Residential building work contracts in Western Australia are governed by the Home Building Contracts Act 1991 (the Act). If residential building work valued over $20,000 is to be undertaken, the Act requires that a builder take out home indemnity insurance in the name of the owner before accepting payment or commencing work.
In most instances, the insurance policy must cover the residential building work during the construction period and for six years from the date of ‘practical completion’ (the six year insurance period). Practical completion is when the building, extensions or renovations are completed and ready for occupation.
The Act applies to all areas of the state, however, the provisions of the Act are different when a person builds, extends or renovates their own home as an owner-builder or a builder seeks exemption to build their principal place of residence. This is explained in the ‘Owner-builder requirements’ section of this fact sheet
For the latest information please contact our office or visit the Department of Commerce website: https://www.commerce.wa.gov.au/publications/home-indemnity-insurance
Links for application forms and supporting documentation are as follows:
In most instances, the insurance policy must cover the residential building work during the construction period and for six years from the date of ‘practical completion’ (the six year insurance period). Practical completion is when the building, extensions or renovations are completed and ready for occupation.
The Act applies to all areas of the state, however, the provisions of the Act are different when a person builds, extends or renovates their own home as an owner-builder or a builder seeks exemption to build their principal place of residence. This is explained in the ‘Owner-builder requirements’ section of this fact sheet
For the latest information please contact our office or visit the Department of Commerce website: https://www.commerce.wa.gov.au/publications/home-indemnity-insurance
Links for application forms and supporting documentation are as follows:
