Fill - Free fillable Home Building Contract $5000 To $20000 (New South Wales) PDF form

Home building contract

for work over $5,000 and

up to $20,000

www.fairtrading.nsw.gov.au

Legislation obliges a contractor to give a copy of the Consumer building guide

to consumers before entering into a home building contract.

This contract includes a copy of the Guide or it can be downloaded from our website.

This publication can be viewed or printed from our website at

www.fairtrading.nsw.gov.au

This contract is recommended for trade work (such as carpentry/painting/tiling/

electrical or plumbing work), building work for minor additions and renovations,

repairs, maintenance and improvements to residential properties worth over $5,000.

This contract cannot be used for work requiring insurance under the Home Building

Compensation Fund.

For home building work such as a new home or major renovations, and major trade

work valued at over $20,000, you must use the Home Building Contract for work

over $20,000.

This contract complies with the requirements of the Home Building Act 1989 for

contracts valued over $5,000 and up to $20,000.

ou must obtain permission from NSW Fair Trading if you wish to copy this Home

Building Contract other than downloading, printing or distributing it in order to use it

as intended as a home building contract.

Important: For full details, see NSW Fair Trading’s copyright policy at

www.fairtrading.nsw.gov.au/ftw/Copyright.page or

email publications@nance.nsw.gov.au

Revised June 2018

Fair Trading recommends that both parties seek independent legal advice prior to

entering into a home building contract or reducing, restricting or removing any contract

term recommended by NSW Fair Trading.

Owner

Name(s)

Address

Home phone Other phone

Fax Email

Contractor

Name (as shown on Contractor licence)

Licence number Expiry date

Category of work shown on licence

Address (as shown on Contractor licence)

Work phone Other phone

Fax Email

Australian Company Number (if applicable)

Address where work is to be done (site)

Completion period

The completion period

for the work will be

Description of work/materials

Any plans or specications that are part of the contract

must be attached and should be signed and dated by

both parties.

Contract price

(including GST)

Important:You can only be asked to pay a maximum

deposit of 10% of the contract price before any work

is done.

Note: This work is warranted for 6 years from

completion for major defects and 2 years for all other

defects as required under the Home Building Act 1989.

No provisions in this contract can restrict or remove the

statutory warranties applying to this contract under the

Home Building Act 1989. See the Consumer building

guide at the end of this contract for more details.

Warning: The contract price may vary in accordance with

contract conditions, for example as the result of variations.

A signed copy of the contract must be given to the owner

within 5 clear business days after the contract is entered

into. This is a requirement under the Home Building

Act 1989.

Contract: Owner’s copy

/ /

Contractor’s

signature

Date

/ /

Acceptance of contract

Owner’s

signature

1. Quality of construction

All work done under this contract will comply with:

1. (a) the Building Code of Australia to the extent required under the Environmental

Planning and Assessment Act 1979 (including any instrument made under

that Act)

 (b)allotherrelevantcodes,standardsandspecicationsthattheworkis

required to comply with under any law

developmentcerticateandanyconstructioncerticate.

2. This contract may limit the liability of the contractor for a failure to comply with (1)

if the failure relates solely to:

 (a)adesignorspecicationpreparedbyoronbehalfoftheowner

(but not by or on behalf of the contractor), or

 (b)adesignorspecicationrequiredbytheowner,ifthecontractorhasadvisedthe

ownerinwritingthatthedesignorspecicationcontravenes(1).

2. Payment by owner

The Contract Price includes all matters (including GST) that could be reasonably

expected to be necessary for the completion of the work. The work will be complete

whenitisnishedinaccordancewiththiscontract(exceptforanyomissionsor

defects that do not prevent the work from being reasonably capable of being used

for its intended purpose), any damage caused by the contractor is repaired and all

rubbish and surplus material are removed from the site. The owner must pay the

amount due on satisfactory completion of the work, or each stage of the work if

applicable, within 5 business days of receipt of written notice from the contractor.

3. Time for completion

The contractor must complete the work within the Completion Period which runs

from the date of this contract or, if any approval for the work is to be obtained, from

thedateofwrittennoticationofthatapprovalwhicheverislater.Thecontractorwill

be entitled to a reasonable extension of time in the event of delays to the work where

the cause of the delay is beyond the contractor’s control including but not limited

to, inclement weather, industrial disputes or variations to the work. The contractor

must take all reasonable steps to minimise any delay to the work. Any claim for an

extensionoftimemustbenotiedinwritingtotheownerwithin10businessdays.

4. Variations to work

The work including materials may be varied by written agreement between the

owner and the contractor. A notice describing the variation, the cost of the additional

or omitted work and any change to the Completion Period must be provided to the

owner, and the notice must then be signed and dated by both parties to constitute

acceptance. The price of extra work, which includes GST, will be added to the

Contract Price. The cost of omitted work will be deducted from the Contract Price. If

thevariedcontractpriceexceeds$20,000,acerticateofinsuranceundertheHome

Building Compensation Fund must be attached to the contract and the additional

requirements for contracts over $20,000 must be included in this contract or a new

contract entered into that complies with the requirements in the Home Building Act

1989 for contracts over $20,000.

