Welcome to the first edition of Foundations!
Foundations is intended to keep you up-to-date with legislative reform, operational changes, key types of complaint as well as current and future developments relevant to the home building industry in NSW.
The editors of Foundations are interested in hearing your thoughts on the first issue. Please send us an email to foundations@oft.commerce.nsw.gov.au and tell us what you think.
Reducing licensing red tape
As outlined in the State Plan, the Iemma Government is committed to the reduction of unnecessary red tape. The Office of Fair Trading will continue to look at ways to further reduce regulatory burden for those in the home building industry.
Three year licence option
On 1 July 2007, the Office of Fair Trading introduced a three year licence renewal option for builders, tradespersons and building consultants, in line with the NSW Government’s policies of being open for business and cutting red tape. The standard one year renewal is still available.
Licensees who take up the three year option will save approximately 20% over the three years of the licence and will not be subjected to the normal yearly CPI increase to licence fees.
Letter about home warranty insurance no longer required
In addition to the three year renewal option, new reporting arrangements involving home warranty insurers introduced in 2006 mean that Fair Trading no longer requires builders with home warranty insurance cover to provide a letter from their insurer at each renewal – this applies to both one and three year renewals. Information concerning a builder’s home warranty insurance cover for the purpose of recording on the public register is now obtained directly from insurers.
Online renewals coming
Early in 2008, it is planned that licensees will be able to renew their licences online over the internet.
Renew on time
Remember to get your licence renewed before the expiry date on the renewal form to avoid missing out on future contracts when potential customers check the public register. If you lodge the renewal form within 3 months after the expiry date, you will need to pay an additional fee of $40 to keep your existing licence number.
You can save time by completing the credit card payment option on the renewal form and faxing it directly to Fair Trading.
As outlined in the State Plan, the Iemma government is committed to the reduction of unnecessary red tape. The Office of Fair Trading will continue to look at ways to further reduce regulatory burden for those in the home building industry.
Back to top
Monitoring compliance
Compliance programs limit the ability of unlicensed contractors to disadvantage consumers and reputable licensed contractors. The Home Building Service conducts regular programs to test the level of compliance with the Home Building Act 1989. Penalties are imposed on contractors who fail to comply with the Act. These penalties range from a warning to prosecution action which may result in large penalties being handed down by the courts.
Since 1 July, 2003 the Office of Fair Trading has conducted many successful compliance programs. A copy of the Compliance activity overview in PDF format (size: 70k) detailing these activities and their outcomes can be found on the Fair Trading website.
Compliance programs are planned for the 2007/08 financial year and will continue to target unlicensed activity, actions of owner-builders, home warranty issues and non-compliant contracts.
Surveillance
We use surveillance as a tool for gathering evidence to support prosecution, show cause or injunctive action to be taken against offenders. Surveillance is undertaken to obtain direct evidence such as video recordings and photographs which will support legal proceedings being taken against a person.
Our targets are contractors who are unlicensed, whose licences have been cancelled or who may have been disqualified. Video surveillance footage was used in a recent case before the Supreme Court of NSW, resulting in prison sentences being imposed on the defendants. We will continue to use surveillance techniques to gather evidence in support of proceedings against contractors who break the law.
Operation Hardwire
From 18–22 June 2007, the Home Building Service conducted a compliance program (Operation Hardwire) to raise awareness of the certification requirements of the Electricity (Consumer Safety) Act 2004. The certification process is an important part of ensuring that electrical wiring has been carried out safely and in accordance with wiring rules. This program focused on contractors involved in air-conditioning work, electrical installation work in new homes and renovations.
As a result of the program 1,023 consumer contracts were reviewed, 62 offences identified and 20 warning letters and 13 penalty notices issued.
Non-compliance, it’s just not worth it
An investigation into the activities of a kit home supplier in February 2007 found that the operator was unable to complete his existing contracts due to a very high level of debt. Deposits had been taken from many consumers and in some cases more than $100,000 had been paid with little, or none of the kit homes being supplied.
