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This is a Bill, not an Act. For current law, see the Acts databases.
Home Building Amendment Bill 2011
No , 2011
A Bill for
An Act to amend the Home Building Act 1989 to make further provision in respect
of home warranty insurance, statutory warranties, developers, building disputes and
administrative arrangements; to amend the Civil Liability Act 2002 in relation to
proportionate liability; and for other purposes.
Clause 1 Home Building Amendment Bill 2011
The Legislature of New South Wales enacts: 1
1 Name of Act 2
This Act is the Home Building Amendment Act 2011. 3
2 Commencement 4
(1) This Act commences on the date of assent to this Act, except as 5
provided by subsection (2). 6
(2) Schedule 1 [6]-[11], [13] and [17]-[24] and Schedule 3 [1]-[8] and 7
[11]-[15] commence on a day or days to be appointed by proclamation. 8
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Home Building Amendment Bill 2011
Amendment of Home Building Act 1989 No 147 Schedule 1
Schedule 1 Amendment of Home Building Act 1989 1
No 147 2
[1] Section 3 Definitions 3
Insert in alphabetical order in section 3 (1): 4
developer--see section 3A. 5
[2] Section 3A Application of provisions to developers 6
Omit "is a developer who does the work" from section 3A (1). 7
Insert instead "is a developer in relation to that residential building work". 8
[3] Section 3A (1A) 9
Insert after section 3A (1): 10
(1A) Residential building work done on land in the circumstances set 11
out in subsection (2) is, for the purpose of determining who is a 12
developer in relation to the work, deemed to have been done on 13
behalf of the owner of the land (in addition to any person on 14
whose behalf the work was actually done). 15
Note. This makes the owner of the land a developer even if the work is 16
actually done on behalf of another person (for example, on behalf of a 17
party to a joint venture agreement with the owner for the development of 18
the land). The other person on whose behalf the work is actually done is 19
also a developer in relation to the work. 20
[4] Section 3B 21
Insert after section 3A: 22
3B Date of completion of residential building work 23
(1) The completion of residential building work occurs on the date 24
that the work is complete within the meaning of the contract 25
under which the work was done. 26
(2) If the contract does not provide for when work is complete (or 27
there is no contract), the completion of residential building work 28
occurs on practical completion of the work, which is when the 29
work is completed except for any omissions or defects that do not 30
prevent the work from being reasonably capable of being used for 31
its intended purpose. 32
(3) It is to be presumed (unless an earlier date for practical 33
completion can be established) that practical completion of 34
residential building work occurred on the earliest of whichever of 35
the following dates can be established for the work: 36
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Home Building Amendment Bill 2011
Schedule 1 Amendment of Home Building Act 1989 No 147
(a) the date on which the contractor handed over possession of 1
the work to the owner, 2
(b) the date on which the contractor last attended the site to 3
carry out work (other than work to remedy any defect that 4
does not affect practical completion), 5
(c) the date of issue of an occupation certificate under the 6
Environmental Planning and Assessment Act 1979 that 7
authorises commencement of the use or occupation of the 8
work, 9
(d) (in the case of owner-builder work) the date that is 10
18 months after the issue of the owner-builder permit for 11
the work. 12
(4) If residential building work comprises the construction of 2 or 13
more buildings each of which is reasonably capable of being used 14
and occupied separately, practical completion of the individual 15
buildings can occur at different times (so that practical 16
completion of any one building does not require practical 17
completion of all the buildings). 18
(5) This section applies for the purposes of determining when 19
completion of residential building work occurs for the purposes 20
of any provision of this Act, the regulations or a contract of home 21
warranty insurance. 22
[5] Section 4 Unlicensed contracting 23
Omit section 4 (4). Insert instead: 24
