{{ 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

Statutory warranties for home building work in NSW

When you carry out residential building work in New South Wales for an owner where the value is more than $5000 you are deemed to make certain promises to the owner (and possibly future owners of the property) in relation to that work. These take the form of statutory warranties.

What are statutory warranties?

These promises or "statutory warranties" are:

  • the work will be done with due care and skill and in accordance with the plans and specifications set out in the contract
  • all materials supplied will be good and suitable for the purpose for which they are used and that, unless otherwise stated in the contract, those materials will be new
  • the work will be done in accordance with, and will comply with, the law
  • the work will be done with due diligence and within the time stipulated in the contract or, if no time is stipulated, within a reasonable time
  • if the work consists of the construction of a dwelling, alterations or additions to a dwelling or the repairing, renovation, decoration or protective treatment of a dwelling, the work will result, to the extent of the work conducted, in a dwelling that is reasonably fit for occupation as a dwelling
  • the work and materials used in doing the work will be reasonably fit for the specified purpose or result, if the owner tells the contractor why they require the work or what result they are after. This shows that the owner relied on the contractor’s skill and judgement.

How long do the warranties apply?

The owner, or a subsequent owner of the property, may make a claim that you are in breach of one or more of these warranties within six years for major defects and within two years for other defects from the date of completion. 

What to do if the owner claims under a warranty

If an owner claims you have breached a statutory warranty you must reply. You should go and inspect the work. If you want to challenge the owner’s claim you may need to consider getting expert advice. If you are found to be in breach of a statutory warranty you may be told to rectify the work or pay damages.

Defence in the case of a defect

You can defend a statutory warranty claim if you can prove that the defect has arisen from:

  • the owner’s instructions, which were contrary to your written advice (it is a good idea that you request that the owner acknowledges in writing your advice, and instructs you to proceed per their instruction anyway) or
  • your reasonable reliance on written instructions given by a person who is a relevant professional acting for the owner and who is independent of you. A relevant professional could be an architect, engineer, surveyor or someone else with specialist or expert knowledge relevant to the residential building work.

Warranties may not be excluded

You cannot exclude or restrict the operation of these statutory warranties and any term in a contract that seeks to do this is void.

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!

Contracts Online 


 

The industry’s go-to digital platform. 

No matter the size of the job, a watertight building contract is critical to protect your business, and the current climate presents a great opportunity to go digital with your contracts.

Take me there

Managing your business


 

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

Explore resources

NSW Authority for Final Payment (Pad of 50)

The NSW Authority for Final Payment Pad offers an effective method of claiming final payment from your client. It’s available in a handy tear-off pad of 50. This is a hard copy document and will be mailed to you once it's purchase...

NSW Claim for Extension of Time (Pad of 50)

This form is to notify the owner of an entitlement to an extension of time when building works have been delayed due to unforeseen circumstances, an owner’s delay or requests for additional work. If you do not notify an owner abou...

NSW Authority for Variation to Contract (Pad of 25)

The Authority for Variation to Contract (pad of 25) details changes or variations to works requiring an update to the contract between builder and owner. It can also be used for variations between builder and sub-contractor. This...

NSW New Dwellings Contract (Pack of 2)

Ideal for building professionals about to work on a new dwelling, available as a pack of two. The fixed price contract allows for all job details to be formalised and provides schedules for progress payments, excluded items, insur...

NSW Cost Plus Contract (Pack of 2)

This contract is used for residential construction works on a cost plus basis, not a lump sum ‘fixed price’. Costs are totalled and a percentage or fixed sum added for administration, supervision and profit. It allows for project ...

NSW General Housing Specifications

The NSW General Housing Specifications document forms part of the contract documents which is referred to in the building contract. It details the works to be executed and the materials to be used in carrying out those works at th...

NSW Preliminary Agreement (Pad of 50)

This Preliminary Agreement (pad of 50) is used to cover the cost of the preliminary work before and in preparation of signing the contract. This type of work may include: - preparation of plans - engineering details - obtaining a...

NSW Notice of Practical Completion (Pad of 25)

The NSW Notice of Practical Completion is used to notify an owner when a project will be at practical completion, available as a pad of 50. It sets a time and date for the owner's inspection of the works as part of the handover an...

NSW Small Works between $5K & $20K Contract (Pad of 10)

This contract is a fixed-sum contract used for non-structural, residential renovations and additions, available in a pad of 10 duplicate contracts. It’s suitable for use in the manufacture, supply and installation of: - cabinets a...

NSW Residential Contract for Renovations & Additions (Pack of 2)

NSW Residential Building Contract - Renovations/Additions

NSW Small Works over $20K Contract (Duplicate)

The NSW Small Works over $20,000 contract (in duplicate) is for residential construction work over $20,000 and complies with the NSW Home Building Act. It's suitable for smaller alteration and renovation projects. This is a hard c...