A licensed builder is required under the Home Building Act 1989 to obtain insurance cover for a residential building project before commencing work on the project and before taking any money (including a deposit) under the building contract (e.g. when contracting with a homeowner, owner-builder or developer). Developer should seek independent professional advice as to other measures available to them to minimise any loss including non-completion and defective works as a result of the dealth, disappearance or insolvency of the builder they engage. Read More
The Act also provides that a developer must not enter into a contract for the sale of land on which residential building work has been done (within 6 years of completion of the work), or is to be done, on the developer’s behalf unless a Certificate of Insurance is attached to the contract of sale. Certain circumstances, such as new high-rise construction and sale off-the-plan, may be exempt. Read more
The preference of the icare builders warranty is not to request additional security. However, for a small number of builders may require security in the form of a Deed of Indemnity as a condition of approving eligibility or providing cover for a specific project. Read more
References on this website to builders and building work include and apply to work undertaken by trade contractors and other building contractors such as electricians, plumbers, carpenters, swimming pool builders etc.