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Contracts Under Home Building Act - Articles Surfing
Contents of the Contract
The Act and the Home Building Regulation 2004 (NSW) ("the Regulation") prescribe that the contract should be a written document and should have at least the following:
- the date of the contract
Most of the time, the contractor will require a deposit to be paid before commencing work. If the contract price is up to $20,000.00, then a maximum of 10% deposit can be requested. If the contract price is more than $20,000.00, the deposit will be 5%.
The contractor is not required to have home warranty insurance if the work is less than $12,000.00. Where home warranty insurance is required, then the deposit should only be paid after the contractor has provided a certificate of insurance.
Together with the contract, the contractor should provide a copy of a guide prepared by the Office of Fair Trading.
The contractor is also required to give the owner a copy of the signed contract within 5 days of signing. The owner also has the right to rescind the contract during the cooling-off period.
It is illegal for a contractor to carry out work without a written contract meeting the legislative requirements and the contractor is not able to seek compensation or enforce any other remedy against the owner for any work done.
There are a number of standard form contracts available all of which favour the builder, thus in these circumstances it would be advisable to consult a solicitor to explain the contract to you and draft any amendments prior to signing it. In the majority of cases which come before us the home owner ends up signing a document they do not understand and when problems arise they are put to considerable expense to obtain a remedy.
Irrespective of your circumstances call LAC Lawyers for an appointment to obtain proper advice whether you are at the pre-contract stage or after any problem has arisen following commencement of works.
Copyright © 1995 - Photius Coutsoukis (All Rights Reserved).
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