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Department of Commerce
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Table of contents
Moving in.................................................................................. 10
Further assistance.................................................................... 12
Building your new home is very
exciting and there is much to available. You may wish to consider
think about. Use this brochure as seeking the services of a mortgage
a checklist and tick each box as broker or an independent financial
you go. adviser.
2
subdivision approvals that might Are you fully aware of the extent of
prevent the builder lodging plans site works that will be required for
with the local authority? work such as tree removal, levelling,
retaining walls, removal of clay
Have you checked with the local
or rocks, extra drainage etc? The
authority whether there are any
cost of site works may be affected
future subdivisions, road changes,
by the house design or soil type
or any special building conditions or
and it might be advisable to obtain
covenants that apply?
a soil report. Ring the Builders’
If the block has a strata title, have Registration Board on 9476 1200
you checked with the local authority for a free copy of the Board’s leaflet
whether there are any special Site investigations before buying a
building requirements? block of land or building a house.
Have you checked with the local Are you sure the land parcel
authority how much the rates are? described on the purchase contract
is the one you viewed? Check the
Have you checked with the housing certificate of title with Landgate.
sales consultant about the block
size, shape and aspect to make sure Have you obtained free copies of the
it will accommodate your planned Real Estate and Business Agents
home? Consider the desired Supervisory Board’s publications
orientation, and that frontages (available from the Department of
and clearances are sufficient to Commerce - Consumer Protection
meet local authority planning Division):
requirements. Also, think about the • Buying vacant land; and
need for retaining walls. • Sale by offer and acceptance?
Have you checked the availability of Have you checked whether the local
gas, water, sewerage and electricity? authority produces a brochure to
In new areas, check whether help new home buyers in the area?
sewerage has been connected to
Have you read the department’s free
a main or whether it is collected in
publication Homebuyers’ Survival
a tank near the block, and emptied
Guide for WA which has tips for
by truck at intervals. Check that gas
building a home? Contact us to
pressures in the area meet your
request a copy.
needs.
3
Getting ready to build
Have you developed a simple filing Do you fully understand what is and
system to keep a proper track of what is not included in the price?
events? There is always a lot of Get everything in writing, including
paperwork involved in building a these types of features:
home, particularly with house and
land packages. • paths and driveways
• crossover
Have you visited a few display • carport floor
homes by project builders and • garage doors
also individual homes built by non- • fencing
project builders so that you really • retaining walls
understand the different options? • hot water service (including
Seek clarification about special details of type and size)
offers. • gas supply
• light fittings
Are you happy with the type and • quantity and location of power
dimensions of the materials to be points
used, for example, the thickness of • television antenna and outlet
the floor slab, type of bricks to the • garden taps
inside walls, roof framing, roof tiles, • window locks
wall plaster or plasterboard finish? • flyscreens
Ask an independent expert for an • roof insulation
opinion. • vanity cupboards
If you are buying a display home, • shelving to cupboards and robes
have you checked that the model • wall painting
you are buying includes all the • floor tiling (including the laundry)
features you are expecting? If the plans were prepared to your
Remember to check the contract instructions, are you certain that no
and specifications. copyright laws have been infringed
Are you certain the design is within by you having used any part of
your budget? someone else’s design? If in doubt,
check with the Australian Copyright
Council on (02) 9318 1788.
4
Checking your plans
Have you checked out other work Have you checked all the plans
the builder has done? Ask previous and specifications thoroughly?
customers if they were happy with Make sure you fully understand
both the service received and also the plans and all of the symbols
the quality of their new home. used. If plans are drawn up in
advance of a building contract,
Are all of your chosen materials check with the local authority that
readily available? Find out when they will be approved without major
orders for ceramic tiles are placed amendments.
and whether the retailer sets them
aside for you. If you selected from a display home,
have you taken the plans along
Have you considered your options and checked the features and the
for termite prevention treatment? measurements of rooms and fixtures
Read the department’s fact sheet installed?
Termites and your home.
