New requirements for Builders = greater protection for consumers

February 11, 2015

in Building & Construction,Property

Property: Unit Titles Act 2010The Building Amendment Act 2013 came into force on 1 January 2015.  The amendments came as a result of a comprehensive review of the Building Act 2004, which was undertaken by Cabinet.

The main aim of the amendments was to improve the building and construction industry so that good quality and affordable homes and buildings would be provided to consumers which in turn would stimulate growth and contribute to a flourishing economy.

It is hoped that the changes will provide incentive for builders and trades people to take more responsibility for, and pride in, the quality and standard of their work.

This has also resulted in greater protection and rights for consumers involved in the residential construction industry.

In summary, the protections and rights for consumers provided for in the Act are as follows:

  1. All residential building work with a minimum price of $30,000.00 (including GST) must be by way of a written contract containing minimum requirements.
  2. Where the price of the building work is over $30,000.00 (including GST), or where the consumer requests it, the building contractor must provide:
    (a) a checklist containing tips on engaging builders and project management.
    (b) disclosure in respect to business information, key contacts and their role and qualifications, the insurance cover held and warranties offered.
  3. Residential building contracts will include implied warranties and remedies for breach of those implied warranties.
  4. Any defective work under a residential building contract discovered by the consumer within one year of completion of the build is to be remedied by the building contractor within a reasonable time – “no questions asked”.
  5. After completion of the building work certain information such as who the contractor was, details of any guarantee or insurance obtained by the building contractor and any maintenance requirements for products used in the building must be provided to the consumer by the building contractor.

As a builder you will need to ensure you have procedures in place in order to comply with these new requirements. As a consumer you will need to ensure that when contracting with your builder that they are complying with these new requirements.

The Department of Building and Housing has advised that a comprehensive advice, information and education campaign will be rolled out to support the regulations.

We are experienced in all aspects of property, contract and construction law, advising both consumers and building contractors.

If you require any advice or further information on the matters dealt with in this publication please contact the lawyer at Farry and Co. who normally advises you, or alternatively contact:

Erin Maher
09 379 0055 or 03 477 8870


The information contained in this publication is intended as a guide only.  It does not constitute legal advice and should not be relied upon as such.  Professional advice should be sought before applying any of the information to particular circumstances.  While every reasonable care has been taken in the preparation of this publication, Farry and Co. does not accept liability for any errors it may contain.

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