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- Building industry regulation - WA
BUILDING INDUSTRY REGULATIONWESTERN AUSTRALIA |
Licensing and registration | Contract formalities | Insurance | Complaints |
Building in Western Australia is regulated by: |
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Licensing and registration |
Development approval |
Any development (including construction work, demolition and changes of use), whether residential or commercial, generally requires a development approval from the local council under the Local Government Act (also known as planning approval) to allow the council to ensure that the works proposed are suitable to the area and not detrimental to the amenity of neighbours. A development approval can be obtained by way of a formal application completed by the land owner submitted to the local council using the relevant forms provided, supported by title searches, plans and photographs sufficient to describe the work and by paying the fees required. Development approval must be obtained prior to applying for a building permit. |
Building permit |
In addition to development approvals administered and authorised by the local council, the Local Government Act requires local councils to administer the quality and safety of building work through the issue of, what is now called, a building permit. After approval but before any demolition, alteration or construction work, an application must be made for, and a building licence granted, to carry out the work required. To apply for a building permit, the person carrying out the work must first be a licensed building services contractor or a licensed owner builder under the Building Services (Registration) Act, with qualifications to ensure the work is carried out properly. Exemptions from a 'building permit' apply for low risk or low value work (less than $20,000) and for owner-builders. |
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Contract formalities |
The HBC Act applies to everyone entering into a contract for home building and associated work valued between $7,500 and $500,000. Home building work and associated work includes (among other things) constructing, altering, improving or repairing a dwelling and any associated site works, pergolas, carports etc. Both the builder and the contracting home owner must comply with the HBC Act. The HBC Act cannot be contracted out of and any waiver of a right given by the HBC Act is void. The HBC Act requires that: |
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Home owners or builders may draw up their own contracts for home building work as long as the contract fulfils the minimum requirements as set out in the HBC Act. A party may terminate the contract if there has been non-compliance with requirements under the HBC Act. To effectively terminate, the terminating party must give a signed written notice to the other party before the building work is completed. |
The HBC Act contains special rules applying to costs plus contracts. A costs plus contract must be headed 'costs plus contract' and contain a statement acknowledging that it is a 'costs plus contract' and that the HBC Act does not apply to it except in relation to the requirement for a builder to take out home indemnity insurance as explained below. |
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Insurance |
Home indemnity insurance is required where the building work is valued at over the prescribed amount (currently $20,000) or relates to the placement of a transportable dwelling on land. The minimum cover required is the larger of $100,000 or the cost of the building work. The policy covers the home owner, and future title holders, for a period of six years from the date of practical completion. Home indemnity insurance ensures that residential building work will be finished at no additional cost to the home owner if the builder dies, disappears or becomes insolvent. Home indemnity insurance is not required: |
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It is an offence under the HBC Act for builders not to obtain this cover, or to request payment before a home indemnity insurance is in place. Claims under a home insurance policy must be made within a period of six years from the day of practical completion of the contract. |
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Complaints |
A new regime has been introduced under the Building Services (Complaint Resolution and Administration) Act 2011 (WA) to deal with complaints about building services and home building work contract matters. Any person (owner, neighbour, builder or sub-contractor) can make a complaint to the Building Commissioner about a regulated building service not being carried out properly or a breach of a home building work contract or the HBC Act. Complaints are received and investigated by the Building Commissioner. The Commissioner must arrange for an investigation and a report that may include recommendations on how the complaint should be dealt with. The Building Commissioner can then: |
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Updated 30 June 2012 |