Building (Residential Building Warranty) Amendment Act 2003 (ACT)

Building (Residential Building Warranty) Amendment Act 2003

A2003-38

Contents

Page

Part 1Preliminary

1. Name of Act  2

2. Commencement  2

Part 2Building Act 1972

1. Act amended—pt 2  3

2. Definitions for pt 6

   
   

   Section 59, new definition of completion day  3

3. Section 59, definition of ground storey  3

4. Section 59, definition of residential building  3

5. New section 59A  3

6. Statutory warranties

   
   

   Section 62 (3)  4

7. Residential building work insurance

   
   

   Section 64 (1) (c)  4

8. New sections 64 (1A) and (1B)  4

9. Section 64 (9)  5

10. Section 64  5

Part 3Building Regulations 1972

1. Regulations amended—pt 3  6

2. Regulation 18  6

3. Regulation 19  6

Building (Residential Building Warranty) Amendment Act 2003

A2003-38

An Act to amend the Building Act 1972 and the Building Regulations 1972

Notified under the Legislation Act 2001 on 8 September 2003

(see Legislative Assembly for the Australian Capital Territory enacts as follows:

Part 1Preliminary

1. Name of Act

   This Act is the Building (Residential Building Warranty) Amendment Act 2003.

2. Commencement

   This Act commences on the day after its notification day.

   NoteThe naming and commencement provisions automatically commence on the notification day (see Legislation Act, s 75 (1)).

Part 2Building Act 1972

1. Act amended—pt 2

   This part amends the Building Act 1972.

2. Definitions for pt 6
   Section 59, new definition of completion day

   insert

   completion day, for residential building work—see section 59A.

3. Section 59, definition of ground storey

   omit

4. Section 59, definition of residential building

   substitute

   residential building means a building, or a part of a building, intended mainly for private residential use if—

   (a)the building has no more than 3 storeys at any point, excluding any storey used exclusively for parking; or

   (b)for a part of a building—the part provides structural support, or is a structurally integral adjunct, to the building.

5. New section 59A

   insert

59AMeaning of completion day for pt 6

1. For this part, the completion day for residential building work is the day the work is completed or the day the contract relating to the work ends, whichever is the later.

2. Without limiting subsection (1), the work is taken to have been completed no later than the day a certificate of occupancy (if any) is issued for the work.

3. Statutory warranties
   Section 62 (3)

   substitute

4. The warranties end at the end of the period prescribed under the regulations after the completion day for the work.

5. Residential building work insurance
   Section 64 (1) (c)

   substitute

   (c)if the builder is not the owner of the land where the work is to be carried out—it insures the owner and the owner’s successors in title for the period beginning on the day when the certifier for the work receives a notification under section 37A (1) or (2) in relation to the builder and ending at the end of the period prescribed under the regulations after the completion day for the work.

6. New sections 64 (1A) and (1B)

   insert

(1A)    However, if the owner is a developer, the insurance is taken to comply with subsection (1) (c), (f), (g) or (h) if it insures the owner’s successors in title, even though it does not insure the owner.

(1B)    To remove any doubt, an insurance policy issued in relation to residential building work may exclude claims other than those in circumstances in which the builder is insolvent, dead or has disappeared.

1. Section 64 (9)

   substitute

2. In this section:

   deposit, on residential building work, means an amount that was paid or payable by the owner to the builder, under the contract to carry out the work, before the beginning of the work.

   developer, for residential building work, means a person for whom the work is done in a building or residential development where 4 or more of the existing or proposed dwellings are or will be owned by the person.

3. Section 64

   renumber subsections when Act next republished under the Legislation Act

Part 3Building Regulations 1972

1. Regulations amended—pt 3

   This part amends the Building Regulations 1972.

2. Regulation 18

   substitute

3. Cost of work—Act, s 61 (1) (c)

   The Act, part 6 does not apply in relation to residential building work if the cost of the work is less than $12 000.

4. Regulation 19

   substitute

5. End of statutory warranties—Act, s 62 (3)

6. The prescribed period for the end of the warranties is—

   (a)for residential building work in relation to a structural element—6 years; and

   (b)for residential building work in relation to a non-structural element—2 years.

7. In this regulation—

   non-structural element, of a building, means a component of the building that is not a structural element.

   structural element, of a building, means—

   (a)an internal or external load-bearing component of the building that is essential to the stability of the building or any part of it; or

   (b)any component (including weatherproofing) forming part of the external walls or roof of the building.

   Examples for par (a)

   a foundation, floor, wall, roof, column or beam

   NoteAn example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).

Endnote

Republications of amended laws

For the latest republication of amended laws, see align="center">[Presentation speech made in Assembly on 8 May 2003]

I certify that the above is a true copy of the Building (Residential Building Warranty) Amendment Bill 2003 which was passed by the Legislative Assembly on 26 August 2003.

Acting Clerk of the Legislative Assembly

© Australian Capital Territory 2003