Cost Plus - Residential

PLEASE READ THE FOLLOWING BEFORE COMPLETING COST PLUS CONTRACT

RESIDENTIAL BUILDING WORK The Home Building Act 1989 requires that a Builder enter into a contract in the name in which the Builder ’s licence has been issued. Details of the currency of a license may be confirmed with the Licensing Branch of NSW Fair Trading - Tel: 13 32 20 HOME BUILDING COMPENSATION FUND INSURANCE If residential building work is being done under this Contract (for example work for a consumer on a private residence or to build, alter or repair premises for people to live in) then insurance under the Home Building Compensation Fund must be taken out prior to work commencing if the contract price at the time of contracting is greater than, or expected to be greater than, $20,000.00. The Builder must ensure that the certificate of insurance is provided to the Owner . The Builder is to keep a copy for its own records. ADVICE REGARDING DISPOSAL OF BUILDING WASTE Many Councils require a waste management plan as part of the development approval. Review this carefully. For further information and advice you can contact the Department of Environment and Conservation by phoning 13 15 55, or visit the website www.environment.nsw.gov.au. Alternatively you can contact your Local Council and speak to the Waste Management Officer. The responsibility for proper waste disposal rests with everyone including Owner s and Developers. THIRD PARTY CONTRACT ADMINISTRATION If the Owner wishes to appoint an independent person or entity to administer the contract, then the contract should be amended to include specific terms and the assignment of specific duties to this third party. A special condition is available from the Master Builders Association of NSW for this situation. CONTROL OF MONEY SPENT It is highly recommended that the Owner and Builder agree that claims for payment be made and required frequently (eg every 2 weeks). The Master Builders Association of NSW believes this will enable the parties to more accurately identify and control the cost of the work and enable the budget to be kept under review. It is critical that the Owner and Builder report regularly to each other about any matters which affect the work to be done and payment for the same.

RESIDENTIAL BUILDING CONTRACT COST PLUS - MARCH 2015 - NEW SOUTH WALES (i)