Changes to building contracts

Will this effect you?

With the first of July quickly looming there are some changes to building contracts being introduced by the Queensland Building and Construction Commission. As majority of our building work is already performed onsite, the deposit for our renovation and new home build projects will remain at 5%. If you are however only updating your kitchen then the cabinet maker can charge up to a 20% deposit as his work is completed offsite. Please read the information provided by the QBCC below for more detailed information.

From the 1 July, reforms to the mandatory requirements for domestic building contracts will come into effect. Reducing regulatory requirements and creating fair regulation, the residential construction contracts will be more flexible and easier to use.

Different contractual requirements for domestic building work will apply, based on the work’s value.

A ‘Level 1 Renovation, Extension and Repair Contract’ will apply to lower-value domestic building work. A ‘Level 2 Renovation, Extension and Repair Contract’ will be used for work of $20,000 and over and there will also be a revised ‘New Home Construction Contract’.

For Level 2 contracts and the ‘New Home Construction Contract’, a Consumer Building Guide must be provided by the contractor to the client prior to signing a contract. The guide replaces the Contract Information Statement and provides key information about the rights and obligations of the parties.

Within 10 days of the work commencing, the contractor must also provide the owner with a commencement notice to the owner confirming the start date and the date for practical completion.

Another change enables contractors to charge a larger deposit where the value of work performed off-site is more than 50 per cent of the total contract price, such as with pre-fabricated homes or kitchen construction.

In these circumstances, a maximum deposit of 20 per cent of the contract price will be permitted to address concerns that the standard 10 per cent deposit does not cover the costs incurred in the off-site construction phase.

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 Investwell Developments Pty Ltd TA Investwell Group: QBCC LIcence: 1122627 ABN 55124108121

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