Fair Trading Minister Virginia Judge is encouraging NSW builders, tradespeople and consumers to have their say on a proposed update of laws governing the home building industry.

The Home Building Act 1989 protects home owners by requiring builders and tradespeople to hold licences and to have proper contracts and insurance in place for most jobs.

“The Act is being re-written to ensure it reflects today’s home building market,” Ms Judge said.

“A consultation paper has been prepared outlining a number of options for reform that could be incorporated in the new Act.

“This includes reducing red tape, clarifying and modernising home warranty insurance arrangements and providing greater certainty and transparency for consumers and licensed contractors.

“The rewrite will also help facilitate a shift to a uniform national licensing system in 2012 and strengthen disciplinary and enforcement powers.”

Some of the key options in the consultation paper include:

• streamlining the assessment criteria for building licence applications and renewals
• increasing the monetary threshold for owner-builder work, which requires an owner-builder permit, from $5,000 to $12,000 to take into account increased building costs
• requiring home building contracts to specifically address issues of progress payments and termination under the contract
• clarifying when the statutory warranties under the Act commence and
• allowing builders to initiate the dispute resolution process.

“Views on the consultation paper will inform the preparation of draft legislation,” Ms Judge said.

“This is a good opportunity for people to have their say on important laws that affect thousands of home owners and building industry workers.”

The consultation paper is now available at this website. Submissions close on Friday 19 March 2010.

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