The supplier also failed to provide home warranty insurance, which breached the Home Building Act and put consumers at considerable risk in the event that the supplier could not continue to trade.
Fair Trading cancelled the supplier’s licence. Investigations are continuing with a view to prosecuting the individuals responsible for allowing the company to contravene the requirements of the Home Building Act.
Back to top
Poor work leads to loss of licence
Consumers have a right to expect that building work done on their home by a licensed contractor is of reasonable quality and free of defects. When consumers are provided with shoddy work, licensees can find themselves under the watchful and diligent eye of Fair Trading’s Building Inspectors.
One licensee who came under the microscope was Mr Zuhret Korajac. Licensed for general concreting work, Korajac had entered into contracts (one for $11,000, and the other, $17,000) to provide two home owners with stencil concrete driveways.
When both home owners reported their concerns about the standard of work to Fair Trading, Building Inspectors conducted site inspections and identified a range defects including:
Korajac was issued with a Notice to Show Cause following his failure to perform work in a proper and workmanlike manner and to comply with Tribunal orders. Once again, he failed to comply.
In March 2007 Korajac was disqualified from being an authority holder and his licence was cancelled.
As this example demonstrates, there are severe and lasting consequences for licensed contractors who operate with such disregard for their responsibility to provide work of an acceptable standard.
Back to top
Enforcement action, Home Building Act - June quarter 2007
In the course of administering NSW’s fair trading laws, the Office of Fair Trading may be required to take enforcement action against individuals, or businesses that contravene those laws. Enforcement action is designed to stop the unlawful conduct, reduce the likelihood of its recurrence, act as a general and specific deterrent and where appropriate, reverse its effect through actions such as corrective advertising or compensation.
This report includes public information available through the courts as well as information on public registers administered by the Office of Fair Trading. Matters subject to an appeal have not been included in this report. The enforcement actions listed may include:
Back to top
Working interstate
In February this year, new arrangements were put in place making it easier for licensed tradespeople and authorities that issue licences, to know what licence a worker is entitled to when applying for a licence in another state. The new arrangements cover licences issued to individuals who are:
Under mutual recognition, an interstate applicant is ‘deemed’ or presumed to be registered in NSW to do the same work that they are entitled to do in their original state or territory. If the applicant has fulfilled all the requirements, presumed registration starts on the date an application is received by the Office of Fair Trading. Within a month, the application is either approved or refused, or additional information is requested.
Information on equivalent licences is publicly available on the Office of Fair Trading website, which is cross-linked with the websites of state and territory registering authorities.
Registering authorities also benefit from the new arrangements. Previously, applications for mutual recognition were determined on a case-by-case basis. Under the improved arrangements, equivalent licences are set out clearly.
The new arrangements are the result of states, territories and the Commonwealth working together through the Council of Australian Governments (COAG) to improve the system of mutual recognition. As work continues, additional vocationally-trained, licensed occupations will be included.
The benefits flowing from mutual recognition include lower costs to business, improved industry competitiveness, greater choice for consumers, improved occupational mobility, and greater cooperation between regulatory authorities.
For more information regarding mutual recognition, contact the Office of Fair Trading on 13 32 20 or go to the interstate licences page.
Back to top
Storms in the Hunter Region
In the aftermath of the storms, Fair Trading took to the streets and suburbs of Newcastle and Gosford to ensure that home owners and contractors involved in rectification work were fully aware of their rights and responsibilities.
When wild storms lashed the Hunter recently, many thousands of properties were affected and home owners right across the region needed help to repair the damage.
The scope of the devastation was significant. Insurance costs have exceeded $550 million and around 58,000 claims have been lodged across the NSW Central Coast and Hunter regions*. According to the Insurance Council of Australia (ICA), most residential claims have been processed, but larger claims are still coming through.
In the aftermath of the storms, Fair Trading took to the streets and suburbs of Newcastle and Gosford to ensure that home owners and contractors involved in rectification work were fully aware of their rights and responsibilities.
Beginning Monday 30 July, Fair Trading staff and Building Inspectors visited over 200 homes in affected areas to warn consumers against dealing with unlicensed contractors.
