By Andrew Steele - 23 Dec 2014
As the building industry rides the wave of buoyant construction,
new regulations coming into force on 1 January 2015 introduce more
consumer protection and compliance requirements for
tradespeople.
The title - Building (Residential Consumer Rights and Remedies)
Regulations 2014 - speaks volumes for the content of these rules.
These regulations will catch builders, plumbers, electricians and
other tradespeople who enter into contracts involving building work
on a place of residence. It will apply to sole traders, companies
and partnerships alike.
Contractors
The regulations require building contractors to provide a client
with prescribed disclosure information and a prescribed checklist.
Contractors must do this before entering into a residential
building contract of a value of more than $30,000 (including GST),
or in lower value contracts if required. The residential building
contract must be in writing. It if is oral, or is incomplete,
certain key terms will be deemed to have been included in that
contract.
There are other new obligations after the work is
done. These include providing copies of insurance policies,
guarantees and warranties and information on maintenance. The
defects liability period will be 12 months post-completion.
Along with the regulations, infringement offences have been
created which could lead to builders being fined $500 for failure
to provide either of the prescribed documents or a written
contract.
DIYers
DIY homebuilders could face an instant fine of $750 for carrying
out restricted building work when not working under the supervision
of a licensed building practitioner.
In a year that will already see builders getting to grips with
the significant increase in obligations under the health and safety
law changes, this additional layer of compliance is unlikely to be
welcomed with open arms. However, the many diligent and
professional tradespeople within the industry who already ensure
that their clients are well-informed will not have to change their
practices much beyond personalising the prescribed disclosure
information and passing on the checklist and other key documents at
the end of the work. It can also be hoped that the checklist for
consumers may go some way to ensuring that property owners are
better informed when entering into building contracts.
You can find links to the relevant legislation here:
Building (Residential Consumer Rights and Remedies) Regulations
2014
Building (Infringement Offences, Fees, and Forms) Amendment
Regulations 2014
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