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Change to NSW Renovations and Additions Contract
What has been amended?
Clause 36.2 of the contract, which deals with risk while building works are being carried out, has been amended.
Previously, the clause provided that the builder is not responsible for loss or damage to the owner’s property left on site, or damage to certain parts of the existing structure, unless the builder failed to take reasonable care and caused the damage.
Where the builder has caused the damage, the clause limited the remedy (e.g. if the builder failed to take reasonable care and caused damage to an existing ceiling, the builder would need to repair the ceiling, but not repaint the ceiling).
Unfortunately, the Tribunal found that this potentially limited an owner’s rights under the statutory warranties. For example, if the builder caused the damage or loss, then the owner should be entitled to a remedy to cover the full extent of loss or damage.
Accordingly, HIA has amended clause 36 to clarify that the builder’s liability is limited with respect to certain actions, however this does not limit the owners’ rights under statutory warranties.
The amended clause
Hard copy contracts
HIA has drafted a new Clause 36.2 and added further definitions to Clause 1.
These updated clauses will be included in the hard copy contracts when they are next reprinted.
In the meantime, when using an existing hard copy of the NSW Residential Building Contracts for Renovations & Additions, you will need to update it by:
- Attaching this insert sheet by stapling it to the inside of your contract.
- Signing the contract and insert sheet - both you and the owner/s must, when signing the contract, sign the insert sheet as well.
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