To monitor compliance with the requirements of the Home Building Act, Fair Trading assessed 38 building sites, resulting in penalty infringement notices being issued to 2 unlicensed contractors.
Unscrupulous operators are not wanted in the home building industry and Fair Trading is committed to protecting consumers and licence holders against their unethical and unfair practices.
* source AAPT 23 July
Back to top
Compliance for electrical contractors
The Certificate of Compliance Electrical Work (the Compliance Certificate) has replaced the Notice of Electrical Work (NOEW). Every time you add, alter, disconnect, reconnect or replace an electrical installation, you need to fill out the Compliance Certificate. This includes putting in new power points, new electrical fittings or work on the electrical switchboard.
The Compliance Certificate is the consumer’s assurance that you are compliant with the Australia/New Zealand wiring rules for electrical installation work. Consumers should be given a copy of the Compliance Certificate after you finish the job.
Changes have been made to the notification of electrical work to electricity network providers and to the Office of Fair Trading.
You must give a copy of the Compliance Certificate to the electrical network provider when the work involves:
The Office of Fair Trading must get a copy of the Compliance Certificate when the work involves connecting an installation to a stand-alone power system (ie. the installation is not connected to any electricity network). View or print a copy of the Electrical installations fact sheet for more information.
Compliance Certificates can be obtained from electrical wholesalers. For full details of these changes, consult the Electricity Consumer Safety Act 2004 and Electricity Consumer Safety Regulation 2006.
Back to top
Are you covered?
On 1 March 2007 the minimum cover that must be provided by insurers to homeowners, under the HWI scheme was increased from $200,000 to $300,000.
Home warranty insurance protects homeowners for a period of six years for structural defects and two years for non-structural defects. Cover is also provided for loss of deposit and completion costs (for an amount up to 20% of the contract price with a $300,000 maximum limit) for a period of 12 months after failure to commence, or cessation of work.
It is the responsibility of the building contractor to provide home warranty insurance if the residential building work is valued at over $12,000. The cover must be in place before supplying a kit home or commencing any residential building work with a consumer and before taking any money (including a deposit) under the building contract.
Regarding speculative building work, the builder or developer must attach the certificate of insurance to the sale contract. Owner-builders who sell their property within six years of the completion of owner-builder work must also provide home warranty insurance with their contract for sale of the property.
Compliance under the Home Building Act 1989 is a condition of the environmental planning and assessment legislation which applies to the development consent for residential building work. If the conditions of the development consent are not met, the principal certifying authority (council or private certifier) may not issue a final occupation or building certificate. This could have a negative effect on a home owner’s ability to sell and/or legally occupy a residence.
Back to top
Approved insurers
On 1 June 2007, the number of approved insurers was reduced to five, as Australian International Insurance Limited (AIIL) and Lumley General Insurance Limited combined. AIIL’s parent company, OAMPS Ltd was sold to Lumley’s parent company, Wesfarmers Limited. Home warranty insurance will continue to be provided under the name of Lumley General Insurance Limited.
Before the NSW Home Warranty Insurance Inquiry in 2003, only two insurers, Royal and Sun Alliance Limited (now known as Vero) and Reward Insurance Limited were approved to provide home warranty insurance to builders in New South Wales. Following the Inquiry’s recommendations, improvements and changes to the insurance scheme resulted in more insurers entering the market.
On 31 December 2003, AIIL took over the home warranty insurance business of Reward Insurance Limited. From mid–late 2004 CGU Insurance Limited and Lumley General Insurance Limited respectively, commenced providing home warranty insurance in New South Wales. In 2005, QBE Insurance Australia Limited and Calliden Limited entered the NSW home warranty market. Until 31 May 2007 there were six insurers providing home warranty insurance to builders, as well as a specialist insurer (Australian Unity General Insurance Limited) providing cover only to owner-builders.
Contact details for approved insurers can be found on the Approved insurers page of the Fair Trading website.