(4) A developer in relation to residential building work must not 25
contract with another person for the other person to do that 26
residential building work on behalf of the developer unless the 27
other person is the holder of a contractor licence authorising the 28
other person to do work of that kind. 29
Maximum penalty: 1,000 penalty units in the case of a 30
corporation and 200 penalty units in any other case. 31
[6] Section 6 Application of requirements for contracts 32
Omit "sections 7, 7A and 7B" wherever occurring in section 6 (2). 33
Insert instead "sections 7, 7AAA, 7A and 7B". 34
[7] Section 7 Form of contracts 35
Insert before section 7 (1): 36
(1A) This section applies to a contract only if the contract price 37
exceeds the prescribed amount or (if the contract price is not 38
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Home Building Amendment Bill 2011
Amendment of Home Building Act 1989 No 147 Schedule 1
known) the reasonable market cost of the labour and materials 1
involved exceeds the prescribed amount. The prescribed amount 2
is the amount prescribed by the regulations for the purposes of 3
this section and is inclusive of GST. 4
[8] Section 7AAA 5
Insert after section 7: 6
7AAA Form of contracts--small jobs 7
(1) This section applies to a contract only if the contract is not one to 8
which section 7 applies and the contract price exceeds the 9
prescribed amount or (if the contract price is not known) the 10
reasonable market cost of the labour and materials involved 11
exceeds the prescribed amount. The prescribed amount is the 12
amount prescribed by the regulations for the purposes of this 13
section and is inclusive of GST. 14
(2) A contract must be in writing and be dated and signed by or on 15
behalf of each of the parties to it. 16
(3) A contract must contain: 17
(a) the names of the parties, including the name of the holder 18
of the contractor licence shown on the contractor licence, 19
and 20
(b) the number of the contractor licence, and 21
(c) a description of the work to which the contract relates, and 22
(d) any plans and specifications for the work, and 23
(e) the contract price if known. 24
(4) The contract must comply with any requirements prescribed by 25
the regulations for the purposes of a contract to which this section 26
applies. 27
[9] Section 7AA Consumer information 28
Insert before section 7AA (1): 29
(1A) This section applies only to contracts to which section 7 applies. 30
[10] Section 7A Offence 31
Insert "or 7AAA" after "section 7". 32
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Home Building Amendment Bill 2011
Schedule 1 Amendment of Home Building Act 1989 No 147
[11] Section 7BA Cooling-off period: person may rescind a contract for 1
residential building work within 5 days without penalty 2
Insert before section 7BA (1): 3
(1A) This section applies to a contract only if the contract price 4
exceeds the prescribed amount or (if the contract price is not 5
known) the reasonable market cost of the labour and materials 6
involved exceeds the prescribed amount. The prescribed amount 7
is the amount prescribed by the regulations for the purposes of 8
this section and is inclusive of GST. 9
[12] Section 18C Warranties as to work by others 10
Insert at the end of section 18C: 11
(2) For the purposes of this section, residential building work done 12
on behalf of a developer is taken to have been done by the 13
developer. 14
[13] Section 18E Proceedings for breach of warranties 15
Omit section 18E (1). Insert instead: 16
(1) Proceedings for a breach of a statutory warranty must be 17
commenced in accordance with the following provisions: 18
(a) proceedings must be commenced before the end of the 19
warranty period for the breach, 20
(b) the warranty period is 6 years for a breach that results in a 21
structural defect (as defined in the regulations) or 2 years 22
in any other case, 23
(c) the warranty period starts on completion of the work to 24
which it relates (but this does not prevent proceedings 25
from being commenced before completion of the work), 26
(d) if the work is not completed, the warranty period starts on: 27
(i) the date the contract is terminated, or 28
(ii) if the contract is not terminated--the date on which 29
work under the contract ceased, or 30
(iii) if the contract is not terminated and work under the 31
contract was not commenced--the date of the 32
