A builder made promises to me during negotiations that aren’t in the Contract, what can I do?

It is not uncommon for a builder to make representations to a home owner in the course of negotiations for a Residential Building Contract where the subject matter of the representation is something that isn’t expressly covered in the final contract. However, where the home owner relies on a representation made, such that they otherwise … Read more

Do all residential building disputes have to be determined by the NSW Civil & Administrative Tribunal (“NCAT”)?

Generally, a builder or home owner may commence proceedings in relation to a residential building dispute in a Court of competent jurisdiction (subject to relevant limitation periods), or in the NSW Civil & Administrative Tribunal (“NCAT”) provided that: The amount claimed does not exceed $500,000.00 (Section 48K(1)), and Proceedings are commenced within three (3) years … Read more

When can I claim the costs of getting another builder to finish the job or rectify defects?

Almost always, a builder must be a given a reasonable opportunity to complete their own work or to rectify any defects within their works, before any further steps can be taken by an owner to have the work done by others. Most standard form building contracts used within the building industry contain specific steps which … Read more

Can the Department of Fair Trading force my builder to perform rectification work?

For a home owner, engaging a builder to carry our residential building work, whether it is for a new home, renovations and extensions or a smaller project, can be a very stressful time. One of the common issues that can arise and cause conflict with you builder occurs when the building works have not been … Read more

What should I do if the home owners are disputing a Progress Claim?

As a residential builder, obtaining payment from home owners can sometimes be a source of concern.  Of, course, prompt payments can be assisted by issuing Progress Claims when you are entitled to do so and having good communication withe home owners and processes in place to ensure Progress Claims are paid on time.  Needless to … Read more

When can I suspend work?

If you are a builder carrying out residential building work, there may be situations when you would like to suspend the building works.  Commonly this occurs when a home owner fails or refuses to pay a Progress Claim.  This can cause problems for a builder who, naturally, may be reluctant to continue carrying our the … Read more

When does the Building & Construction Industry Security of Payment Act apply to the Residential Building work?

Section 7(2)(b) of the Building & Construction Industry Security of Payment Act (‘SOP Act‘)  states that the Act will not apply to a construction contract for the carrying out of residential building work “on such part of any premises as the party for whom the work is carried out resides in or proposes to reside in”. Generally therefore, the … Read more

What are the Statutory Warranties implied under the Home Building Act?

By virtue of Section 18B of the Home Building Act, the following warranties are implied in every contract to do residential building work: A warranty that the work will be done with due care and skill and in accordance with the plans and specifications set out in the contract, A warranty that all materials supplied … Read more

What are the limitation periods for bringing a claim for breach of Statutory Warranty?

By virtue of Section 18E of the Home Building Act, proceedings for a breach of a statutory warranty must be commenced before the end of: 6 years for a breach that results in a major defect in residential building work, or 2 years in any other case.  “major defect” is defined to mean: (a)a defect in a major … Read more

When Can I Claim Under a Policy of Insurance Under the Home Building Compensation Fund?

Insurance under the Home Building Compensation Fund is required to be obtained by a builder entering into a residential building contract of greater than $20,000 with a home owner prior to commencing any work under that contract. Insurance policies under the Home Building Compensation Fund provide a set period of cover for loss caused by … Read more