Have any changes or any extras that
The builder is required by law to may have been offered or agreed
provide ‘Builders’ All Risk’ and to by the builder’s sales consultant
‘Public Liability’ insurance cover been included on the plans or in the
while your home is being built. Have specifications?
you checked that your builder is
providing this cover? Have all of your selected materials
and design changes been
Has the builder asked you to included in the drawings and/or
sign a document yet or pay any specifications? Variations made
deposit? First, check the document after the contract is signed may
very carefully. Do not accept any incur an extra fee.
statement by the salesperson that
you can change your mind later Are the locations of power points,
without penalty, unless this is clearly taps, light fittings, gas and TV fittings
written on the document and is exactly as you require?
signed by the salesperson. Ask for a Have you checked the total cost of
copy of the department’s fact sheet any changes you have made to the
Understanding the ‘Preparation original plans?
of Plans Agreement’ and the
‘Preliminary Work Contract’. Are you still certain that you are able to
meet the total financial commitment?
5
Before you sign the
building contract
Have you read, checked and Do you intend carrying out any
understood all of the contract particular construction stage
documents thoroughly? Insist on yourself? If so, have you checked
the use of a recognised form of the contract conditions in respect to:
building contract, such as those • time delays resulting from your
published by the Housing Industry involvement in construction;
Association and the Master Builders’ • effects on the overall warranty of
Association. In addition to the Form the building; and
of Contract, the contract documents • whether you need to obtain a
usually include a Schedule of separate owner builder licence for
Particulars or an Appendix, any of the work that you perform?
Plans and a Specification. If you
don’t understand any part of the Do you intend to provide any
documents, ask questions and materials for inclusion in your home,
seek your own legal advice. Make such as spa, kitchen equipment
sure that you understand what or light fittings? If so, have you
your contractual obligations are, as checked whether the builder’s
well as your builder’s. If you want insurance covers the loss or theft
anything changed, this is the time of these materials from the site or
to do it. damage after installation? Check
that the piping, cabling etc is of
Have you checked to ensure the sufficient rating/capacity to run the
contract is not ‘Cost Plus’? If you are appliances, as part of an integrated
contemplating signing a ‘Cost Plus’ system, before the house is built.
contract, you should be fully aware
of the consequences. Check with a Have you checked the dates or time
building consultant, such as another periods that the fixed contract time is
independent registered builder. scheduled to start and finish?
Does the contract require the Have you established what your
release of progress payments at rights and the builders’ rights are
various stages of construction and, if if the builder should over-run the
so, are the terms satisfactory to you original contract construction time?
and to your finance provider?
6
Are there any allowances for Have you read the Notice for the
‘Provisional Sums’ and ‘Prime Cost Home Owner (which is applicable if
Sums’ and, if so, do you understand your home is under $500,000) that
the meanings of the terms? Do you was handed to you by your builder?
know how the amounts that you If you still have any questions about
will actually pay to the builder will your rights and your obligations
be calculated? If you are uncertain, under the Home Building Contracts
ask the builder or an independent Act 1991, obtain independent advice
building consultant to explain it to before you sign the building contract
you. or pay any deposit.
Has the builder included in the Has your builder provided you
contract the price for fixing the items with a Home Indemnity Insurance
covered by ‘Prime Cost sums’, not certificate, in your name, before
just for supplying them? For tiles asking you to pay any deposit?
and tiling, check how many square Ask for a free copy of Consumer
metres are included and ensure this Protection’s fact sheet Home
is stated in the contract documents. indemnity insurance.
What deposit have you been asked
Are you unhappy with anything to pay? The maximum deposit is 6.5
that is included in the contract per cent of the contract sum if the
documents? If so, ask for changes value of the home building contract
to be made. Any changes must be in is between $7,500 and $500,000.
writing and signed by both parties.
Has confirmation of Government
Are the contract documents fully or other financial assistance been
completed? There should be no received (if applicable)?
blank spaces and the contract
should include everything that
has been discussed. Check the
Schedule of Particulars very carefully
and make certain that nothing is
left blank. Ask for a copy of the
department’s fact sheet Home
building - Home Building Contracts
Act 1991.
