Feedback to help shape home building contract laws

• Review to progress key reforms to the Home Building Contracts Act 1991 and the Building Services (Complaint Resolution and Administration) Act 2011
• Survey responses from consumers and industry stakeholders to shape reforms
• Consultation Paper to be released early next year for public comment
• Cook Government committed to delivering sensible and effective law reform

The Cook Government has revealed key findings from survey responses that identified potential improvements to laws protecting Western Australians entering home building contracts.

Consumers and building industry participants shared their views as part of a major review being led by the Hon Dan Caddy MLC to ensure the State's home building contract laws remain fit for purpose and safeguard consumers.

A number of insights were gained through the surveys, with the key message being that the State's home building contract laws need to evolve to meet today's challenges. Other insights include:

• better guidance on rights, obligations and navigating home building contracts;
• clarity on the Building Commissioner's role in protecting consumers and supporting industry;
• more pricing transparency, with half of surveyed consumers reporting price increases after signing a contract;
• current protections lag behind costs, with financial thresholds capped at $500,000 despite rising construction prices; and
• entitlements to price increases need to be clearer, and a better balance struck for neutral delay events such as delayed building approvals and the release of land titles.

The feedback will be used to shape important proposals for reform that will be presented for public comment in a Consultation Paper early next year.

A snapshot of the survey findings is available at: https://www.wa.gov.au/organisation/building-and-energy/review-of-western-australias-home-building-contract-lawsbuilding contract laws

Comments attributed to Commerce Minister Dr Tony Buti:

"I thank everyone who took the time to provide vital input into this review. These real-life experiences with home building contracts, for both consumers and builders, will help shape reforms that balance protections for homeowners and requirements for industry.

"Entering a contract for a new home or renovation is a major commitment, so it is important to have effective legislation that ensures confidence for all parties in the contract.

"I look forward to presenting reform options in the new year as part of the Cook Government's commitment to robust building regulation and more homes for Western Australians."

Comments attributed to Parliamentary Secretary Hon Dan Caddy MLC:

"I am pleased to be leading this timely review of home building contract laws.

"The valuable feedback from homeowners and builders through the surveys has reinforced the need for a more modern and accessible regulatory framework.

"A public consultation phase early in the new year will provide further opportunities for input on these important reforms."