residential building work contracts and dispute …€¦ · contracts for residential building work...

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RESIDENTIAL BUILDING WORK CONTRACTS AND DISPUTE RESOLUTION ACT 2016 Senior Audit and Compliance Officer Steve Collins Consumer, Building and Occupational Services Department of Justice

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Page 1: RESIDENTIAL BUILDING WORK CONTRACTS AND DISPUTE …€¦ · contracts for residential building work for a contract price of $20,000 or more. • Designed to help you avoid disputes

RESIDENTIAL BUILDING WORK CONTRACTS AND DISPUTE RESOLUTION ACT 2016

Senior Audit and Compliance OfficerSteve Collins

Consumer, Building and Occupational Services

Department of Justice

Page 2: RESIDENTIAL BUILDING WORK CONTRACTS AND DISPUTE …€¦ · contracts for residential building work for a contract price of $20,000 or more. • Designed to help you avoid disputes

Purpose of ACT

• To regulate certain residential building contracts

• To provide for the resolution of disputes arising under or related to such

contracts for residential building work for a contract price of $20,000 or

more.

• Designed to help you avoid disputes and common pitfalls, by explaining your

rights and obligations under the Act.

Residential Building Work Contracts and Dispute Resolution Act 2016

Page 3: RESIDENTIAL BUILDING WORK CONTRACTS AND DISPUTE …€¦ · contracts for residential building work for a contract price of $20,000 or more. • Designed to help you avoid disputes

Residential Building Work

• New houses

• Renovations

• Alterations

• Extensions

• Improvements

Residential Building Work Contracts and Dispute Resolution Act 2016

• Repairs and conversions of non-habitable buildings into residential

buildings (for example a barn or shipping container into a house).

Page 4: RESIDENTIAL BUILDING WORK CONTRACTS AND DISPUTE …€¦ · contracts for residential building work for a contract price of $20,000 or more. • Designed to help you avoid disputes

Certain contracts taken to be one contract

If a building contractor and an owner

enter into 2 or more separate contracts

that –

• The separate contracts are taken to

be a single contract for which the

contract price is the sum of the

contract prices

Residential Building Work Contracts and Dispute Resolution Act 2016

Page 5: RESIDENTIAL BUILDING WORK CONTRACTS AND DISPUTE …€¦ · contracts for residential building work for a contract price of $20,000 or more. • Designed to help you avoid disputes

Contracts

• sets out in full all the terms of the contract

• specifies the names of the parties

• licence holders name

• description of plans

• the contract price

• specifies the date of practical completion

• sets out the warranties

• include the required checklist

• Attached the residential building consumer guide

Residential Building Work Contracts and Dispute Resolution Act 2016

Page 6: RESIDENTIAL BUILDING WORK CONTRACTS AND DISPUTE …€¦ · contracts for residential building work for a contract price of $20,000 or more. • Designed to help you avoid disputes

Residential Building Work Contracts and Dispute Resolution Act 2016

Which can be located at www.cbos.tas.gov.au .

• A copy of the Residential

Building Consumer Guide is to

be provided to the owner as part

of the contract

Page 7: RESIDENTIAL BUILDING WORK CONTRACTS AND DISPUTE …€¦ · contracts for residential building work for a contract price of $20,000 or more. • Designed to help you avoid disputes

Contracts must be in writing

• Contract to be in written form

• Signed

• Copy must be provided to the owner

Residential Building Work Contracts and Dispute Resolution Act 2016

Page 8: RESIDENTIAL BUILDING WORK CONTRACTS AND DISPUTE …€¦ · contracts for residential building work for a contract price of $20,000 or more. • Designed to help you avoid disputes

Variations

Residential Building Work Contracts and Dispute Resolution Act 2016

• Variation must be in written form

• Describe the variations

• State the reason for variation

• Detail the cost

• Signed by builder and owner

• Variations should not commence before signing

• Copy must be provided to the owner

Page 9: RESIDENTIAL BUILDING WORK CONTRACTS AND DISPUTE …€¦ · contracts for residential building work for a contract price of $20,000 or more. • Designed to help you avoid disputes

Obligations of Building Contractor

• Must, within 10 business days after work begins to be performed, give to the

owner a commencement notice.

