What should my building contract cover in Bathurst?
WHAT SHOULD MY BUILDING CONTRACT COVER IN BATHURST?
Building contracts are mostly fixed price lump sum, however, can also be costly plus on projects with evolving circumstances or specifications, we use contracts which are compiled by the Master Builders Association call me on 0408 373 323.
Residential Building Contracts Bathurst over $20,000
Residential building work worth more than $20,000 requires an extensive home building contract and it must contain:
- A sufficient description of the work to be carried out
- Plans and specifications attached
- Relevant warranties required by the Home Building Act 1989
- The contract price, which must be prominently displayed on the first page and a warning with an explanation if the contract price is subject to change or if the price is not known
- A progress payment schedule, which may only include the following types of payments:
- fixed payments to be made following the completion of specified stages of work. Payments must be of a specified amount or percentage of the contract price, and the stages of work must be described in clear and plain language.
- payments to be made as work is performed and costs are incurred (and which may include the addition of a margin), at intervals fixed by the contract or on an ‘as invoiced’ basis. Claims for this second type of progress payment must be supported by invoices, receipts or other documentation.
- a combination of the above two types of payments.
- A termination clause, which must include a statement that the contract may be terminated in the circumstances provided by the general law and that this does not prevent the parties agreeing to additional circumstances in which the contract may be terminated
- A note about your entitlement to a copy of the signed contract within five days of signing
- A note that the contractor must give you an insurance certificate under the Home Building Compensation (HBC) Scheme (formally known as home warranty insurance) if the contract is valued over $20,000
- A clause that states that the work will comply with:
- The Building Code of Australia, to the extent required under the Environmental Planning and Assessment Act 1979
- All other relevant codes, standards and specifications that the work is required to comply with under any law
- The conditions of any relevant development consent or complying development certificate a clause that states that the contract may limit the liability of the contractor for failure to comply with the above work compliance clause if the failure relates solely to:
- A design or specification prepared by or on your behalf of the owner or a design or specification required by the owner if the contractor has advised the owner in writing that it contravenes the clause referred to immediately above.
Go to fairtrading.nsw.gov.au to make sure all the details are correct and relevant to their guidelines before you sign a contract.