ASSESSMENT TASK CLIENT RIGHTS & OBLIGATIONS
PREPARE A STEP BY STEP PROCEDURE TO ADVISE THE CLIENT OF THEIR SA CONTRACT
TO BUILD.
Using the material provided and the Consumer Building Guide (Refer Sundry Items) and
Australian Building and Construction processes as a base,
Prepare a process to advise the client of the following:
A. In point form List what -
1. Licensing would be required by the builder and tradespeople to build their
home
2. what the builder actually does.
B. Explain what the Home Wa
anty Insurance is all about, who applies for it, when and
what it should cover.
C. In point form
1. Provide a
ief summary of the Development Application Process
2. what Regulatory Compliances need to be adhered to.
3. Explain the role of the Accredited Certifier and the Principal Certifying
Authority.
4. Explain what the Statutory Wa
anties are and how they apply to the
contract.
D. Explain in point form
1. why and when a contract is necessary.
2. Nominate what type of building contract will be used
3. explain the clients rights and obligations regarding the building contract
and
a. Prime Cost Items
. Variations
c. Progress Claims & Payment of Claims
d. Dispute Resolution
This guide has been developed by the Queensland
Building and Construction Commission (QBCC) under
Schedule 1B of the Queensland Building and Construction
Commission Act 1991 (the Act) to assist home owners
undertaking domestic building work with a total contract
price of $20,000 or more. It’s aimed at helping you avoid
disputes and common pitfalls.
COOLING-OFF PERIOD
You may withdraw from the contract within five business
days of receiving copies of the signed contract (including
any plans and specifications) and this guide. However,
there are costs for home owners in withdrawing (generally
$100 plus any out-of-pocket expenses reasonably incu
ed
y the contractor up to the time of withdrawal). You must
also advise the contractor in writing.
QBCC LICENCE
You should only deal with a QBCC-licensed contractor.
If you engage an unlicensed contractor, your building
work may not be covered under the Queensland Home
Wa
anty Scheme. Always check the contractor’s licence
and licence history via QBCC’s Online Licence Search.
QLD HOME WARRANTY INSURANCE
Residential construction work valued at more than
$3,300 is covered by the Queensland Home Wa
anty
Scheme. It provides protection for home owners against
non-completion, defective work and subsidence for up to
6 years from completion, provided a licensed contractor
performs the work. After the contract has been signed, the
contractor must pay the insurance premium to QBCC, and
you should receive a Certificate of Insurance and Policy
Booklet within two weeks.
COST PLUS AND CONSTRUCTION
MANAGEMENT CONTRACTS
QBCC recommends home owners obtain formal legal
advice before signing either of these types of contracts
which reduce your Home Wa
anty insurance protection
and often result in disputes and cost ove
uns. Visit the
QBCC website for more details on the risks associated
with these contracts.
COMMENCEMENT NOTICE
For contracts priced at $20,000 or more, the contractor
must give the owner a signed Commencement Notice
within 10 business days of work commencing on site.
It must state the date work started on site and the Date for
Practical Completion.
CONTRACT PRICE
The total contract price must be stated on the first page of
the contract schedule. For contracts priced at $20,000 or
more, the contract must also contain a warning about any
provisions that may cause the contract price to change
and if the contract price includes any allowances (items
or services for which the price is not fixed at the time the
contract is signed), these allowances must be stated in the
contract schedule.
DEPOSITS AND PROGRESS PAYMENTS
The maximum deposit allowed is:
• 10% where the total contract price is under $20,000
• 5% where the price is $20,000 or more
• 20% for a contract of any price where the value of the
work to be performed off-site is more than 50% of the
total contract price.
Owners and contractors are free to determine the
number and timing of progress payments (if any) for
their particular project, provided these payments are
proportionate to the value of work performed on site
(e.g. don’t pay more than 50% before half of the work
has been completed).
BUILDING APPROVALS AND INSPECTIONS
Building inspections and approvals are the responsibility of
a building certifier. Mandatory building inspections may be
equired at certain stages of construction. You can check
the certifier’s licence via QBCC’s Online Licence Search.
VARIATIONS
Any change to the materials used or the scope of the
work to be performed under the contract is known as
a ‘variation’. Variations are frequently the cause of cost
ove
uns and building disputes. All variations must
e detailed in writing and copied to the owner by the
contractor within five business days after they are agreed
to, and before any of the variation work commences.
DISPUTE PREVENTION
To reduce the risk of a dispute, carefully read and
understand the contract. Also check any associated
plans and specifications before signing. Discuss any
questions with your contractor and seek legal advice
if you still have concerns.
CONSUMER BUILDING GUIDE
Your building contractor must give you this guide before you sign the contract.
DISPUTE RESOLUTION
If a dispute with your contractor occurs, firstly advise
them in writing giving them a reasonable time to respond.
If this doesn’t resolve the problem, explore QBCC’s free
Early Dispute Resolution (EDR) service and your legal
options. It’s critical that you engage a practising solicitor
efore terminating the contract. Inco
ect termination may
have serious legal and financial consequences and reduce
your Home Wa
anty protection.
EXTENSIONS OF TIME (EOTs)
The contract must state the Date for Practical Completion
for your project, or how the date is to be determined
(e.g. 180 days from commencement). The Act sets out
circumstances in which a contractor may seek to extend this
date (e.g. if you approve a variation to the contract which
involves extra work, or the work is inte
upted by more rain
than could have been anticipated).
The contractor must give you a written EOT claim that you
should carefully consider (not unreasonably reject) and
espond to promptly in writing. If you approve the claim,
the Date for Practical Completion will be extended by
the period claimed. If you do not approve the claim, the
extension is deemed ‘disputed’.
PRACTICAL COMPLETION AND HANDOVER
You are not required to pay the final contract payment
until all of the contracted work has been completed in
accordance with the contract, all legal requirements, and
either without any defects or omissions, or with only minor
defects or minor omissions that will not unreasonably
affect occupation. If you believe there are any minor
defects or minor omissions, the contractor must give
you a ‘defects document’ (listing agreed and non-agreed
matters). This document should be compiled by you and
the contractor during a handover inspection. Check your
contract to see if it imposes any extra requirements on the
contractor for practical completion.
IMPLIED WARRANTIES
Under the Act, a range of wa
anties are deemed to be
part of all regulated domestic building contracts. The
wa
anty period is six years for structural defects and one
year for all other defects.
Quick checklist (Ensure you are able to tick all boxes below before signing the contract)
I have read this Consumer Building Guide
I have read and checked all contract documents, including the schedule, general conditions and special conditions
(if any) and all plans and specifications
I have checked the contractor’s licence and licence history on the QBCC Online Licence Search at qbcc.qld.gov.au
I note and understand my cooling-off rights (including how and when I may withdraw if I choose to)
I have checked the total price (including what proportion is comprised of allowances) and I understand the deposit
and progress payments set out in the contract
I have checked the start and finish dates and practical completion requirements in the contract
(If applicable) I have discussed my questions/concerns about the contract with a practising solicitor.
Acknowledgement
NAME: XXXXXXXXXXDATE:
SIGNATURE:
For further information on the building process, visit the QBCC website qbcc.qld.gov.au or call QBCC 24/7 on XXXXXXXXXX.
Prior to signing a contract view ‘The Home Owner Building Guide’ video series at youtube.com/QBCCBuildBette
Complete and sign the section below to acknowledge that you have received this guide from your building
contractor. Once signed, the building contractor will return a copy of this guide to you with the contract.
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