What are the rules for deposits and progress payments under home building work legislation in NSW?

What are the rules for deposits and progress payments under home building work legislation in NSW?

For bigger jobs, where a large component of the cost is in the materials, the builder or tradesperson may ask for a deposit. Under NSW home building law, the maximum deposit you can be asked to pay is 10 percent.

What is the maximum contract amount where a written building contract is not required in NSW?

$5,000
By law, you must provide a written contract for residential building work: If the contract price is over $5,000 (including GST), or. if the contract price is not known, is for the provision of labour and materials by the contractor the reasonable market cost of which is more than $5,000 (including GST).

How long does it take to prepare a building contract?

To work through the process of designing your home, quoting, contracts, approvals, making selections, and construction, you can be looking at an 18-month process.

Where can I find a fair trading home building contract?

The Fair Trading home building contract is in a saveable and fillable PDF format. They can be completed on screen and printed, then saved on your computer for re-use at another time. Alternatively, as a builder or tradesperson, you can use your own contract or one purchased from an industry association.

When to seek legal advice for home building contract?

We recommend that both parties seek independent legal advice prior to entering into a home building contract or reducing, restricting or removing any contract term recommended by NSW Fair Trading. Suitable for trade work, maintenance and repair work as well as smaller alterations or improvements likely to cost less than $20,000.

When do you need a consumer building guide?

By law, your builder or tradesperson must give you a copy of this booklet before you enter into a contract for residential building work worth more than $5,000 . The booklet contains important information about things you should know before you sign the contract or accept a quote and it is strongly recommended that you take the time to read it .

How does NSW Fair Trading help with building disputes?

NSW Fair Trading can assist for the first instance of a building dispute. If a consumer (homeowner) and a trader (builder) cannot resolve a dispute between themselves, they can contact Fair Trading to assist with the dispute resolution and mediate an outcome suitable for all parties concerned in the construction project.

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