7
Before construction starts
Has the contract been signed by Has your builder provided you with
both parties? a copy of the ‘Builders’ All Risk’
Has the builder supplied you with a and ‘Public Liability’ insurance
complete, signed set of the contract certificate?
documents? The following should be
provided to you as soon as possible Once construction starts
after the contract has been signed:
Have you been given the name
• Form of Contract with a and phone number of your contact
Schedule of Particulars or an person in the builder’s office? If
Appendix; practical you should try to deal only
• complete set of plans; and with that person.
• written specification of
Have you confirmed all important
workmanship and materials.
agreements or comments in writing
Have you provided proof of your during the home building period?
ownership of the land to your
Have you arranged to check the
builder?
work on-site regularly yourself?
Has local authority and Water Regular visits to the site are
Corporation approval been received essential but make sure you do
by your builder? not inconvenience any of the
tradespeople. Take a spirit level
Has the developer’s approval (if and a tape measure with you and
applicable), been received by the make certain the builder is working
builder? to the most up to date plans. Check
Has confirmation of finance approval that the colours of materials used
been received? Your builder may are as selected, including bricks
request a copy of the finance and paving. If regular visits are not
approval. possible or if you are not certain
what you should be checking, it may
Has the builder invited you to be worthwhile for you to employ an
attend a ‘Pre-Start’ meeting? At that independent building consultant.
meeting you will be asked to make a
number of important decisions about Have you received a claim from the
the types of materials and fittings builder for a progress payment?
and about colours. If you must make Carefully check that the work
any last minute changes, make is properly completed up to the
them now and not after construction appropriate stage.
starts unless the contract has been
amended appropriately.
8
Are you aware that, for your Has the builder advised you that
protection, you should deal only with the home has reached “practical
the builder and builder’s supervisor completion”? Check every aspect
on-site and not the tradespeople to ensure you are satisfied and the
on-site? home is habitable. You can then
hand over the final payment (even
Have you arranged to take if there are a few minor outstanding
photographs of the work at regular items, but make certain you provide
intervals, particularly any part of the a list to the builder). Remember
work that may be of concern to you? that you have made a financial
commitment to your builder to pay
Have you purchased a diary
in accordance with the conditions of
to record all of the day-to-day
the contract prior to obtaining your
happenings, including discussions
house keys.
with your builder? You should record
the time and date of all telephone Remember, the builder has a legal
conversations as well as the name responsibility to ensure that the building
of the person you spoke to and what work is carried out in a proper and
was discussed. Discuss with the workmanlike manner.
builder any queries or problems you
may have about delays, quality of The builder is liable to make good,
workmanship, or any other issues without additional cost, defects in
as soon as they arise. For anything the home building work notified in
other than a very minor problem, writing within 120 days from practical
consider confirming your views in completion. The builder is also
writing to the builder as this may responsible for structural defects for
assist you with clarifying the issue six years from the time the building is
at a later time. If you are unable completed.
to resolve the problem, read the
department’s fact sheet Home The Building Disputes Tribunal is able to
building - complaints, disputes and adjudicate on a workmanship complaint
appeals. provided the complaint is received prior
to the expiration of six years from the
date the building work was completed.
9
Moving in
10
Important information you need to
know about being an owner builder
11
Further assistance
At all times you should try to resolve Housing Industry Association (HIA)
any problems or disputes with your
Advice on contract, legal obligations,
builder in the first instance.
technical queries and concerns
Staff at Consumer Protection can Consumer Line: 1902 973 555
provide information or refer you to (calls charged at $2.75 per minute)
the appropriate authority if you have
22 Parkland Road
any queries relating to home building
Herdsman Business Park
or renovation work. However, in
OSBORNE PARK WA 6017
the interests of competitive trading,
Consumer Protection cannot Website: hia.com.au/hia/region/WA.aspx
recommend a particular trader or advise
you whom to avoid. Master Builders’ Association
12
Consumer Protection Advice Line 1300 30 40 54
(for the cost of a local call statewide)
8.30am - 5.00pm weekdays
Forrest Centre
219 St Georges Terrace
Perth Western Australia 6000
Locked Bag 14 Cloisters Square Western Australia 6850
Administration: (08) 9282 0777 Facsimile: (08) 9282 0850
National Relay Service: 13 36 77
Website: www.commerce.wa.gov.au
Email: consumer@commerce.wa.gov.au
DP099351/ May 09/ 6500