Browse Forums Building A New House Re: Structural/ non structural guarantee for new house 2Jul 06, 2014 8:34 am The Harder You Try - the Luckier You Get ! Web site http://www.anewhouse.com.au Informative, Amusing, and Opinionated Blog - Over 600 posts on all aspects of building a new house. Re: Structural/ non structural guarantee for new house 4Jul 06, 2014 11:47 am Well to avoid the discussion going off-track. I just want to understand if I should be including warranty clauses in the contract I'm signing or am I covered by law in any case. ? I'm a FHB and just want to make sure that I do not have to regret after signing the contract. One of the reasons I went on with this builder was that they offered me 10 year structural guarantee in their sales pitch before taking the deposit. Also, I was told that this guarantee is something more than what was required legally or offered by other building companies. Thanks for your inputs and comments. Re: Structural/ non structural guarantee for new house 5Jul 06, 2014 2:04 pm Hi Roller, That's a good question. The Vic Domestic Building Contracts Act states the following implied warranties: DOMESTIC BUILDING CONTRACTS ACT 1995 - SECT 8 Implied warranties concerning all domestic building work The following warranties about the work to be carried out under a domestic building contract are part of every domestic building contract— (a) the builder warrants that the work will be carried out in a proper and workmanlike manner and in accordance with the plans and specifications set out in the contract; (b) the builder warrants that all materials to be supplied by the builder for use in the work 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; (c) the builder warrants that the work will be carried out in accordance with, and will comply with, all laws and legal requirements including, without limiting the generality of this warranty, the Building Act 1993 and the regulations made under that Act [4] ; (d) the builder warrants that the work will be carried out with reasonable care and skill and will be completed by the date (or within the period) specified by the contract; (e) the builder warrants that if the work consists of the erection or construction of a home, or is work intended to renovate, alter, extend, improve or repair a home to a stage suitable for occupation, the home will be suitable for occupation at the time the work is completed; (f) if the contract states the particular purpose for which the work is required, or the result which the building owner wishes the work to achieve, so as to show that the building owner relies on the builder's skill and judgement, the builder warrants that the work and any material used in carrying out the work will be reasonably fit for that purpose or will be of such a nature and quality that they might reasonably be expected to achieve that result. None of which mentions a timeframe. Consumer Affairs Victoria, however, tells us that: Implied warranties automatically apply to all building work, regardless of the cost or whether or not there is a written contract. These warranties transfer to a new owner for up to 10 years from completion of the work. So they are obviously relying on Section 134 of the Building Act for this. As far as I can see the notion that you are covered for structural defects for six years only and non-structural defects for two years comes from the limitations on domestic building insurance cover which is an altogether different thing. There is a lawyer on this forum - I think they are called Boutique Lawyers. Why don't you try sending her a PM and then we can all know the answer! Re: Structural/ non structural guarantee for new house 7Jul 06, 2014 2:30 pm Hi roller, This is her profile page: http://www.homeone.com.au/member/boutiquelawyers There is a send message button at the top. Re: Structural/ non structural guarantee for new house 8Jul 07, 2014 9:40 am Hello, I am writing to you to respond to some of your quieries as outlined below: 1. What is the implied guarantee by law for the building/construction? Do I need to specifically get any guarantee clause added in my contract explicitly to cover myself off for 10 years? What Liliana has posted below is correct. The domestic building contracts act implies warranties. You may sue a builder for structural defects for up to 10 years. Did the builder provide you with a pro-forma contract such as a MBAV contract? the warranties still are implied whether or not they are mentioned in the contract. 2. Is Post contract variation document a legal document.? Yes, if you have signed and agreed to the variation and if it is in fact a variation. 3. Is the builder bounded by law to offer guarantee/ warrantee even though nothing of that sort is mentioned in the contract document? Yes, it is in the Act, therefore the law is that these warranties are implied even if they are not mentioned in the Contract. Re: Structural/ non structural guarantee for new house 9Jul 07, 2014 9:58 am Thanks so much for the replies. They have been really helpful. One more question before I log off - The implied warranties are for 10 years but Lilliana also mentioned about the domestic building insurance cover.. Whats the difference between the two ? "you are covered for structural defects for six years only and non-structural defects for two years" Thanks in Advance!! Re: Structural/ non structural guarantee for new house 10Jul 07, 2014 5:59 pm roller Thanks so much for the replies. They have been really helpful. One more question before I log off - The implied warranties are for 10 years but Lilliana also mentioned about the domestic building insurance cover.. Whats the difference between the two ? "you are covered for structural defects for six years only and non-structural defects for two years" Thanks in Advance!! The builder is liable for ten years . . . but if the builder goes out of business the insurance will only pay you for the shorter period. The Harder You Try - the Luckier You Get ! Web site http://www.anewhouse.com.au Informative, Amusing, and Opinionated Blog - Over 600 posts on all aspects of building a new house. From a pure legal perspective, if you've signed the variation, it is a very high bar to have it set aside. No-one can give you legal advice on a forum, but you would need… 3 5884 5 5988 Building Standards; Getting It Right! Long story short, a toilet room is going to back onto our main bedroom and I want to make it close to soundproof. Im going to build two frames (pretty much a room within a… 0 11410 |