contract, 33
(e) if the breach of warranty becomes apparent within the last 34
6 months of the warranty period, proceedings may be 35
commenced within a further 6 months after the end of the 36
warranty period, 37
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Home Building Amendment Bill 2011
Amendment of Home Building Act 1989 No 147 Schedule 1
(f) a breach of warranty becomes apparent when any person 1
entitled to the benefit of the warranty first becomes aware 2
(or ought reasonably to have become aware) of the breach. 3
[14] Section 48C Notification of building dispute 4
Insert after section 48C (1): 5
(1A) A contractor may notify the Director-General, in such manner as 6
the Director-General may approve, that the contractor has a 7
dispute with a person with respect to residential building work or 8
specialist work done by the contractor, not being a dispute with 9
another contractor. The regulations may impose restrictions on 10
the disputes that can be notified under this subsection. 11
[15] Section 48D Investigation of dispute 12
Omit "the complainant and the contractor" from section 48D (2). 13
Insert instead "the complainant and the person with whom the complainant is 14
in dispute". 15
[16] Section 90 Definitions 16
Omit the definition of developer from section 90 (1). 17
[17] Section 92 Contract work must be insured 18
Omit section 92 (3). Insert instead: 19
(3) This section does not apply if the contract price does not exceed 20
the amount prescribed by the regulations for the purposes of this 21
section or (if the contract price is not known) the reasonable 22
market cost of the labour and materials involved does not exceed 23
that amount. 24
[18] Section 92 (5) 25
Omit the subsection. 26
[19] Section 95 Owner-builder insurance 27
Omit section 95 (3) (b). Insert instead: 28
(b) if the reasonable market cost of the labour and materials 29
involved does not exceed the amount prescribed by the 30
regulations for the purposes of this section, or 31
[20] Section 95 (5) 32
Omit the subsection. 33
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Home Building Amendment Bill 2011
Schedule 1 Amendment of Home Building Act 1989 No 147
[21] Section 96 Insurance in relation to residential building work not carried 1
out under contract 2
Omit section 96 (3) (e). Insert instead: 3
(e) the reasonable market cost of the labour and materials 4
involved does not exceed the amount prescribed by the 5
regulations for the purposes of this section. 6
[22] Section 96 (4) 7
Omit the subsection. 8
[23] Section 102 General requirements for insurance 9
Omit section 102 (3). Insert instead: 10
(3) The contract of insurance must provide for cover of not less than 11
the amount prescribed by the regulations for the purposes of this 12
subsection. 13
[24] Section 102 (6) 14
Omit the subsection. Insert instead: 15
(6) A contract of insurance may provide that the insurer is not liable 16
for such amount of each claim as is specified in the contract. The 17
amount specified is not to exceed the amount prescribed by the 18
regulations as the maximum excess. 19
[25] Section 103B Period of cover 20
Omit "6 years after the completion of the work, or the end of the contract 21
relating to the work, whichever is the later" from section 103B (2) (a). 22
Insert instead "6 years after completion of the work". 23
[26] Section 103B (2) (b) 24
Omit "2 years after the completion of the work, or the end of the contract 25
relating to the work, whichever is the later". 26
Insert instead "2 years after completion of the work". 27
[27] Sections 103BA-103BC 28
Omit section 103BA. Insert instead: 29
103BA Time limits for policies issued between 1.5.1997 and 30.6.2002 30
(1) A contract of home warranty insurance entered into on or after 31
1 May 1997 and before 1 July 2002 provides insurance cover in 32
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Home Building Amendment Bill 2011
Amendment of Home Building Act 1989 No 147 Schedule 1
respect of loss only if a claim in respect of the loss is made to the 1
insurer during the period of insurance. 2
(2) A loss that becomes apparent in the last 6 months of the period of 3
insurance has an extended claim period, which permits a claim in 4
respect of the loss to be made within 6 months after the loss 5
becomes apparent. There is no extended claim period for a loss 6
that arises from non-completion of work. 7