Back to top
Home Warranty Insurance Scheme Board
The Home Warranty Insurance Scheme Board (Board) was established to oversee the operation of the home warranty insurance scheme. The Board was established under Part 6 of the Home Building Act 1989.
The Board meets bi-monthly and its functions are to:
The Board has overseen the development of amended conditions of approval for insurers, new market practice and claims handling guidelines, an industry deed, and arrangements for the reporting of data by insurers. As part of its ongoing monitoring role, the Board is examining how the Scheme may be improved for the benefit of homeowners and builders. The Board is also overseeing arrangements for the proposed publication (from early September 2007) of information on the operation of the Scheme based on data provided by insurers.
To contact the Home Warranty Insurance Scheme Board, call 02 9777 8803 or email: HWISchemeBoardSM@oft.commerce.nsw.gov.au
Licensees will be kept up-to-date via this eNewsletter when new developments in the Home Warranty Insurance Scheme are implemented.
Back to top
CPD for builders and swimming pool builders
Changes apply from 1 January 2008
From 1 January 2008, licensed builders and swimming pool builders will benefit from the introduction of enhancements to Continuing Professional Development (CPD).
In late 2006, an independent evaluation of the CPD program operating in the NSW home building industry recommended changes. The Government has responded to matters raised by stakeholders and is considering how best to shape CPD so that it meets the needs of all participants.
For now, the current CPD program is still in place and nothing has changed. Builders and swimming pool builders still have to earn 25 points per year and 100 points over three years as a requirement of licence renewal.
Back to top
Foundations is intended to keep you up-to-date with legislative reform, operational changes, key types of complaint as well as current and future developments relevant to the home building industry in NSW.
The editors of Foundations are interested in hearing your thoughts on the first issue. Please send us an email to foundations@oft.commerce.nsw.gov.au and tell us what you think.
Reducing licensing red tape
As outlined in the State Plan, the Iemma Government is committed to the reduction of unnecessary red tape. The Office of Fair Trading will continue to look at ways to further reduce regulatory burden for those in the home building industry.
Three year licence option
On 1 July 2007, the Office of Fair Trading introduced a three year licence renewal option for builders, tradespersons and building consultants, in line with the NSW Government’s policies of being open for business and cutting red tape. The standard one year renewal is still available.
Licensees who take up the three year option will save approximately 20% over the three years of the licence and will not be subjected to the normal yearly CPI increase to licence fees.
Letter about home warranty insurance no longer required
In addition to the three year renewal option, new reporting arrangements involving home warranty insurers introduced in 2006 mean that Fair Trading no longer requires builders with home warranty insurance cover to provide a letter from their insurer at each renewal – this applies to both one and three year renewals. Information concerning a builder’s home warranty insurance cover for the purpose of recording on the public register is now obtained directly from insurers.
Online renewals coming
Early in 2008, it is planned that licensees will be able to renew their licences online over the internet.
Renew on time
Remember to get your licence renewed before the expiry date on the renewal form to avoid missing out on future contracts when potential customers check the public register. If you lodge the renewal form within 3 months after the expiry date, you will need to pay an additional fee of $40 to keep your existing licence number.
You can save time by completing the credit card payment option on the renewal form and faxing it directly to Fair Trading.
As outlined in the State Plan, the Iemma government is committed to the reduction of unnecessary red tape. The Office of Fair Trading will continue to look at ways to further reduce regulatory burden for those in the home building industry.
Back to top
Monitoring compliance
Compliance programs limit the ability of unlicensed contractors to disadvantage consumers and reputable licensed contractors. The Home Building Service conducts regular programs to test the level of compliance with the Home Building Act 1989. Penalties are imposed on contractors who fail to comply with the Act. These penalties range from a warning to prosecution action which may result in large penalties being handed down by the courts.
Since 1 July, 2003 the Office of Fair Trading has conducted many successful compliance programs. A copy of the Compliance activity overview in PDF format (size: 70k) detailing these activities and their outcomes can be found on the Fair Trading website.
Compliance programs are planned for the 2007/08 financial year and will continue to target unlicensed activity, actions of owner-builders, home warranty issues and non-compliant contracts.
