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As an owner-builder, you will probably be entering into several
contracts with different tradespeople. A Project properly contracted from
council to handover will eliminate pitfalls and unknowns and possible
save you $1000,s and help to eliminate disputes with
trades.
All tradespeople must hold a licence from the Office of Fair
Trading for the type of work they are to do (whether they are contracting
directly with the owner or have subcontracted through the principal
builder).
It is the obligation of the licensed builder or trade
contractor to provide a written contract for residential building work
where:
i) the contract price exceeds
$1,000
ii) if the cost of the labour and materials supplied by the
contractor exceeds $1,000.
A written contract is required between the licensed
builder/tradesperson and you, the owner-builder for building, renovation,
addition or maintenance to any home (including garage and swimming
pool).
What information must be included in a
contract?
The written contract you sign must
contain:
- the date
that it was signed by both you and your contractor
- your name
and the exact
name on your contractor’s licence card and the licence number
- a
sufficient description of the work to be carried out
- any plans
and specifications attached
- relevant
warranties required
- the
contract price, which must be clearly displayed on the front page
and a warning if the contract price is not known or subject to change,
together with an explanation of the effect of this provision
- a check
list of 12 items
- a caution
about signing the contract if you cannot answer yes to all items in the
check list
- a note
about your entitlement to a copy of the signed contract
- a note
about home warranty insurance
- an
acknowledgment by you that you have read and understood
the Consumer building
guide and that you have completed the check list it
contains and answered yes to all items on it
- a clause
that states that all plans and specifications for the work to be done
under the contract (including any variations to those plans and
specifications) are taken to form part of the contract
- a clause
that states that any agreement to vary the contract must be signed
by you and your contractor
- a clause
that states that work, or kit home components, will comply with the
Building Code of Australia, to the extent required under the Environmental Planning and Assessment Act
1979 including any instrument made under that ACT and all other relevant
codes, standards and specifications that the work is required to comply
with under any law and the conditions of any relevant development
consent or complying development certificate
- a clause
that states that the contract may limit the liability of the contractor
to comply with the clause referred to immediately above if the failure
relates solely to a design or specification prepared by or on behalf of
you, the owner, or a design or specification required by
you if the contractor has advised you in writing that it
contravenes the clause referred to immediately above.
If the contract price or the market cost of the labour and
materials is more than $12,000 your contract is subject to a cooling-off
period of 5 clear business days within which you may cancel the
contract.
The Office of Fair Trading recommends its plain English
home building contracts. Two different contracts have been produced
to cover all types of residential building work.
Resolving Disputes
If you are involved in a dispute with a contractor or
sub-contractor you may seek advice from any of the varous state bodies
listed below.
Relevant State
Authorities
Planning and Land Authority
[Australian Capital Terriroty]
The NSW Office of Fair Trading
[New South
Wales]
Building Services Authority
[Queensland]
Planning SA [South Australia]
WST Building Standards and Regulation [Tasmania]
Consumer Affairs Victoria
[Victoria]
Builder's Registration Board
[Western
Australia]
Departament of Planning and Infrastructure [Northern Territory]
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