STATUTORY WARRANTIES – BUILDING

Statutory warranties are implied by law whether or not they are detailed in the contract. Statutory warranties require the construction to be carried out:

• in compliance with the relevant acts
• in a proper manner and in accordance with the approved plans
• using good and suitable materials
• with reasonable diligence where no completion date is specified.
• to ensure it will reasonably meet the requirements expressly made know by the owner.

Typically, statutory warranties expire at the end of a 5 year period after the date on which the certificate of completion was issued. It is important to sign the contract with the licensed builder contracted to do the work and not the company or any other person who contracted the builder. Be sure that the name of the builder appears on the contract, the statutory warranty and insurance policy. If you make an insurance claim and the name of an unlicensed company is on the insurance you have no redress with the builder.