Surveillance
We use surveillance as a tool for gathering evidence to support prosecution, show cause or injunctive action to be taken against offenders. Surveillance is undertaken to obtain direct evidence such as video recordings and photographs which will support legal proceedings being taken against a person.
Our targets are contractors who are unlicensed, whose licences have been cancelled or who may have been disqualified. Video surveillance footage was used in a recent case before the Supreme Court of NSW, resulting in prison sentences being imposed on the defendants. We will continue to use surveillance techniques to gather evidence in support of proceedings against contractors who break the law.
Operation Hardwire
From 18–22 June 2007, the Home Building Service conducted a compliance program (Operation Hardwire) to raise awareness of the certification requirements of the Electricity (Consumer Safety) Act 2004. The certification process is an important part of ensuring that electrical wiring has been carried out safely and in accordance with wiring rules. This program focused on contractors involved in air-conditioning work, electrical installation work in new homes and renovations.
As a result of the program 1,023 consumer contracts were reviewed, 62 offences identified and 20 warning letters and 13 penalty notices issued.
Non-compliance, it’s just not worth it
An investigation into the activities of a kit home supplier in February 2007 found that the operator was unable to complete his existing contracts due to a very high level of debt. Deposits had been taken from many consumers and in some cases more than $100,000 had been paid with little, or none of the kit homes being supplied.
The supplier also failed to provide home warranty insurance, which breached the Home Building Act and put consumers at considerable risk in the event that the supplier could not continue to trade.
Fair Trading cancelled the supplier’s licence. Investigations are continuing with a view to prosecuting the individuals responsible for allowing the company to contravene the requirements of the Home Building Act.
Back to top
Poor work leads to loss of licence
Consumers have a right to expect that building work done on their home by a licensed contractor is of reasonable quality and free of defects. When consumers are provided with shoddy work, licensees can find themselves under the watchful and diligent eye of Fair Trading’s Building Inspectors.
One licensee who came under the microscope was Mr Zuhret Korajac. Licensed for general concreting work, Korajac had entered into contracts (one for $11,000, and the other, $17,000) to provide two home owners with stencil concrete driveways.
When both home owners reported their concerns about the standard of work to Fair Trading, Building Inspectors conducted site inspections and identified a range defects including:
- uneven and patchy surfaces
- incorrect control joint depths
- cracking and lifting of stencil coating
- cracking of concrete and lack of expansion joints.
Korajac was issued with a Notice to Show Cause following his failure to perform work in a proper and workmanlike manner and to comply with Tribunal orders. Once again, he failed to comply.
In March 2007 Korajac was disqualified from being an authority holder and his licence was cancelled.
As this example demonstrates, there are severe and lasting consequences for licensed contractors who operate with such disregard for their responsibility to provide work of an acceptable standard.
Back to top
Enforcement action, Home Building Act - June quarter 2007
In the course of administering NSW’s fair trading laws, the Office of Fair Trading may be required to take enforcement action against individuals, or businesses that contravene those laws. Enforcement action is designed to stop the unlawful conduct, reduce the likelihood of its recurrence, act as a general and specific deterrent and where appropriate, reverse its effect through actions such as corrective advertising or compensation.
This report includes public information available through the courts as well as information on public registers administered by the Office of Fair Trading. Matters subject to an appeal have not been included in this report. The enforcement actions listed may include:
- convictions resulting from prosecution in a court
- statistical information on penalty notices issued by the Office of Fair Trading
- disciplinary determinations – including results of proceedings in the Administrative Decisions Tribunal
- injunctions resulting from civil proceedings in the Supreme Court.
Back to top
Working interstate
In February this year, new arrangements were put in place making it easier for licensed tradespeople and authorities that issue licences, to know what licence a worker is entitled to when applying for a licence in another state. The new arrangements cover licences issued to individuals who are:
- electricians
- tradespeople with restricted electrical licences (Disconnect / Reconnect Certificates)
- plumbers and gas-fitters
- carpenters and joiners, bricklayers, builders, and
- refrigeration and air-conditioning mechanics.
