Posted by NSW State Insurance Regulatory Authority
on 2 July 2018
From 1 July 2018, builders and tradespeople must disclose the cost of HBCF cover in their contracts with a homeowner or owner builder. The 'cost of cover' item must be the total amount of money the builder or tradesperson had to pay to obtain the HBCF cover (including any brokerage costs, fees and taxes).
If the contract for the residential building work will be signed before the HBCF cover has been obtained, the contract must include a reasonable estimate of the likely cost of the HBCF cover.
These new requirements are a result of amendments to the Home Building Act 1989 and the Home Building Regulation 2014, that commenced on 1 January 2018.
To support this change, the we are currently amending the LNA Landscape Works Agreement Contract - Work Over $20K. The Consumer Building Guide has also been updated.
Fair Trading will take an educational approach to compliance for a transitional period of six months, and has published a Statement of regulatory intent to explain these arrangements.
The transitional arrangement does not affect contractors' obligations to insure their work.
Building contractors must acquire home building compensation fund insurance and must give the other party to the contract a certificate of insurance before doing any residential building work that must be insured, and before they demand or receive a payment under a contract to do such work. Fair Trading will continue to enforce these obligations during the transition period.
If you have any further questions please do not hesitate to contact the LNA Team on (02) 9630 4844 or email us at firstname.lastname@example.org