Residential Building Regulation Update
On 1 September 2020 the NSW Government introduced changes to owner-occupier contract that will take effect from 1 March 2021. In the intervening period, owner-occupiers considering entering into home building contracts are advised to familiarise themselves with the incoming provisions and the new legal responsibilities and obligations that will apply to them from 21 March 2020 onwards.
Owner-occupier contracts are where the owner of a home is seeking to improve or renovate their property, and they enter into a contract with a tradesperson/builder to do so.
The changes will enhance the ability of tradespeople/builders in owner-occupier contracts to enforce payments for work they perform under these contracts. Under the current regime, tradespeople/builders are unable to apply for adjudication in the event of a payment dispute under home-builder contracts.
Beginning on 1 March 2021, tradespeople/builders subject to home-builder contracts will be able to serve payment claims upon owner-occupiers and will have a broader range of avenues available to them should an owner-occupier be unwilling or unable to satisfy the tradespeople and builder’s claim. In addition, if an owner-occupier has a dispute in relation to a payment claim, they must provide the tradespeople/builder with a payment schedule within 10 days of being served with the claim or potentially lose their right to adjudication.
With important ramifications for both owner-occupiers and tradespeople/builders, the amendments to the Home Building Act (1989) are expected to herald substantial changes to the relationship between owner-occupiers and tradespeople/builders in home construction contracts.
