84 / 116
8 4
PLUMBING CONNECTION Summer 2017
STANDARDS AND QUALITY OF
WORKMANSHIP AND CERTIFICATION
A
ll states in Australia have to
some extent standardised laws
in respect to the standard that
contractors (and builders) are required
to uphold for their work. Victoria, New
South Wales and Queensland law is
similar whereas the other states and
territories have laws that are broadly
the same in effect and ideas.
Building standards apply whether or
not they are written specifically or are
even referred to in the contract. The
important thing to remember is that
there are time limits beyond which, if
defects begin to be revealed, the builder
or tradesman is ‘off the hook’ as far as
potential legal liability is concerned.
That time period is often ten years from
the date the Occupancy Certificate is
issued. This time period also applies
when the legal liability risk ‘transfers
over’ to subsequent purchasers of the
property.
These laws and standards are
designed to protect consumers in
relation to all types of products and
services and provide some protection
to ensure that the consumer gets what
they pay for.
Warranty insurance is applicable
to building projects more than
$16,000 in Victoria and only applies to
protect an owner in certain specified
circumstances.
Those circumstances are where
the builder dies, the building company
becomes externally administered
by a liquidator, or where the builder
goes missing and cannot be found. It
is a common error to think that this
‘warranty insurance’ applies generally
and gives protection to the owner
whenever there are defects and/or
incomplete works.
The first implied warranty is that the
works are performed with reasonable
care and skill. That is not a duty to
guarantee that the works are done
or the goods which are provided will
be completely defect-free but that
they are performed (or provided) with
reasonable care and skill, appropriate
to the contractor’s skills, qualifications
and experience. The standard required
is adaptable to all the circumstances.
Often, however, the law makes a
distinction as to the possibility of a
remedy (such as the right to a refund
of money paid, compensation or
rectification of the defects) for the
consumer or home owner, on the basis
of whether the defect(s) are major or
minor. This standard is often called
the duty to do work in a ‘proper and
workmanlike manner.’
The second implied warranty
which will apply irrespective of the
intentions of the contractor and the
owner is the duty to follow the plans
and specifications of the contract. Not
much needs to be said about this one
expect to say that it is a reflection of
the concept that a consumer is entitled
to receive what they paid for.
The next aim for a contractor is to
provide materials or products which
are of an acceptable quality. As with the
standard of due care and skill, whether
you have reached the level of ‘due’ care
or skill or ‘acceptable quality’ varies
with circumstances, but the products
or materials actually have to be fit for
purpose. In some instances, the law will
require that the materials provided be
new.
$V D EXLOGHU RU FRQWUDFWRU SURYLGLQJ TXDOLW\ ZRUNPDQVKLS DQG SURGXFWV ¿W IRU SXUSRVH DUH EDFNHG E\
laws and standards across the country.
Paul Cott
outlines the laws involved.
LEGAL EAGLE