Under mutual recognition, an interstate applicant is ‘deemed’ or presumed to be registered in NSW to do the same work that they are entitled to do in their original state or territory. If the applicant has fulfilled all the requirements, presumed registration starts on the date an application is received by the Office of Fair Trading. Within a month, the application is either approved or refused, or additional information is requested.
Information on equivalent licences is publicly available on the Office of Fair Trading website, which is cross-linked with the websites of state and territory registering authorities.
Registering authorities also benefit from the new arrangements. Previously, applications for mutual recognition were determined on a case-by-case basis. Under the improved arrangements, equivalent licences are set out clearly.
The new arrangements are the result of states, territories and the Commonwealth working together through the Council of Australian Governments (COAG) to improve the system of mutual recognition. As work continues, additional vocationally-trained, licensed occupations will be included.
The benefits flowing from mutual recognition include lower costs to business, improved industry competitiveness, greater choice for consumers, improved occupational mobility, and greater cooperation between regulatory authorities.
For more information regarding mutual recognition, contact the Office of Fair Trading on 13 32 20 or go to the interstate licences page.
Back to top
Storms in the Hunter Region
In the aftermath of the storms, Fair Trading took to the streets and suburbs of Newcastle and Gosford to ensure that home owners and contractors involved in rectification work were fully aware of their rights and responsibilities.
When wild storms lashed the Hunter recently, many thousands of properties were affected and home owners right across the region needed help to repair the damage.
The scope of the devastation was significant. Insurance costs have exceeded $550 million and around 58,000 claims have been lodged across the NSW Central Coast and Hunter regions*. According to the Insurance Council of Australia (ICA), most residential claims have been processed, but larger claims are still coming through.
In the aftermath of the storms, Fair Trading took to the streets and suburbs of Newcastle and Gosford to ensure that home owners and contractors involved in rectification work were fully aware of their rights and responsibilities.
Beginning Monday 30 July, Fair Trading staff and Building Inspectors visited over 200 homes in affected areas to warn consumers against dealing with unlicensed contractors.
To monitor compliance with the requirements of the Home Building Act, Fair Trading assessed 38 building sites, resulting in penalty infringement notices being issued to 2 unlicensed contractors.
Unscrupulous operators are not wanted in the home building industry and Fair Trading is committed to protecting consumers and licence holders against their unethical and unfair practices.
* source AAPT 23 July
Back to top
Compliance for electrical contractors
The Certificate of Compliance Electrical Work (the Compliance Certificate) has replaced the Notice of Electrical Work (NOEW). Every time you add, alter, disconnect, reconnect or replace an electrical installation, you need to fill out the Compliance Certificate. This includes putting in new power points, new electrical fittings or work on the electrical switchboard.
The Compliance Certificate is the consumer’s assurance that you are compliant with the Australia/New Zealand wiring rules for electrical installation work. Consumers should be given a copy of the Compliance Certificate after you finish the job.
Changes have been made to the notification of electrical work to electricity network providers and to the Office of Fair Trading.
You must give a copy of the Compliance Certificate to the electrical network provider when the work involves:
- a new installation
- alterations or repairs which require the network provider to do extra work for the network connection or for metering arrangements
- work on electrical switchboards or associated equipment that effects the electrical loading, method of electrical protection, system of earthing or the physical location of the switchboard.
The Office of Fair Trading must get a copy of the Compliance Certificate when the work involves connecting an installation to a stand-alone power system (ie. the installation is not connected to any electricity network). View or print a copy of the Electrical installations fact sheet for more information.
Compliance Certificates can be obtained from electrical wholesalers. For full details of these changes, consult the Electricity Consumer Safety Act 2004 and Electricity Consumer Safety Regulation 2006.
Back to top
Are you covered?
On 1 March 2007 the minimum cover that must be provided by insurers to homeowners, under the HWI scheme was increased from $200,000 to $300,000.
