{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Economic research & forecasting Economics Housing outlook Economic reports & data Tailored market research Advocacy & policy Advocacy Policy priorities Position statements Submissions News and inspiration Industry news Member alerts Media releases HOUSING Online
Business support
Business support $vuetify.icons.faArrowRight
Become an apprentice host Hire an apprentice Why host a HIA apprentice? Apprentice partner program Builder & manufacturer program Industry insurance Construction legal expenses insurance Construction works insurance Home warranty insurance Tradies & tool insurance Planning & safety solutions Building & planning services How can safety solutions help you? Independent site inspections Solutions for your business Contracts Online HIA Tradepass HIA SafeScan Advertise jobs Trusted support & guidance Contracts & compliance support Professional services Industrial relations Member savings Toyota vehicles The Good Guys Commercial Fuel savings See all
Resources & advice
Resources & advice $vuetify.icons.faArrowRight
Building it right Building codes Australian standards Getting it right on site See all Building materials & products Concrete, bricks & walls Getting products approved Use the right products for the job See all Managing your business Dealing with contracts Handling disputes Managing your employees See all Managing your safety Falls from heights Safety rules Working with silica See all Building your business Growing your business Maintaining your business See all Other subjects COVID-19 Getting approval to build Sustainable homes See all
Careers & learning
Careers & learning $vuetify.icons.faArrowRight
A rewarding career Become an apprentice Apprenticeships on offer Frequently asked questions Study with us Find a course to suit you Qualification courses Learning on demand A job in the industry Get your builder's licence Continuing Professional Development (CPD) Find jobs
HIA community
HIA community $vuetify.icons.faArrowRight
Join HIA Sign me up How do I become a member? What's in it for me? Mates rates Get involved Become an award judge Join a committee Partner with us Our initiatives HIA Building Women GreenSmart Kitchen, bathroom and design hub Get to know us Our members Our people Our partners Support for you Charitable Foundation Mental health program
Awards & events
Awards & events $vuetify.icons.faArrowRight
Awards Awards program People & Business Awards GreenSmart Australian Housing Awards Awards winners Regional Award winners Australian Housing Award winners 2023 Australian Home of the Year Enter online Industry events Events in the next month Economic outlook National Conference Events calendar
HIA products
HIA products $vuetify.icons.faArrowRight
Shop @ HIA Digital Australian Standards Contracts Online Shipping & delivery Purchasing T&Cs See all Products Purchase NCC 2022 Building codes & standards Economic reports Hard copy contracts Guides & manuals
About Contact Newsroom
$vuetify.icons.faTimes
$vuetify.icons.faMapMarker Set my location Use the field below to update your location
Address
Change location
{{propApi.title}}
{{propApi.text}} {{region}} Change location
{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location

$vuetify.icons.faPhone1300 650 620

Contracts information for kitchen, bathroom and laundry businesses

Whenever using a contract, it is important that you understand its terms and how to administer it correctly. The information below explains some of the important provisions in the HIA Kitchen, Bathroom and Laundry Supply and Install contract for use in Tasmania (the ‘Contract’).

Insurances you will need 

The Contract requires that you take out public liability with a cover of at least $5 million. If the owner tells you to either: 

  • insure the products you will be installing against loss or damage occurring after they are delivered to site, or 
  • to similarly insure the owner’s property while you are carrying out the installation, 

you can charge this cost back to the owner plus another 20% for arranging the insurance. 

Payment in progress stages 

The Contract allows you to nominate progress stages that will act as a trigger for payment. The amount claimed under each stage should reflect the actual value of work completed within that stage. It’s important that you complete the work described in a progress stage before submitting a claim. If you have made a valid claim, the owner must pay you within seven days after you give them a written claim. 

Frequently asked questions regarding contracts 

How much can I take as a deposit? 

In NSW, the amount that you can charge as a deposit is a maximum of: 

  • 5% if the contract price is more than $20,000, or 
  • 10% if the contract price is $20,000 or less. 

What happens if I am finding it difficult to get access to site? 

Your Contract provides that the owner must give you unrestricted access to the site to check measure, deliver and install the product and fix any defects during normal business hours. 

What happens if the owner has animals? 

Your client is responsible for the safekeeping, control and supervision of domestic animals on the site. It’s a good idea to remind your client of this prior to starting work if the animals could place your workers at risk, if your work could place the animals at risk or if there is a chance the animals could escape. 

What happens if at the time of entering into the contract the owner has not made selections so I cannot cost these items accurately?

The Contract contains a clause that allows you to include ‘provisional sums’ in your contract price. This will be an allowance that represents the estimated cost of that item or cost of providing the work. The owner must pay the actual cost of the item so where that cost is more or less than the allowance, the contract price will be adjusted. 

When am I able to claim an extension of time? 

You are entitled to claim an extension of time for things that are beyond your control – e.g. if the owner fails to make a selection, does not have the site ready for installation or does not give you access to site. You need to ensure that you claim these extensions of time in writing and in accordance with your Contract. 

Do variations need to be in writing? 

Yes, they need to be in writing and signed by the parties before you vary the Contract. The process for variations is set out in the contract and must be followed. 

What if the owner is contracting their own specialist trades – e.g. electricians and plumbers? 

The Contract provides that if the owner is to provide plumbing and electrical services or will supply or install appliances, they must have the site ready and the appliances available at least 24 hours before you install your product (cabinets, etc). The owner must also use licensed trades. 

What happens if the client does not pay a progress stage? 

You should first discuss this issue with your client to find out why – it could be a simple misunderstanding. However, if the client is in serious breach of their obligations, you may give them a written request to remedy the breach within 14 days. This is a necessary step if you intend on terminating the Contract on account of the serious breach. The

Contract provides that you are entitled to interest on late payment. 

If I have not been paid can I take back the materials that I have installed? 

The Contract does contain a ‘retention of title’ clause. However, these types of clauses can be very difficult to enforce and relate to a very complex area of law. It is therefore important that you seek legal advice prior to taking any action to recover your goods that have been installed. 

For more detailed information about insurances available.

To find out more, contact HIA's Workplace Services team

Email us

Share with your network:
More articles on:
{{ tag.label }} {{ tag.label }} $vuetify.icons.faTimes
Find the latest expert advice, guides and much more!

Managing your business


 

Can’t find what you need, check out other resources that might be closer to the mark.

Explore resources

Business support


 

Supporting building professionals with custom built services and products.

  • Contracts and compliance support
  • Contracts Online
  • Host an apprentice
  • Insurance Services
  • Managing safety
  • Savings for members and much more!

Explore Business support

Contract Works Insurance


 

Get a quote to make sure you're covered.

HIA Insurance offers public & products liability and material damage cover for:

  • builders
  • tradies
  • subcontractors.

Get a quote

Guide to Bathroom Planning and Design

A comprehensive industry guide that will inspire experienced designers and those new to bathroom design. Professionally presented over 300 pages with 240 spectacular images to inspire the perfect bathroom design. This guide is pac...

HIA Guide to Materials and Workmanship - Downloadable

An essential guide for building professionals which provides an unbiased, workable solution to non-regulated aspects of construction, where workmanship may lead to a variation in the finished product and where disputes may arise. ...

Guide to Kitchen & Bathroom Construction Edition 2

A valuable resource that outlines codes, standards and tolerances in the construction and installation of kitchens and bathrooms. The guide also includes information on: - kitchen cabinetry - benchtops - splashback and flooring. ...