5. Insurance of work and personal injury

Before the contractor commences any work under this contract or is given access to

the site, the contractor must have current insurance cover for:

(a) public liability insurance to cover liabilities to third parties for death or

personal injury or damage to property for an amount not less than $5 million

(b) workers’ compensation insurance to cover any employees (if requested the

contractor must provide the owner with proof that all such insurances have been

taken out and are current), and

and materials) for the full reinstatement and replacement cost.

6. Contractor’s indemnity in favour of owner

The contractor will indemnify the owner against any loss or liability for death, personal

injury or property damage arising out of the work under this contract, except to the

extent that the owner or, owner’s representative contributed to the loss or liability.

7. Damage to property

The contractor must make good any loss or damage to the work or property

of the owner caused by the contractor or the contractor’s employees, agents

or subcontractors. The owner must remove any furniture or personal goods

from the vicinity of the work to minimise the risk of damage.

8. Access for contractors

The owner must provide access for the contractor and any employee or

subcontractor of the contractor to carry out the work as required during work hours

allowed by relevant statutory authorities. The owner must remove any personal

property likely to impede the work.

9. Cleaning up

On completion of the work, the contractor must remove from the site all plant and

equipment and dispose of all rubbish, excavated material, vegetation, demolished

or dismantled structures and surplus material relating to the work. All demolished,

dismantled and surplus material will be the property of the contractor unless

otherwisespeciedinthedescriptionofwork.

10. Disputes

If the owner or contractor considers a dispute has arisen in relation to any matter

covered by this contract, that party must promptly give the other party written notice

of the items of dispute. If the dispute cannot be resolved the owner may notify Fair

Trading that a building dispute exists by either visiting www.fairtrading.nsw.gov.au

or ringing 13 32 20 and seek the assistance of NSW Fair Trading in resolving

the dispute.

11. Terminating contract

If the contractor becomes bankrupt or goes into liquidation, administration or is

otherwise without full capacity; fails to complete the work within the completion

period, or if no completion period is agreed, within a reasonable time; fails to remedy

defective work or replace faulty or unsuitable materials then the owner may, where

such default can be remedied, issue a written notice requiring the contractor to

remedy the default within 10 business days of receipt of the notice by the contractor

or within such other reasonable period as may be agreed. If the default is not

remedied within the 10 business days or other reasonable period as agreed, or is not

capable of being remedied, the owner may terminate the contract by written notice

to the contractor.

If the owner fails to make payment due under the contract or denies access

to the site to the contractor to prevent the work from proceeding, the contractor may

issue a written notice requiring the owner to remedy the default within 10 business

days of receipt of the notice by the owner. If the default is not remedied,

the contractor may terminate the contract by written notice to the owner.

12. Giving of notices

Any written notice required to be given under the contract or under the Home

Building Act 1989 may be served by:

(a) giving it to the party personally,

(b) leaving it at the party’s address shown in the contract, or

Contract conditions

Builders and tradespeople must give you a copy of

this guide before entering into a contract for residential

building work that costs more than $5,000. Read this

guide to help protect your rights, carry out your

responsibilities and support your building project.

Protecting consumers under home

building laws

NSW Fair Trading is the NSW Government

agency regulating residential building work (including

building or trade work on single dwellings, villas, houses

and home units) under the Home Building Act 1989.

What to consider before work starts

Licensing

Licensing requirements include:

●

tradespeople and builders carrying out residential

building work valued at more than $5,000 must be

licensed by NSW Fair Trading (check a

licence on the Fair Trading website or by calling 13

32 20)

●

regardless of the work's cost, a licence is always

required for specialist work (like plumbing, air

conditioning and refrigeration, electrical work and

gasfitting)

●

if the work requires more than one tradesperson, you

need a builder to manage the building project and

co-ordinate the tradespeople, such as plumbers,

painters and carpenters.

Home Building Compensation Scheme

The State Insurance Regulatory Authority (SIRA)

regulates home building compensation (HBC) cover in

NSW. HBC cover is required where work is worth more

than $20,000 (including labour and materials). The

builder or tradesperson must give you evidence of HBC

cover before they start work on your project or you pay

them any money, including a deposit. For more

information or to check the validity of your

cover, visit sira.nsw.gov.au or call 13 10 50.

Approvals

To help your building project go smoothly:

●

check with your local council or an accredited private

certifier on approvals your building work needs

●

engage a building certifier. This is your responsibility,

not the builder´s.

Contracts and payments

All contracts must be in writing. The two main

contract types are:

●

fixed price or lump sum - where the builder or

tradesperson agrees upfront to a fixed amount for

the whole job. Unforeseen changes during

construction may affect the final cost

●

cost plus contract - there is no guaranteed final

cost for the job (often this contract is used

where the project's nature prevents the final cost

from being calculated). The consumer repays the

builder for verified direct and indirect costs and fees

at regular intervals. It is good practice for the builder

to give a non-binding estimate before starting, and

track costs with you against the project's budgeted

estimate.

