24 September 2013
The reforms proposed to the Home Building Act are a positive move towards a fairer system for homeowners and developers, says the Urban Taskforce.
“Too much time and money is currently spent on litigation between owners corporations and developers in the resolution of defects that can be better spent on ensuring houses and apartments are well built and managed,” says Urban Taskforce CEO, Chris Johnson “The introduction of an expert determination process with independent assessors will go a long way to reducing legal battles.”
“Most building contracts have a sum of money retained to cover the resolution of defects that can become apparent as a building is used and weathers and clearly the builder needs to ensure that any defects are quickly rectified. Unfortunately disputes have developed over the rectification of defects and the reforms now reduce ambit claims, require homeowners to give builders access to make rectification and require homeowners to notify defects early. These are all changes that can lead to a better relationship between all parties.”
“The move to a new definition of a major defect that includes waterproofing and fire protection is welcomed as the previous definition of structural defect was not well defined.”
“Controls on phoenix company directors if they apply for a new licence are also welcomed. The Urban Taskforce believes that quality builders and developers must be encouraged to be involved in the development of apartment buildings and the reforms to the Act need to support this.”
“While the proposed reforms to the Home Building Act are a welcome move, the industry is also watching the planning reforms that seem to have been watered down. We need a quality development industry in NSW to provide housing for our population growth and the industry will be affected by the combination of all reforms proposed in a number of acts by the NSW Government.”