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The Home Building Contracts Act 1991 (the HBC Act) provides protection for home owners and persons undertaking home building work.
Part 2 of the HBC Act applies to fixed price contracts for ‘home building work’ valued between $7,500 and $500,000.
Home building work includes:
  • constructing a new dwelling;
  • carrying out additions to an existing dwelling;
  • placing a transportable dwelling on land, or
  • carrying out any associated work in conjunction with a dwelling, ie. installing a swimming pool, cabinetry, erecting a garage, shed or pergola, or performing landscaping.
The main provisions include:
          A contract must be in writing, containing all the terms, conditions and provisions of the agreement and be dated and signed by both parties.  
          A contract cannot provide for a payment that exceeds 6.5% of the total cost of the contract prior to the commencement of work. Once work has started, any progress payment must only be for work actually performed or materials already supplied.
          Any contract variation must be signed and dated by both parties, with a copy given to the owner before the variation work commences.

Further information about the requirements of the HBC Act is available from the Builders’ Registration Board


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