Second Round of changes to the Home Building Act are coming on 1 March

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Following on from our recent articles about changes to the Home Building Act, the second and final round of changes are scheduled to kick off on 1 March.

These changes will affect contracts, progress payments and sub-contractors now becoming liable for defects.

In more detail the changes relate to:

  1. The threshold is being raised for the more detailed contract requirements from $5,000 to $20,000. Home building work under $20,000 will still need a written ‘minor works’ contract.
  2. A cap on deposits for work over $20,000 will be increased from 5% to 10%. Builders will only be able to request a maximum of 10% for a deposit for all projects, regardless of the value.
  3. Contracts over $20,000 will need a progress payment schedule (only authorised payments are allowed) and a termination clause.
  4. The mandatory consumer building guide, to be provided to consumers before entering a contract, is being streamlined to provide essential information on both parties’ rights and responsibilities.

Again we reiterate that many industry experts are of the view that these changes are not in the best interest of the Strata Management sector. Time and future litigation will tell, but its important that if any Owners Corporations feel that they may have a claim against a builder for any defect rectification you should contact your Strata Manager to discuss immediately.

For further information you can head along to the fair trading website here ( )



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