(3) For the purposes of this section and section 103BB, a loss 8
becomes apparent when a beneficiary under the contract of 9
insurance first becomes aware (or ought reasonably to have 10
become aware) of the loss. 11
(4) In this section and sections 103BB and 103BC: 12
loss means loss indemnified by a contract of home warranty 13
insurance. 14
period of insurance means the period for which a contract of 15
home warranty insurance provides cover. 16
103BB Time limits for policies issued from 1.7.2002 17
(1) A contract of home warranty insurance entered into on or after 18
1 July 2002 provides insurance cover in respect of loss only if a 19
claim in respect of the loss is made to the insurer during the 20
period of insurance. 21
Note. Subsection (1) is the general rule but there are exceptions to this 22
general rule, as provided by this section. 23
(2) A loss that becomes apparent in the last 6 months of the period of 24
insurance has an extended claim period, which permits a claim in 25
respect of the loss to be made within 6 months after the loss 26
becomes apparent. There is no extended claim period for a loss 27
that arises from non-completion of work. 28
(3) When a loss becomes apparent during the period of insurance but 29
a claim cannot be made during that period because an insured 30
event has not occurred, a claim can be made after the period of 31
insurance (as a delayed claim) but only if: 32
(a) the loss was properly notified to the insurer during the 33
period of insurance (or within 6 months after the loss 34
became apparent in the case of a loss that became apparent 35
in the last 6 months of the period of insurance), and 36
(b) the beneficiary under the contract of insurance making the 37
claim diligently pursued the enforcement of the statutory 38
warranty concerned after the loss became apparent. 39
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Home Building Amendment Bill 2011
Schedule 1 Amendment of Home Building Act 1989 No 147
(4) A delayed claim can also be made when the insured event occurs 1
in the last 6 months of the period of insurance (as if the insured 2
event did not occur until after the period of insurance) subject to 3
compliance with the other requirements of this section for a 4
delayed claim. 5
(5) A delayed claim cannot be made for a loss that arises from 6
non-completion of work. 7
(6) The regulations can make provision for or with respect to what 8
constitutes or does not constitute diligent pursuit of the 9
enforcement of a statutory warranty for the purposes of this 10
section. 11
(7) A loss is properly notified to an insurer only if the insurer has 12
been given notice in writing of the loss and the notice provides 13
such information as may be reasonably necessary to put the 14
insurer on notice as to the nature and circumstances of the loss. 15
The regulations can make provision for or with respect to the 16
form and content of such a notice. 17
103BC 10-year "long stop" limit on claims under existing policies 18
(1) Despite any other provision of this Act, a contract of home 19
warranty insurance entered into before 1 July 2010 does not in 20
any circumstances provide insurance cover in respect of loss 21
unless a claim in respect of the loss is made to the insurer within 22
10 years after the work insured was completed. 23
Note. Section 3B provides for the date of completion of residential 24
building work. 25
(2) This section does not operate to extend any period of insurance. 26
[28] Section 103F Interpretation 27
Omit the definition of developer from section 103F (1). 28
[29] Section 121B 29
Insert after section 121A: 30
121B Information sharing with Self Insurance Corporation 31
(1) A person engaged in the administration of this Act may disclose 32
to the Self Insurance Corporation or a member of staff of the 33
Corporation information obtained in the course of the 34
administration or execution of this Act if the disclosure is for the 35
purpose of assisting the Self Insurance Corporation to exercise its 36
functions under this Act. 37
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Home Building Amendment Bill 2011
Amendment of Home Building Act 1989 No 147 Schedule 1
(2) The Self Insurance Corporation or any member of staff of the 1
Corporation may disclose to a person engaged in the 2
administration of this Act information obtained in connection 3
