What is a builder legally obliged to do?

Jun 19, 2023 | Publication

In NSW, there are various obligations on builders when carrying out residential building work.

The Home Building Act 1989 states that the holder of a contractor licence, or a person required to hold a contractor licence before entering into a contract, warrants that:

(a) the work will be done with due care and skill and in accordance with the plans and specifications set out in the contract,

(b) 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,

(c) the work will be done in accordance with, and will comply with, this or any other law,

(d) 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,

(e) 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,

(f) 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.

Section 18B of the Home Building Act 1989 is relevant.

It is important to obtain legal advice regarding your position.  For an obligation free appointment, please contact either Steve McAuley or Bernard McAuley on (02) 9633 1826.

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