Home Building Contract (2) - NSW

NSW Office of Fair Trading version:

Home Buidling Contract

For work under $25,000

download from here

(Source: faritrading msw)

Home Building Contract (1) - NSW

NSW Office of Fair Trading version:

Home Buidling Contract

For work over $25,000 and al l residentialswimming pools

download from here

(Source: faritrading msw)

What's Residential building work?

Residential building work is any work involved in the doing or the supervision or the co-ordination of the construction of (or alterations, repairs or additions to, or protective treatment of) a dwelling.
A dwelling (ie. house, terrace, villa, home unit, etc) includes:
swimming pool or spa
garage, shed, cupboards, driveway, fence, and
various other structures prescribed by the regulations when they are constructed for use in conjunction with a dwelling.
A developer usually arranges for another party (licensed contractor) to do the residential building work.
The contractor (whether an individual, company or partnership) which carries out the building work is:
responsible for the entire project
subject to the licensing and insurance requirements of the Home Building Act.

What are my responsibilities as an owner-builder? (NSW)

As an owner-builder, you are responsible for:

• overseeing and supervising all tradespeople
• ordering of materials and management of the building site
• obtaining all necessary council and authority approvals
• ensuring that the financial, taxation and insurance requirements of the building work are met and fully comply with all laws
• being aware of your obligations under the Workers Compensation Act 1987 and Occupational Health and Safety Act 2000 and providing a safe work environment that complies with WorkCover requirements
• ensuring any contractor engaged is appropriately licensed and insured to do the work contracted for
• warranting that the work and materials will be fit for the purpose and that the work results in a dwelling fit for occupation.
  

Do your sums before you start and ask yourself if any saving you will make is worth the time and responsibility it will take.

As an owner-builder you are guaranteeing the work you undertake.
It is an offence under the Home Building Act (maximum penalty $22,000) for the holder of an owner-builder permit to:

• knowingly engage an unlicensed contractor
• lend your permit to another person
• refuse to disclose to an authorised officer the names and addresses of contractors working on the site.

If you don’t want the responsibility of being an owner-builder, you should be wary of a builder who suggests you obtain an owner-builder permit while they do all the building work for you. This may be a ploy where the builder is shirking responsibility, is unlicensed, or is unable to get necessary insurance.

The Facts on Being an Owner-Builder (VIC)

Did you know that owner-builder take on all the risks and responsibilities of a registered building practitioner?

Before you decide to do-it-yourself, get the facts on being an owner-builder.

• Fact: Owner-builders must obtain a Certificate of Consent for any domestic building work with a value over $12,000 in order to obtain a building permit.
• Fact: Owner-builders can only obtain a building permit for one home every three years.
• Fact: Owner-builders do not build for a profit.
• Fact: Owner-builders must be an owner of the land/property.
• Fact: Owner-builders must reside and continue to reside, or intend to reside in the property.

What type of insurance is required for an owner-builder? (VIC)

Builders Warranty Insurance

Builders Warranty Insurance is required by all domestic builders who enter into domestic building contracts in which the contract price for the building work is more than $12,000. Insurance provides important protection for building consumers, in the event that a builder dies, becomes insolvent or disappears, and can't finish the building project or fix defects.

Professional Indemnity InsuranceProfessional Indemnity Insurance is required by the following building practitioner categories and classes:

• Building surveyor
• Building inspector
• Quantity surveyor Engineer - Civil, Mechanical, Electrical & Fire Safety
• Draftperson - Building design (architectural, interior and services)
• Architect (Please note: architects are registered with Architects Registration Board Victoria)

Professional indemnity insurance indemnifies the practitioner against legal liability resulting from any claim or claims made during the period of insurance.

Public Liability Insurance

Public Liability Insurance is required by the following building practitioner categories and classes:

Public Liability Insurance indemnifies the building practitioner against legal liability resulting from any claim or claims made during the period of insurance

• Builder - Demolisher (low rise buildings, medium rise buildings and unlimited)
• Erector or supervisor (temporary structures)

Structural Defects/Builders Indemnity Insurance

Builders Indemnity Insurance for Structural Defects is required by all commercial builders (unlimited).

What's a Construction Certificate

"construction certificate" means a certificate referred to in section 109C (1) (b).

"control", in relation to development or any other act, matter or thing, means:

(a) consent to, permit, regulate, restrict or prohibit that development or that other act, matter or thing, either unconditionally or subject to conditions, or

(b) confer or impose on a consent authority functions with respect to consenting to, permitting, regulating, restricting or prohibiting that development or that other act, matter or thing, either unconditionally or subject to conditions.

(Source: austlii)