Update On Building Amendment Act 2013

The Building Amendment Act 2013 (‘Act’) changed the rules around residential building works from 1 January 2015.The changes include the following:

• Works worth more than $30,000 now require a written contract which must include details of the building timeframe, the process for varying the contract and the dispute resolution process.
• For works worth more than $30,000, or if requested, a prescribed checklist must be provided, together with information about the legal status of the builder, their dispute history, their skills and qualifications and licensing status.
• Work done to a household unit may automatically include a one year defect liability period in which the builder can be required to remedy defects.
• The Act also provides implied warranties in all works, that:
  • the work will be completed within a stated or reasonable time and will be in accordance with the plans, the building consent, all laws and legal requirements and with all reasonable care and skill in a proper and competent manner; and
  • supplied materials will be new (unless otherwise agreed) and suitable for the purpose for which they will be used.

If you are a builder, or if you are planning on having building works carried out on your property, then it is important that you are aware of your rights and obligations under any building contract.Before entering into any sort of contract for the provision of works, we strongly recommend that you seek advice from your lawyer.