Residential building work worth less than $20,000 must

be done under a 'small jobs' contract. The written

contract must be dated and signed by, or on behalf of,

each party. It may specify that work be paid for at regular

intervals. It must contain:

●

the parties' names, including the name of the holder

of the contractor licence as shown on the contractor

licence

●

the number of the contractor licence

●

a description of the work

●

any plans or specifications for the work, and

●

the contract price, if known.

Residential building work worth more than $20,000

requires a full home building contract. As well as all of

the requirements of the 'small jobs' contract, it must

Consumer Building Guide

Mandatory information for consumers

June 2018

include other comprehensive information such as the

details of the statutory warranties the builder must

provide, the cost of any applicable HBC cover and the

contract price or warning that the contract price is not

known. Find a complete list of contract requirements

on our website.

All contracts over $20,000 in value must have a progress

payment schedule. Progress payments must match the

work carried out and, for cost plus contracts, be

supported by receipts or other verifying documents.

Any change you need to make to a contract is a

'variation'. Variations must be in writing and be signed by

both parties to the contract. Almost all will impact the

contract price.

The maximum deposit you can be asked to pay before

work starts is 10%.

Common traps and tricks

Beware of:

●

an extremely low quote compared with others. This

may indicate the job's quality is being compromised,

or that the builder may not fully understand what is

required

●

`sales pitches´ putting pressure on you to sign a

contract quickly to avoid a price increase

●

a builder who recommends you get an owner-builder

permit while they organise all the building work. The

builder may be trying to avoid responsibility and may

not have the right kind of licence or HBC cover.

When things go wrong

Statutory warranties

Builders and tradespeople must guarantee that their work

is fit-for-purpose, performed diligently and delivered in a

reasonable timeframe, in line with the contract. Unless

otherwise specified, materials should be new and

appropriately used. These warranties are time-limited:

legal proceedings to enforce them must be

commenced within 6 years for major defects and 2 years

for all other defects. There is another 6 months for both

warranty periods if the defect only became apparent after

18 months or 5 and a half years. Find out more about

these warranties on the Fair Trading website.

Resolving a dispute with your builder or

tradesperson

These steps can help you resolve a dispute:

●

you must notify your builder or tradesperson and

discuss concerns as soon as you become aware of a

problem. Follow up with an email or letter

●

understand acceptable work standards by

downloading the Guide to Standards and

Tolerances from our website

●

contact Fair Trading for free dispute resolution if

you and your builder or tradesperson are unable to

resolve the dispute

●

lodge a claim with the NSW Civil and

Administrative Tribunal (NCAT) if you remain

unsatisfied with the dispute resolution outcome

●

protect your rights under the HBC Scheme: contact

your insurer or provider as soon as you become

aware of defective or incomplete work.

Home building compensation disputes

For help resolving disputes with a HBC insurer or

provider, visit the SIRA website sira.nsw.gov.au or call 13

10 50.

More information

Visit the Fair Trading website to:

●

learn more on your rights and responsibilities and the

statutory warranties

●

do an online licence check to verify a builder or

tradesperson´s licence details

●

find out about dispute resolution

●

download free home building contracts

●

subscribe to enews.

June 2018

www.fairtrading.nsw.gov.au

Fair Trading enquiries 13 32 20

TTY 1300 723 404

Language assistance 13 14 50

This fact sheet must not be relied on as

legal advice. For more information about

this topic, refer to the appropriate

legislation.

We encourage the reuse of this information under the Creative Commons Attribution 4.0

licence. See NSW Fair Trading's copyright policy at www.fairtrading.nsw.gov.au or email

publications@finance.nsw.gov.au

Contract: Contractor’s copy

Owner

Name(s)

Address

Home phone Other phone

Fax Email

Contractor

Name (as shown on Contractor licence)

Licence number Expiry date

Category of work shown on licence

Address (as shown on Contractor licence)

Work phone Other phone

Fax Email

Australian Company Number (if applicable)

Address where work is to be done (site)

Completion period

The completion period

for the work will be

Description of work/materials

Any plans or specications that are part of the contract

must be attached and should be signed and dated by

both parties.

Contract price

(including GST)

Important:You can only be asked to pay a maximum

deposit of 10% of the contract price before any work

is done.

Note: This work is warranted for 6 years from

completion for major defects and 2 years for all other

defects as required under the Home Building Act 1989.

No provisions in this contract can restrict or remove the

statutory warranties applying to this contract under the

Home Building Act 1989. See the Consumer building

guide at the end of this contract for more details.

Warning: The contract price may vary in accordance with

contract conditions, for example as the result of variations.

A signed copy of the contract must be given to the owner

within 5 clear business days after the contract is entered

into. This is a requirement under the Home Building

Act 1989.

/ /

Contractor’s

signature

Date

/ /

Acceptance of contract

Owner’s

signature