Statutory Warranties - Under Home Building Act

s 18B to the Home Building Act (HBA) implies certain warranties into residential building contracts for the benefit of consumers. These warranties imply the following terms:-  

  • work will be done with due care and skill (in accordance with the plans and specifications);
  • materials supplied will be good and suitable for the purpose;
  • materials will be new (unless otherwise specified);
  • work will comply with HBA (or any other law);
  • work will be done with due diligence within time stated (otherwise within a reasonable time);
  • work will result in a dwelling reasonably fit for occupation as a dwelling;
  • work is fit for purpose (and enables consumer to rely on contractor skill and judgment).

Some warranties are also implied into these types of contracts for the benefit of contracts such as the obligation on the part of a consumer to mitigate losses: s 18BA HBA. 

The benefit of the warranties is extended to non-contracting owners, successors in title and may even permit rights where privity of contract would otherwise be a hindrance : s 18C; D HBA.

The warranties cannot be excluded by reason of s 18G HBA.

The operation and effect of the statutory warranties under the Home Building Act is particularly important in building disputes against the contractor (and insurer where cover is engaged). 

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