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Home building contract changes slammed

A new set of Home Building Regulations was recently announced by the NSW Government.
A new set of Home Building Regulations was recently announced by the NSW Government.

WATERED down building contract requirements could lead to consumers being taken advantage of by tradespeople, says the NSW Shadow Minister for Fair Trading.

Tania Mihailuk has slammed the Baird Liberal Government for in a move that could lead to consumers being taken advantage of and exposed to unnecessary disputes with tradespeople.

Following the Baird Government's announcement of a new set of Home Building Regulations, tradespeople will shortly no longer be required to issue consumers with a written contract for small jobs worth less than $5000 and large jobs worth less than $20,000.

The minimum threshold required before a builder or tradesperson must provide a consumer with a written contract for residential building work is currently $1000 for small jobs, and $5000 for large jobs.

Ms Mihailuk said that these changes leave consumers in a very vulnerable position.

"When consumers are looking to make repairs or repaint their house, they need the assurance that a tradesperson is able to provide their licensing details in a written contract that specifies the work to be undertaken and the agreed quote," she said.

"Consumers need the assurance that the work is being undertaken by a licensed tradesperson to a professional standard.

"Most consumers looking to make small improvements to their home will no longer have those works protected by a written contract and may unwillingly be forced to pay for work that they haven't agreed to."

Written contracts for small job residential building work must provide consumers with the following information:

  • The date the contract was signed and the name and signature of each party
  • The contractor's license number
  • A brief description of the work
  • The price of the work

Topics:  home building nsw fair trading



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