Mandatory requirements of residential building contracts:
The building and construction sector has industry specific legislation that imposes mandatory contractual requirements on its participants. This means that the Terms of Trade for companies in this sector cannot just be standard Terms of Trade used for other industries. According to the relevant legislation, a residential building contract is a contract under which the building contractor agrees with the client to do building work in relation to a household unit. The client does not have to be the owner or occupier of the house.
All residential building companies must follow certain documentation requirements. These include:
As well as building companies themselves, these mandatory requirements apply to:
- Pre-contract disclosure.
- A written contract, with a minimum of 16 specified requirements completed.
- Completion information.
- All trades, manufacturers and suppliers to the building industry.
- Related services like kitchen, bathroom and heating installers.
- Building removal companies.
- House and land packages.
The mandatory requirements do not apply to contracts of less than $26,000 plus GST ($30,000 incl. GST). However, it can often be advantageous for the builder or trades person to provide a contract anyway.