Consumer Building Guide NSW- Contract Contents – Insurance & Statutory warranties
Insurance
For work under $20,000 home warranty insurance is not required. There must be a statement on the contract about the builder or tradesperson’s legal requirement to have a current home warranty insurance (HOW)> home building compensation fund ( HBCF) policy if the work is for more than $20,000.
The builder or tradesperson must provide you with a certificate of insurance before
receiving any money (including a deposit) or before doing any work if the work is for more than $20,000. If a contract starts below $20,000 and reaches $20,000 during the course of work home warranty insurance is required. If the licensee does not give you a certificate of insurance and one is required, contact Fair Trading. You can check the validity of the certificate of insurance by contacting the home warranty insurer whose contact details appear on the certificate. Contact details for insurers are also available on the Fair Trading website.
Statutory Warranties
Relevant statutory warranties (guarantees about the performance of the work being done) are required by the Home Building Act 1989 ( as amended).
Statutory warranties set out your entitlements under the contract. Even if the contract
does not contain the list of warranties, they are implied under the law.
It is now 15/11/2022 and I only just found out there are changes on 1/1/2023.
Reference- NSW Fair Trading viewed 15/2/12, image source google
Como Building P/L, Michael Como provides in SYDNEY, an NSW Building Regulations Consultancy service that comprises, Interpretation of NSW legislation relevant to the construction of Class 1 and 10; Issuing: Complying Development Certificates (CDC), Construction Certificates (CC) [after a local council has approved a development], Occupation certificates (OC), Compliance Certificates, NCC Building Code Australia Reports. Engagement for the certification work is on a contract basis.
Also, a pre-purchase property inspection or building inspection by Michael Como may empower you with knowledge about the condition of a property currently or before you buy it and help you avoid future problems and unexpected costs. However, this service can only be conducted if the insurer is on-side, and currently, they are not and as a result, we do not conduct it.
Michael Como is Your Custom Home Builder in Sydney with over 46 years of construction experience, a Master Craftsman sharing innovative Restoration/renovation Ideas. Licensed since 1988. At this stage, I will only carry out building work at a contracted agreed hourly rate.
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