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PLUMBING CONNECTION
WINTER 2016 51
There are large penalties for ignoring this requirement – 100
penalty units currently equates to $15,167, in excess of three
times the minimum amount of a major domestic building
contract. This amount can increase from year to year.
Such a contract is required to have certain prescribed
details which are set out in the Act. The Act should be
consulted for these details, failing which, professional
advice is recommended.
One of the most important consequences of the Act
applying is that work completed must meet certain
minimum standards as far as quality of workmanship,
materials, suitability and fitness for stated purpose are
concerned.
These standards cannot be given or taken away.
Inspectors have power to examine and inspect a building
site and building works to ensure builders and or ‘subbies’
comply with the Act and with other applicable laws.
In the event of the Act applying, and thus in a case
where a written contract must be entered into, the dispute
provisions of the Act apply so that in the event of a dispute
arising, that dispute can be conciliated or go the state’s Civil
and Administrative Tribunal.
KNOW YOUR ACT
The relative simplicity of the above statements can be
misleading as there are often cases ‘at the margins’ where
it can be difficult for a builder to know for certain whether
he or she needs to enter into a written domestic building
contract. Having said that, in most cases it is fairly clear.
As stated above, there can be some pretty serious
consequences by builders for non-compliance with these
and other parts of the Domestic Building Contracts Act. In
cases of doubt, it is best to seek professional advice or seek
the assistance of a relevant professional association, such
as the HIA.
Contact:
Paul Cott LLB (Hons), Grad Dip Legal Practice, LLM is a
Senior Associate Lawyer. Working in commercial litigation
for a number of years has seen Paul amass a wealth of
knowledge and experience in building and construction
litigation which he is willing to share. Paul is also a member
of the Building Dispute Practitioners Society.