• Must, within 10 business days after the date of practical completion give a

notice of practical completion to the owner.

• As soon as practicable, but in any case within 6 months, after giving to an

owner a defects document in relation to a minor defect or minor omission,

must take all reasonable steps to correct the defect or the omission.

Residential Building Work Contracts and Dispute Resolution Act 2016

Page 10: RESIDENTIAL BUILDING WORK CONTRACTS AND DISPUTE …€¦ · contracts for residential building work for a contract price of $20,000 or more. • Designed to help you avoid disputes

Owner

– Within 5 days of receiving the contract.

– With in 7 day of becoming aware the owner should of

received the residential building consumer guide.

Cooling-off Period

Page 11: RESIDENTIAL BUILDING WORK CONTRACTS AND DISPUTE …€¦ · contracts for residential building work for a contract price of $20,000 or more. • Designed to help you avoid disputes

Restrictions affecting cooling-off period

(5 days Section 33)

Residential Building Work Contracts and Dispute Resolution Act 2016

An owner may not withdraw from the contract if –

the owner and building contractor previously entered into a previous

contract and the terms are substantially the same.

An owner may not withdraw the contract if before entering into the contract,

the owner received formal legal advice about the contract.

When, or after, the contract is entered into, the owner tells the building

contractor that the owner received formal legal advice about the contract

before entering into the contract.

Page 12: RESIDENTIAL BUILDING WORK CONTRACTS AND DISPUTE …€¦ · contracts for residential building work for a contract price of $20,000 or more. • Designed to help you avoid disputes

Mediation

• A builder or an owner may lodge a notice of dispute

• A copy must be served on the other party (building contractor or owner).

• The notice must specify the grounds of the dispute.

Residential Building Work Contracts and Dispute Resolution Act 2016

Page 13: RESIDENTIAL BUILDING WORK CONTRACTS AND DISPUTE …€¦ · contracts for residential building work for a contract price of $20,000 or more. • Designed to help you avoid disputes

Guide to

Resolving Residential Building Works Issues

Residential Building Work Contracts and Dispute Resolution Act 2016

Page 14: RESIDENTIAL BUILDING WORK CONTRACTS AND DISPUTE …€¦ · contracts for residential building work for a contract price of $20,000 or more. • Designed to help you avoid disputes

Guide to

Resolving Residential Building Works Issues

Residential Building Work Contracts and Dispute Resolution Act 2016

Resolving Issues –all building work

Resolving Issues –defective building work

Page 15: RESIDENTIAL BUILDING WORK CONTRACTS AND DISPUTE …€¦ · contracts for residential building work for a contract price of $20,000 or more. • Designed to help you avoid disputes

Guide to

Resolving Residential Building Works Issues

Residential Building Work Contracts and Dispute Resolution Act 2016

Resolving issues –Contracts

Formal Complaints

Page 16: RESIDENTIAL BUILDING WORK CONTRACTS AND DISPUTE …€¦ · contracts for residential building work for a contract price of $20,000 or more. • Designed to help you avoid disputes

• New CBOS website with enquiry form: www.cbos.tas.gov.au

• Facebook: www.facebook.com/TasBuildingStandards/

• Helpline: 1300 654 499

• Email: [email protected]

Where can I find out more?

Residential Building Work Contracts and Dispute Resolution Act 2016

Page 17: RESIDENTIAL BUILDING WORK CONTRACTS AND DISPUTE …€¦ · contracts for residential building work for a contract price of $20,000 or more. • Designed to help you avoid disputes

Residential Building Work Contracts and Dispute Resolution Act 2016