with the exercise of the functions of the Corporation under this 4
Act if the disclosure is for the purpose of assisting in the 5
administration or execution of this Act. 6
(3) Information may be disclosed under this section by giving access 7
to any record of the information. 8
(4) A reference in this section to the functions of the Self Insurance 9
Corporation under this Act includes the functions of the 10
Corporation under section 8A (Specific functions in relation to 11
home warranty insurance) of the NSW Self Insurance 12
Corporation Act 2004. 13
[30] Schedule 4 Savings and transitional provisions 14
Insert at the end of clause 2 (1): 15
Home Building Amendment Act 2011, but only to the extent that 16
it amends this Act 17
[31] Schedule 4 18
Insert at the end of the Schedule: 19
Part 19 Provisions consequent on enactment of 20
Home Building Amendment Act 2011 21
104 Definition 22
In this Part: 23
amending Act means the Home Building Amendment Act 2011. 24
105 Application of Part 25
(1) This Part prevails to the extent of any inconsistency with any 26
other provision of this Schedule. 27
(2) Regulations made under clause 2 of this Schedule have effect 28
despite any provision of this Part. 29
106 Purpose and operation of amendments 30
The amendments made by the amending Act are made for the 31
purpose of the avoidance of doubt and accordingly (except as 32
otherwise provided by this Part) those amendments extend to: 33
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Home Building Amendment Bill 2011
Schedule 1 Amendment of Home Building Act 1989 No 147
(a) residential building work commenced or completed before 1
the commencement of the amendment, and 2
(b) a contract of insurance entered into before the 3
commencement of the amendment, and 4
(c) a loss or liability that arose before the commencement of 5
the amendment, and 6
(d) the notification of a loss before the commencement of the 7
amendment. 8
107 Legal proceedings not affected 9
An amendment made by the amending Act does not (despite any 10
other provision of this Part) extend to or otherwise affect any 11
decision of a court or tribunal in proceedings commenced in the 12
court or tribunal before the commencement of the amendment 13
(whether the decision is made before or after that 14
commencement). 15
108 Thresholds for contract requirements 16
An amendment made by the amending Act to Part 2 of this Act 17
(or to the Home Building Regulation 2004, to the extent that it 18
relates to an amendment to that Part) does not apply in respect of 19
a contract for residential building work entered into before the 20
commencement of the amendment. 21
109 Proceedings for breach of statutory warranties 22
The amendment made to section 18E by the amending Act does 23
not apply in respect of a contract for residential building work 24
entered into before the commencement of the amendment. 25
110 Insurance thresholds 26
(1) The amendment made by the amending Act to section 92 (and to 27
clause 70 of the Home Building Regulation 2004, to the extent 28
that it relates to the amendment to section 92) does not apply in 29
respect of a contract for residential building work entered into 30
before the commencement of the amendment. 31
(2) The amendment made by the amending Act to section 95 (and to 32
clause 70 of the Home Building Regulation 2004, to the extent 33
that it relates to the amendment to section 95) does not apply in 34
respect of a contract for the sale of land entered into before the 35
commencement of the amendment. 36
(3) The amendment made by the amending Act to section 96 (and to 37
clause 70 of the Home Building Regulation 2004, to the extent 38
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Home Building Amendment Bill 2011
Amendment of Home Building Act 1989 No 147 Schedule 1
that it relates to the amendment to section 96) does not apply to 1
residential building work done before the commencement of the 2
amendment. 3
111 Minimum insurance cover 4
An amendment made by the amending Act to section 102 (3) or 5
clause 60 or 69 of the Home Building Regulation 2004 does not 6
apply in respect of a contract of insurance entered into before the 7
commencement of the amendment. 8
112 Excess for home warranty insurance claims 9
The amendments made by the amending Act to substitute 10
section 102 (6) and insert clause 18 of the Home Building 11
