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This is Michelle's Home Building Act Checklist. It gives an analysis of the most recent amendments to the Home Building Act 1989 and a most useful list of when legislation commenced or took effect with regard to such things as the limitation periods for commencement of action with respect to the Home Owner's Warranties and other matters
HOME BUILDING ACT CHECKLIST
AMENDMENTS THAT COMMENCED on 25 OCTOBER 2011
The definition of “developer” has been extended to include the owner of land. Section 4(4) is amended to state that a developer must not contract with an unlicensed contractor.
The insertion of section 3B attempts to define the “date of completion of residential building work” .
An amendment to section 18C to state that residential building work done on behalf of a developer is taken to have been done by the developer.
An amendment to section 48C by the insertion of (1A) which allows a contractor to notify the Director-General of a dispute with respect to residential building work. The dispute cannot be one with another contractor.
Section 34 of the Civil Liability Act has been amended by the insertion of section 34(3A) to exclude claims in any action for damages arising from a breach of a statutory warranty under Part 2C of the Home Building Act. The amendment will not affect proceedings commenced before 25 October 2011 whether or not the proceedings were finally determined before 25 October 2011.
AMENDEMENTS TO COMMENCE ON 1 FEBRUARY 2012 – TO AFFECT CONTRACTS ENTERED ON OR AFTER 1 FEBRUARY 2012
An amendment to section 7 relating to form of contracts by the insertion of:
Section 7(1A) stating that the section only applies if the contract price or reasonable market value of labour and materials exceeds the prescribed amount, which is to be $5,000.00.
Section 7AAA relating to form of contracts for “small jobs” with the prescribed amount to be $1,000.00
An amendment to section 18E limiting the time to commence proceedings for a breach of a statutory warranty from 7 years to 6 years for a breach that results in a structural defect; and 2 years in any other case
An amendment to section 18E to define when the warranty period starts
An insertion of section 103BB setting out circumstances where a “delayed claim” may be made on a HOW insurance policy
The minimum insurance cover for the purpose of section 102(3) of the Act will increase from $300,000.00 to $340,000.00.
The threshold for residential building work requiring a policy of HOW insurance in place will increase from $12,000.00 to $20,000.00
The insurance excess on an insurance claim will be reduced from $500.00 to $250.00
***** SECTION 99(3) & 99(5) regarding suspension of builders licence under section 42A as act of insolvency ONLY APPLIES TO CONTRACTS OF INSURANCE ON OR AFTER 1 APRIL 2009 & 19 MAY 2009
***** SECTION 42A – SUSPENSION OF LICENCE FOR NON-PAYMENT OF CTTT ORDER APPLIES REGARDLESS OF THE DATE OF CONTRACT/DATE OF INSURANCE
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