Residential building consumer protection laws have now been in force for more than 5 months, however many building contractors are unaware of the changes or are not yet compliant with them. The new laws apply when carrying out any residential building work for a client which is valued over $30,000. If a contractor fails to meet the new requirements then they can be fined a minimum of $500 per offence but up $20,000 in some circumstances. 'Building work' covers many different trades and covers any work for, or in connection with, a residential building or other residential structures not occupied by people (such as retaining walls and fences).
A residential building contractor is now required to provide specific information to a client pre and post contract. They are also responsible for ensuring that the parties enter into a written contract which must include a number of mandatory terms. This means that a contractor needs to provide the following documents for every project:
- Disclosure contractor information and checklist;
- Form of written contract (covering the mandatory terms); and
- Post contract disclosure.
We understand that many contractors are too busy to spend time and effort coming up to speed with the new regulations. If this applies to you then contact the team at Cavell Leitch and we can make it a straightforward process. We can provide you a tailored contract which can be used for all your clients at a one-off cost. The agreement will ensure you are meeting your responsibilities under the new laws while providing you the appropriate protection as the contractor. We will also provide you with a suite of supporting documents to help ensure proper disclosure and provision of information to every client as required under the new laws.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.