How the Home Building Contracts Act 1991 may affect work on residential properties

The Home Building Contracts Act 1991 (WA) (“the Act”) can apply to work undertaken on residential properties.

If an electrical contractor:

• forms a contract for the performance of home building work (including altering, improving, or repairing a dwelling); 
• the contract is entered into with the home owner; 
• the contract is fixed price; and 
• the contract price is more than $7,500 but less than $500,000, 
  

...the Act will apply, which imposes various obligations on electrical contractors. 

For instance, where the Act applies, you cannot request from customers a deposit exceeding 6.5% of the contract price and the contract must not contain a “rise and fall” clause. 

Likewise, you are required to give customers a prescribed notice explaining the Act and its key provisions. This notice can be found here.

Failure to comply with the requirements of the Act can expose you to a risk of fines and/or termination by the customer. 

Disclaimer: This summary is a guide only and is not legal advice. For further information on the Home Building Contracts Act 1991 (WA), call NECA Legal (WA) Pty Ltd on (08) 6241 6129 or email necalegalwa@ecawa.org.au.