The Government has released draft regulations to the Home Building Amendment Act 2014 which provide for operation of that Act to commence on 1 December 2014.

A number of organisations made submissions to the Government in relation to those regulations and a final start date has not yet been confirmed. Anyone with a defect claim:

• which is not yet the subject of litigation or an insurance  claim
• where more than 2 years has elapsed since the date of completion of the building work; and
• relying on the defects being structural within the terms of the existing regulations

should immediately seek legal advice to confirm whether those defects will be covered as a major building defect under the new legislation.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

What should you be aware of?

On 9 May 2014 the Home Building Amendment Bill 2014 was introduced to the Legislative Assembly of the New South Wales Parliament. It passed that House on 14 May 2014.

The object of the Bill is to amend the Home Building Act 1989 (“HBA”) in connection with matters including:

• Penalties for unlicensed work;
• Contracts to do residential building work or specialist work;
• Contracts to supply kit homes;
• Statutory warranties implied into contracts;
• Provisions relating to contractor licences, supervisor certificates and tradesperson certificates including broadening the grounds for disqualification;
• Notification of insolvency, winding-up or de-registration of licence holders;
• Owner building;
• Resolution of building disputes;
• Disciplinary proceedings;
• Home warranty insurance;
• Owner builder kit homes and requirements for obtaining contractor licences;
• Other minor consequential or ancillary matters.

The HBA is an act with which strata title lawyers need to be familiar. Building defects are one of the largest areas of complaint from those living in strata schemes in this state. Unfortunately for those practicing in the area, the HBA is one of the most frequently amended pieces of legislation in New South Wales.

The emphasis of this paper is on the amendment of those areas of the HBA which are most commonly used by strata lawyers. This paper is not designed as a general overview of the HBA and the amendments and assumes a basic knowledge of the HBA from a strata perspective.

Click here to download the full paper Home Building Act Amendment

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

This building defect case highlights the uncertainty of relying on the date of issue of an occupation certificate for determining the time for bringing action and some of the appeal limitations under the Civil and Administrative Tribunal Act 2013 (NCAT).

For the full article please click here – HBA Warranty Reliance on Occupation Certificates

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

The Supreme Court found that any objection to a payment claim coming under the provisions of the Building and Construction Industry Security of Payment Act 1999 must be put into a payment schedule under that Act and served on the party making the payment claim.

To download the full article please click here Building and Security Payment Plan Objections

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

The Building and Construction Industry Security Of Payment Amendment Act 2013 is proclaimed to commence on 21 April 2014.

The Building and Construction Industry Security of Payment Act 1999 was amended by the Building and Construction Industry Security of Payment Amendment Act 2013. The amendments will not apply to construction contracts entered into before 21 April 2014. The Act applies to all construction contracts entered into by owners corporations for work on the common property.

The principal changes which affect owners corporations are as follows:

• Owners corporations will now be a principal under the main contract with the head contractor.
  A progress payment is to be made by a principal to a head contractor 15 business days after a payment claim is made or such earlier date as may be provided by the contract.
• It is no longer possible to contractually extend the period for the making of the payment.
  The contractor is no longer required to endorse a payment claim made under the Act in any way. This means that you must treat every invoice or payment claim under a construction contract or any construction arrangement as being subject to the Act.
• You will need to immediately enquire from your principal on receipt of any invoice for construction work, whether there is a dispute in relation to payment and, if there is, ensure that a payment schedule is prepared and served on the contractor within 15 business days of receipt of the invoice. Failure to do so will remove any right to withhold any part of the payment claim.
• Head contractors must now serve a supporting statutory statement with a payment claim which must include a declaration to the effect that all subcontractors have been paid.
• Failure to serve a supporting statement leaves the head contractor liable to a fine up to $22,000.00 but does not invalidate the payment claim.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Surveyors are not perfect. They can make mistakes when drawing strata plans.

But what happens once a strata plan containing errors is registered? Are the errors able to be corrected? A recent Supreme Court case confirms that the answer is “yes”.

Click here for the full article – Supreme Court Corrects Strata Plan Error

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.