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Construction Law News December 2011

The Home Building Act: significant changes in the new year

On 19 October 2011 NSW Parliament passed changes to the Home Building Act 1989 (NSW) to be implemented early next year. Under the amendments the following changes will be made:

  • The statutory warranties under the Act provided by those engaged in residential building work will be reduced from 7 years to 6 years for structural defects and 2 years for non-structural defects to come in line with the Home Warranty Insurance period
  • The threshold for Home Warranty Insurance will be lifted from $12,000.00 to $20,000.00
  • The scheme will allow less onerous written quote arrangements for work under $5,000.00 rather than use of a building contract
  • Notified insurance claims must be made within 10 years of the date of completion
  • The date of completion where no date is given in the Contract will be defined
  • An owner of land on which residential building work is carried out who owns or will own four or more proposed dwellings is a developer

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