Residential Building Contracts where the Price Exceeds $5,000.00 but not $20,000.00

The following contracting requirements apply to contracts to do “residential building work” where the contract price or (if the contract price is not known) the reasonable market cost of the labour and materials involved exceeds $5,000.00 (inclusive of GST) but not $20,000.00 (inclusive of GST) by virtue of the Home Building Act 1989(NSW).

Contracting Requirements

A contract must be in writing and be dated and signed by on behalf of the parties to it (Section 7AAA(2)).

The contract must contain the information and details required by Section 7AAA(3) of the Act, namely:

  1. The names of the parties, including the name of the holder of the Contractor Licence shown on the Contractor Licence,
  2. The number of the Contractor Licence,
  3. A description of the work to which the contract relates,
  4. Any plans and specifications for the work, and
  5. The contract price if known.

The contract must include a copy of the Consumer Building Guide March 2015 (Section 7AAA(4), Regulation 6).

The contract must also include (and is taken to include) each of the terms set out in Part 1 of Schedule 2 to the Act (Section 7E(1)).  If the Contract contains a term that is inconsistent with a term set out in Part 1 of Schedule 2 it will be unenforceable to the extent of the inconsistency.

Other Contract Requirements

A signed copy of the contract in the form in which it was made must be provided to the other party to the contract not later than five (5) clear business days after the contract was entered into (Section 7B).

Introduction – Contracting Requirements under the Home Building Act
Requirements Applicable to All Residential Building Contracts
Residential Building Contracts where the Price Exceeds $20,000.00 (incl. GST)
Residential Building Contracts for Works less than $5,000.00

Disclaimer

The above information is intended as a guide only and does not address all types of contracts regulated by the Home Building Act or Regulation.  This information in no way constitutes or substitutes legal advice.  Roberts Legal accepts no responsibility for any actions taken or not taken on the basis of the information above.

You should obtain specific legal advice on any matters of interests arising from this article.

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1300 553 343

By Sam Roberts,
Managing Director, Accredited Specialist (Commercial Litigation)