The Office of Fair Trading in NSW issues standard form residential building contracts, such as the Home Building Contract for Work Over $20,000. This article shows you which clauses to pay special attention to, as they significantly affect essential risks associated with construction.
NSW Fair Trading Home Building Contract for Work Over $20,000 is issued by the NSW government. As such, you can be sure it is more objective and fair to both yourself and your builder, as opposed to other standard form contracts like those issued by the Master Builders Association NSW or the Housing Industry Association, which are generally skewed more towards the builder’s favour. Considering the importance of a proper home building contract, especially when the value exceeds $20,000, it’s crucial to be well-informed about its intricacies.
Nevertheless, it would still be prudent to go over your contract and be mindful of important clauses, to make sure your home building project proceeds smoothly, and that you have a recourse should you hit a bump in the road at any point during the build. Understanding the nuances of the template of NSW Fair Trading Home Building Contract for Work Over $20,000 can save you from potential pitfalls in the future. For illustration purposes only.
Here are the top clauses you need to look into, as they affect essential risks relating to time, cost, and quality. Being aware of these clauses is not just about knowing your rights but also about understanding your obligations. This knowledge can be invaluable during negotiations and in ensuring that the contract is fair and balanced.
Clause 5 Commencement of work