Home warranty insurance protects homeowners for a period of six years for structural defects and two years for non-structural defects. Cover is also provided for loss of deposit and completion costs (for an amount up to 20% of the contract price with a $300,000 maximum limit) for a period of 12 months after failure to commence, or cessation of work.
It is the responsibility of the building contractor to provide home warranty insurance if the residential building work is valued at over $12,000. The cover must be in place before supplying a kit home or commencing any residential building work with a consumer and before taking any money (including a deposit) under the building contract.
Regarding speculative building work, the builder or developer must attach the certificate of insurance to the sale contract. Owner-builders who sell their property within six years of the completion of owner-builder work must also provide home warranty insurance with their contract for sale of the property.
Compliance under the Home Building Act 1989 is a condition of the environmental planning and assessment legislation which applies to the development consent for residential building work. If the conditions of the development consent are not met, the principal certifying authority (council or private certifier) may not issue a final occupation or building certificate. This could have a negative effect on a home owner’s ability to sell and/or legally occupy a residence.
Back to top
Approved insurers
On 1 June 2007, the number of approved insurers was reduced to five, as Australian International Insurance Limited (AIIL) and Lumley General Insurance Limited combined. AIIL’s parent company, OAMPS Ltd was sold to Lumley’s parent company, Wesfarmers Limited. Home warranty insurance will continue to be provided under the name of Lumley General Insurance Limited.
Before the NSW Home Warranty Insurance Inquiry in 2003, only two insurers, Royal and Sun Alliance Limited (now known as Vero) and Reward Insurance Limited were approved to provide home warranty insurance to builders in New South Wales. Following the Inquiry’s recommendations, improvements and changes to the insurance scheme resulted in more insurers entering the market.
On 31 December 2003, AIIL took over the home warranty insurance business of Reward Insurance Limited. From mid–late 2004 CGU Insurance Limited and Lumley General Insurance Limited respectively, commenced providing home warranty insurance in New South Wales. In 2005, QBE Insurance Australia Limited and Calliden Limited entered the NSW home warranty market. Until 31 May 2007 there were six insurers providing home warranty insurance to builders, as well as a specialist insurer (Australian Unity General Insurance Limited) providing cover only to owner-builders.
Contact details for approved insurers can be found on the Approved insurers page of the Fair Trading website.
Back to top
Home Warranty Insurance Scheme Board
The Home Warranty Insurance Scheme Board (Board) was established to oversee the operation of the home warranty insurance scheme. The Board was established under Part 6 of the Home Building Act 1989.
The Board meets bi-monthly and its functions are to:
- advise the Minister with respect to the approval of kinds of insurance and insurers
- advise the Minister on the conditions of approval of insurers and variations of such approvals
- monitor the operation of the scheme and to provide advice and to make recommendations with respect to the scheme
- provide advice to the Minister with respect to any other matter referred to it by the Minister.
The Board has overseen the development of amended conditions of approval for insurers, new market practice and claims handling guidelines, an industry deed, and arrangements for the reporting of data by insurers. As part of its ongoing monitoring role, the Board is examining how the Scheme may be improved for the benefit of homeowners and builders. The Board is also overseeing arrangements for the proposed publication (from early September 2007) of information on the operation of the Scheme based on data provided by insurers.
To contact the Home Warranty Insurance Scheme Board, call 02 9777 8803 or email: HWISchemeBoardSM@oft.commerce.nsw.gov.au
Licensees will be kept up-to-date via this eNewsletter when new developments in the Home Warranty Insurance Scheme are implemented.
Back to top
CPD for builders and swimming pool builders
Changes apply from 1 January 2008
From 1 January 2008, licensed builders and swimming pool builders will benefit from the introduction of enhancements to Continuing Professional Development (CPD).
In late 2006, an independent evaluation of the CPD program operating in the NSW home building industry recommended changes. The Government has responded to matters raised by stakeholders and is considering how best to shape CPD so that it meets the needs of all participants.
For now, the current CPD program is still in place and nothing has changed. Builders and swimming pool builders still have to earn 25 points per year and 100 points over three years as a requirement of licence renewal.
Back to top
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