Regulation 2004 do not apply in respect of a contract of insurance 12
entered into before the commencement of the amendments. 13
113 Pending claims not affected by new time limits 14
Sections 103BA-103BC (as inserted by the amending Act) do 15
not apply to a loss in respect of which a claim was made under a 16
policy of insurance before the commencement of the section 17
concerned, whether or not the claim was finalised before that 18
commencement. 19
114 Period of grace for claims where loss already properly notified 20
(1) The requirement under section 103BA (as inserted by the 21
amending Act) that a claim in respect of a loss be made during the 22
required claim period is satisfied in the case of a loss for which 23
no claim was made during the required claim period but that was 24
properly notified to the insurer during the required claim period 25
and before the commencement of that section if a claim in respect 26
of the loss is made within 6 months after the commencement of 27
that section. 28
(2) The required claim period is the period of insurance or the period 29
of 6 months after the loss became apparent in the case of a loss 30
that became apparent in the last 6 months of the period of 31
insurance. 32
(3) In this clause, properly notified has the same meaning as in 33
section 103BB. 34
115 Period of grace for proper notification of losses 35
(1) The requirement under section 103BB (3) (a) that a loss be 36
properly notified to an insurer during the required notification 37
period is satisfied in the case of a loss that was notified (but not 38
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Home Building Amendment Bill 2011
Schedule 1 Amendment of Home Building Act 1989 No 147
properly notified only because it was not notified in writing) to 1
the insurer during the required notification period and before the 2
commencement of that section if the loss is properly notified to 3
the insurer within 6 months after the commencement of that 4
section. 5
(2) The required notification period is the period of insurance or the 6
period of 6 months after the loss became apparent in the case of 7
a loss that became apparent in the last 6 months of the period of 8
insurance. 9
116 Time limits on claims in insurance contracts 10
A provision included in an insurance contract for the purpose of 11
giving effect to clause 63 (3) of the Home Building Regulation 12
2004 is taken to be modified to the extent necessary to give effect 13
to clause 63 (3) of that Regulation as amended by the amending 14
Act. 15
117 Limitations on beneficiaries under contract of insurance 16
The amendment made by the amending Act to clause 55 of the 17
Home Building Regulation 2004 does not apply in respect of a 18
contract of insurance entered into before the commencement of 19
the amendment. 20
118 Proportionate liability 21
This Part does not apply to the amendments made by the 22
amending Act to the Civil Liability Act 2002. 23
Note. Schedule 1 to the Civil Liability Act 2002 provides transitional 24
arrangements for amendments to that Act. 25
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Home Building Amendment Bill 2011
Amendment of Civil Liability Act 2002 No 22 Schedule 2
Schedule 2 Amendment of Civil Liability Act 2002 1
No 22 2
[1] Section 34 Application of Part 3
Insert after section 34 (3): 4
(3A) This Part does not apply to a claim in an action for damages 5
arising from a breach of statutory warranty under Part 2C of the 6
Home Building Act 1989 and brought by a person having the 7
benefit of the statutory warranty. 8
[2] Schedule 1 Savings and transitional provisions 9
Insert at the end of clause 1 (1): 10
Home Building Amendment Act 2011, but only to the extent that 11
it amends this Act 12
[3] Schedule 1 13
Insert at the end of the Schedule: 14
Part 13 Provision consequent on enactment of 15
Home Building Amendment Act 2011 16
41 Operation of proportionate liability amendment 17
The amendment of section 34 by the Home Building Amendment 18
Act 2011 extends to civil liability arising before the 19
commencement of the amendment but not so as to affect 20
proceedings commenced before the commencement of the 21
amendment (whether or not the proceedings were finally 22
determined before the commencement of the amendment). 23
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Home Building Amendment Bill 2011
Schedule 3 Amendment of Home Building Regulation 2004
