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ARTICLE · 18 MARCH 2015

Changes to the NSW Home Building Act - How it affects you!

The changes are substantial and it is prudent for building contracts to be aligned with the concepts in the legislation.

AustraliaReal Estate and Construction

What are the Key Changes?

Statutory Warranty Regime

  • The Act previously required work to be performed "in a proper and workmanlike manner'"– the legislation now requires that work is to be "done with due care and skill". Terms in home-building contracts need to reflect this change.
  • The term "structural defect" is replaced with the concept "major defect" in order to cover significant defects that may not be structural in nature: in other words, the range of defects covered by the former "structural defect" enforcement regime has broadened generally. HOWEVER the new concept does not cover many defects, such as wall cracking, there were previously considered to be structural defects.

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