New South Wales Consolidated Acts

HOME BUILDING ACT 1989 - SECT 103N

103N Guarantee Corporation may require builder to make payments or rectify work

(1) Subject to subsection (3), if a claim is made by a beneficiary under the indemnity provided by this Division in respect of incomplete or defective residential building work, the Guarantee Corporation may give reasonable directions to the builder concerned in respect of:

(a) the completion of the building work or the rectification of the defective building work, or

(b) the payment by the builder to the Building Insurers’ Guarantee Fund of any amount in respect of the completion of the building work or the rectification of the defective building work.

(2) Subject to subsection (3), if a claim is made by a beneficiary under the indemnity provided by this Division, the Guarantee Corporation may direct the builder concerned to pay to the Building Insurers’ Guarantee Fund any amount paid out of the Fund on that claim.

(3) The Guarantee Corporation may only give a direction under subsection (1) or (2) to the extent that an insolvent insurer (if it was not insolvent) would be able to require that work or supply, or require a payment to the insurer by the builder, under the relevant insolvent insurer’s policy.

(4) A builder must comply with a direction under subsection (1) or (2).

(5) The Guarantee Corporation may recover an amount to be paid by a builder under this section in any court of competent jurisdiction as a debt due to the State.

(6) A builder who fails to comply with a direction under subsection (1) or (2) is guilty of improper conduct.