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 by the holder or person will be good and suitable for the purpose for which they are used and that, unless otherwise stated in the contract, those materials will be new,
- A warranty that the work will be done in accordance with, and will comply with, the Home Building Act or any other law,
- A warranty that the work will be done with due diligence and within the time stipulated in the contract, or if no time is stipulated, within a reasonable time,
- A warranty that, if the work consists of the construction of a dwelling, the making of alterations or additions to a dwelling or the repairing, renovation, decoration or protective treatment of a dwelling, the work will result, to the extent of the work conducted, in a dwelling that is reasonably fit for occupation as a dwelling, and
- A warranty that the work and any materials used in doing the work will be reasonably fit for the specified purpose or result, if the person for whom the work is done expressly makes known to the holder of the contractor licence or person required to hold a contractor licence, or another person with express or apparent authority to enter into or vary contractual arrangements on behalf of the holder or person, the particular purpose for which the work is required or the result that the owner desires the work to achieve, so as to show that the owner relies on the holder’s or person’s skill and judgment.
Such warranties are also implied in a contract under which a principal contractor enters into a contract with a subcontractor in connection with the carrying out of residential building work.