Home Building Act:

The Home Building Act 1989 (NSW) (herein the “HBA”) is the principal piece of legislation regulating the home building industry in NSW. It provides homeowners with a level of protection from the risks associated with building or renovating a home, which represents a substantial investment for most homeowners.

The HBArequires builders and trades people to be licensed for the work that they do, and to implement appropriate contracts and insurance before the home building projects commence.

Clients should be aware of the Recent Amendments to the Home Building Legislation in NSW. The NSW Government has recently implemented some significant changes to the HBA.

Recent Changes to the HBA include:

• Definition for the date of Completion to overcome the previous difficulties faced by Owners Corporations in establishing the date of Completion;
• Exclusion of the Civil Liability Act 2002 for residential building work;
• In respect of building contracts entered into after 1 February 2012, a claim to enforce statutory warranties must be commenced within 6 years for structural defects and 2 years for other defects from the date of completion of the works;
• Insurance Claims have an extension period of 6 months for any losses that become apparent in the last 6 months of the period of insurance;
• Beneficiaries must enforce statutory warranties after loss becomes apparent;
• Developer includes the owner of land who also owns or will own four or more units in the development even if not a party to the building contract; and
• Insurance threshold increased to $20,000.

The remainder of the reforms are likely to be implemented in 2014 through the Home Building Regulation 2004. With limited exceptions, the amendments will extend to apply to:

• Residential building work commenced or completed prior to the amendments;
• A contract of insurance entered into prior to the amendments; and
• A loss or liability that arose prior to the amendments.

At Navado we are able to assist our clients to find practical solutions to a variety of building and construction related disputes and can advise on building and construction legal requirements concerning the following:

• Preparation for and legal requirements of building or renovating;
• Selecting a licensed tradesperson or builder;
• Legislative requirements and the building process;
• Preparation of building and or construction related contracts;
• Home warranty insurance;
• Becoming an owner-builder;
• Building a pool;
• What happens after  you build or renovate; and
• Resolving building disputes e.g. building defects.

If you require assistance with a building and construction legal matter, please contact us by telephone on (02) 9233 4048 or send an email to info@navado.com.au to make an appointment to see one of our Building and Construction Solicitors. 

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.