WA’s Building Commissioner is reminding homeowners and builders of their rights and obligations amid disruptions to building projects due to recent global events.
Building Commissioner Phil Payne says he is acutely aware of concerns that fuel price volatility is leading to rapid and unanticipated price increases for building works and putting pressure on builders and trades.
“I’m engaging with peak industry bodies and have met with numerous builders,” Mr Payne said.
“While I’m comfortable that the building sector is aware of obligations under fixed-price building contracts, we will be monitoring this closely to ensure any increases being passed on to owners building or renovating their home are lawful.
“Builders are reminded that disciplinary action can be taken if they engage in harsh, unconscionable, oppressive, misleading or deceptive conduct in connection with contracts for building services.”
Once a fixed price contract has been entered into for home building work valued between $7,500 and $500,000, a builder cannot increase the contract price without the owner’s consent except in limited circumstances set out in the Home Building Contracts Act 1991.
These circumstances include work not commencing 45 days or more after the contract date, if the delay is attributable solely to the owner failing to comply with a condition imposed under the contract or due to a situation beyond either the builder or owner’s control.
The builder must be able to demonstrate that it has taken all reasonable and necessary steps to obtain the building permit within 45 days, prior to implementing a price increase under this provision.
Any price rise passed on in these circumstances must reflect actual costs incurred by the builder as a result of the delay.
Consumers should also be aware that terminating a building contract could require payments to the builder for damages or expenses.
“I encourage clear and cordial communication between builders and consumers to reach mutual agreement on any changes to the project or the contract price,” Mr Payne said.
“The current global disruptions are creating challenges across the building industry, particularly in the residential sector. Where possible, a mutual agreement on any changes to a fixed-price building contract is the best pathway for projects to continue.
“If you believe a price increase or extension of time is unjustified or excessive, you can lodge a complaint with the Department of Local Government, Industry Regulation and Safety’s Building and Energy division.”
More information is available at the Department’s Building or renovating your home webpage.
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Media contact: BEmedia@lgirs.wa.gov.au
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