Victorian Consolidated Legislation

House Contracts Guarantee Act 1987 - SECT 14

Claims

14. Claims



(1) A person cannot claim under a guarantee given under this Act for loss or
damage on account of the failure of the builder to fulfil the builder's
obligation to complete the domestic building work under a domestic building
work contract unless that person, within six months of the builder ceasing
that work, notified the approved guarantor or VMIA of that failure in writing.

(1A) A person cannot claim under a guarantee given under this Act for loss or
damage on account of the failure of the supervisor to fulfil the supervisor's
obligations to complete the management or supervision of domestic building
work under a supervision contract unless that person, within six months of the
supervisor ceasing that work, notified the approved guarantor or VMIA of that
failure in writing.

(2) Except as provided by subsection (3), a person cannot claim under a
guarantee given under this Act for loss or damage on account of a defect
unless that person, within six months of becoming aware of the defect-

   (a)  notified the builder or supervisor of the defect orally or in writing;
        or



   (b)  notified the approved guarantor or VMIA of the defect in writing.



(3) Subsection (2) has no effect unless in a particular case VMIA can
establish that the failure to notify the defect in accordance with that
subsection prejudiced VMIA in dealing with the claim.

(4) For the purposes of subsection (3) VMIA is prejudiced in dealing with a
claim if-

   (a)  the defect became materially worse between the date by which
        notification of it should have been given in accordance with
        subsection (2) and the date on which notification of it was given; or

   (b)  the builder or supervisor was able on the date by which notification
        should have been given to pay the cost of rectification but was unable
        to do so at the date on which notification was given.

(5) If a person gives notice of a defect, that person is to be taken for the
purposes of this Act to have given notice of every defect of which the defect
notified is a symptom, whether or not the claim in respect of the defect that
was actually notified has been settled.