Schedule 3 Amendment of Home Building 1
Regulation 2004 2
[1] Clause 11A 3
Insert before clause 12: 4
11A Thresholds for contract requirements 5
(1) The prescribed amount for the purposes of section 7 (Form of 6
contracts) of the Act is $5,000. 7
(2) The prescribed amount for the purposes of section 7AAA (Form 8
of contracts--small jobs) of the Act is $1,000. 9
(3) The prescribed amount for the purposes of section 7BA 10
(Cooling-off period: person may rescind a contract for residential 11
building work within 5 days without penalty) of the Act is 12
$20,000. 13
[2] Clause 13 Requirements for contracts for residential building work 14
Insert "to which section 7 of the Act applies" after "A contract" in 15
clause 13 (1). 16
[3] Clause 15 Exemptions from contract requirements for holders of 17
contractor licences 18
Omit clause 15 (d). 19
[4] Clause 17 Exemptions relating to cooling-off periods in contracts 20
Omit clause 17 (c). 21
[5] Clause 18 22
Insert after clause 17: 23
18 Maximum insurance excess 24
The maximum excess for the purposes of section 102 (6) of the 25
Act is $250. 26
[6] Clause 55 Beneficiaries 27
Insert after clause 55 (2) (d): 28
(e) a body corporate that is related, within the meaning of 29
section 50 of the Corporations Act 2001 of the 30
Commonwealth, to any corporate person referred to in 31
paragraph (a), (b) or (c), 32
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Home Building Amendment Bill 2011
Amendment of Home Building Regulation 2004 Schedule 3
(f) a body corporate that is a related party, within the meaning 1
of section 228 of the Corporations Act 2001 of the 2
Commonwealth, of any corporate person referred to in 3
paragraph (a), (b) or (c). 4
[7] Clause 60 Minimum insurance cover 5
Omit clause 60 (1). Insert instead: 6
(1) For the purposes of section 102 (3) of the Act, the amount 7
prescribed is $340,000 in relation to each dwelling to which the 8
insurance relates, subject to clause 69 (Requirements for 9
insurance for residential flat buildings). 10
[8] Clause 60 (2) and (3) 11
Omit the subclauses. 12
[9] Clause 61 Period of cover 13
Omit the clause. 14
[10] Clause 63 Time limits for notice of loss or damage 15
Omit clause 63 (3). Insert instead: 16
(3) If a beneficiary gives notice of a loss (the notified loss) to the 17
insurer, the beneficiary is taken for the purposes of a provision 18
included in an insurance contract pursuant to this clause to have 19
given notice of every loss (a related loss) that was caused by the 20
same defect as caused the notified loss, whether or not the claim 21
in respect of the notified loss has been settled. 22
(4) The giving of notice of or the making of a claim for the notified 23
loss does not constitute the giving of notice of or the making of a 24
claim for any related loss for the purposes of sections 25
103BA-103BC of the Act, and those sections are not affected by 26
this clause or any provision included in an insurance contract 27
pursuant to this clause. 28
[11] Clause 69 Requirements for insurance for residential flat buildings 29
Omit "$200,000" from clause 69 (2) wherever occurring. 30
Insert instead "$340,000". 31
[12] Clause 69 (1) and (2) 32
Omit "$12,000" wherever occurring. Insert instead "$20,000". 33
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Home Building Amendment Bill 2011
Schedule 3 Amendment of Home Building Regulation 2004
[13] Clause 70 1
Omit the clause. Insert instead: 2
70 Insurance thresholds 3
The amount of $20,000 (inclusive of GST) is prescribed for the 4
purposes of sections 92, 95 and 96 of the Act. 5
[14] Clause 71 Meaning of "structural defect" 6
Omit "section 103B (2)". Insert instead "sections 18E (1) (b) and 103B (2)". 7
[15] Schedule 3 Additional contract provisions 8
Omit "The contractor must provide the owner with a certificate of home 9
warranty insurance (for work over $12,000) before commencement of work 10
and before demanding or receiving any payment.". 11
Insert instead "The contractor must provide the owner with a certificate of 12
home warranty insurance (for work over $20,000) before commencement of 13
work and before demanding or receiving any payment. Your contractor may 14
be able to organise optional home warranty insurance for work up to $20,000, 15
and you can discuss this with your contractor.". 16
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