Changes to the Home Building Act are now in force

As of 1 March 2015, major changes to the Home Building Act 1989 (NSW) ("the Act") came into force. Generally, residential building work involves the following:

1. The construction of a dwelling, or
2. Making of alterations or additions to a dwelling, or
3. Repairing, renovation, decoration or protective treatment of a dwelling.

Summary of the changes

Some of the key changes imposed under the amended legislation are as follows:

1. Statutory warranties will be implied into subcontracts.
2. Under the new legislation a more detailed contract is required for any building work exceeding $20,000.00. This is an increase to the previous threshold of $5,000.00.
3. The cap on deposits that a builder may request for work over $20,000.00 has been increased from 5% to 10%.