reforms however we are advised by HIA that the Government intends to engage with stakeholders in relations to this and any other further regulations needed to accompany the Bill. HIA has been actively engaged with Government during this process as an advocate for the building industry.
If you need further information regarding this Amendment, please contact your HIA Workplace Advisor on 1300 650 620.
