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- Building industry regulation - ACT
BUILDING INDUSTRY REGULATIONAUSTRALIAN CAPITAL TERRITORY |
Licensing requirements | Statutory warranties | Residential building insurance | Remedies |
In the ACT the primary pieces of legislation dealing with the regulation and licensing of the building industry are: |
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In the ACT, a residential building to which the Building Act applies is 'a building intended mainly for private residential use, or a part of a building, if: |
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Licensing requirements |
Who can obtain a licence? |
The COA Act sets out licensing requirements for construction practitioners who provide, have provided or propose to provide a construction service. A construction service is the doing or supervision of work in a construction occupation including building. A person, corporation or partnership may apply to be licensed in a construction occupation (including building). The application must be accompanied by information as to the applicant's fitness, ability and capacity to complete any work to be authorised by the licence. A licensee must have obtained appropriate certificates and have the necessary experience. The precise requirements depend on the class of licence sought by the builder. |
Can a licence be suspended? |
A licence will be automatically suspended for a period of three months in the following circumstances: |
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What disciplinary action can be taken against a licensee? |
There are a number of grounds under which the registrar can take disciplinary action against a licensee. These include: |
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Where a disciplinary ground exists the registrar may give the licensee a disciplinary notice containing details of the contravention. Subject to any dispute about the grounds for disciplinary action the registrar may take disciplinary action against the licensee which includes: |
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What is an offence under the COA Act? |
The following are offences under the COA Act punishable by fines: |
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Demerit points |
The ACT also has a system of demerit points. If a builder incurs 15 demerit points in a three year period the registrar may decide to suspend or cancel the licence or take such other action as is appropriate in the circumstances. Demerit points will be accumulated where a builder has engaged in conduct which attracts the jurisdiction of the ACT Civil and Administrative Tribunal. The number of demerit points depends on the nature of the conduct. |
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Statutory warranties |
The Building Act requires that every contract to carry out residential building work to which the builder is a party, will contain various statutory warranties regarding the manner in which the work will be performed and the materials used. These are that: |
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The statutory warranties expire six years after the completion date for work of a structural nature and two years after the completion date for work of a non-structural nature. A successor in title has the benefit of the statutory warranties for the specified period. The statutory warranties do not apply to work for which an owner-builder's licence has been granted. |
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Residential building insurance |
Before a commencement notice will be issued the Building Act requires a builder to make sure an insurance policy is obtained for the work. Where the principal is a developer, the insurance will comply if it insures the principal's/developer's successors in title, even though it does not insure the principal/developer. The Building Act provides that an insurance policy issued for residential building work may exclude claims other than where the builder is insolvent, dead or has disappeared. Therefore, in any other circumstance a consumer will be required to make a claim against the builder itself through the court system. |
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Remedies |
In the ACT, disputes relating to administrative issues, such as a decision not to issue a certificate of occupancy, may be brought before the ACT Civil and Administrative Tribunal. General disputes in relation to breach of contract or negligence may be resolved in a court of appropriate jurisdiction. |
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Updated 14 July 2014 |