Residential building contractors – are you compliant with consumer protection laws?


Residential building consumer protection laws are now in force however there are still many contractors who are unaware of changes and are putting themselves at risk of a minimum fine of $500 for not complying with the new requirements.

Residential building consumer protection laws have now been in force for more than 5 months, however many building contractors are unaware of the changes or are not yet compliant with them. The new laws apply when carrying out any residential building work for a client which is valued over $30,000. If a contractor fails to meet the new requirements then they can be fined a minimum of $500 per offence but up $20,000 in some circumstances. ‘Building work’ covers many different trades and covers any work for, or in connection with, a residential building or other residential structures not occupied by people (such as retaining walls and fences).

A residential building contractor is now required to provide specific information to a client pre and post contract. They are also responsible for ensuring that the parties enter into a written contract which must include a number of mandatory terms. This means that a contractor needs to provide the following documents for every project:

a) Disclosure contractor information and checklist;
b) Form of written contract (covering the mandatory terms); and
c) Post contract disclosure.

We understand that many contractors are too busy to spend time and effort coming up to speed with the new regulations. If this applies to you then contact the team at Cavell Leitch and we can make it a straightforward process. We can provide you a tailored contract which can be used for all your clients at a one-off cost. The agreement will ensure you are meeting your responsibilities under the new laws while providing you the appropriate protection as the contractor. We will also provide you with a suite of supporting documents to help ensure proper disclosure and provision of information to every client as required under the new laws.

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Copyright © Cavell Leitch. All rights reserved. Redistribution is only permitted with express written permission. For enquiries please contact us. This article by its nature cannot be comprehensive and cannot be relied on by clients as advice. It is provided to assist clients to identify legal issues on which they should seek legal advice. Please consult the professional staff of Cavell Leitch for advice specific to your situation.