Victorian Consolidated Legislation

House Contracts Guarantee Act 1987 - SECT 6

Guarantees

6. Guarantees



(1) The approved guarantor gives under this Act a guarantee in relation to the
following types of domestic building work:

   (a)  The work by an approved builder of constructing a dwelling-house under
        a domestic building work contract;

   (b)  The work by an approved builder of constructing a dwelling-house that
        is sold by the builder under a contract entered into with a purchaser-

   (i)  during the guarantee period; or

   (ii) after the issue of a conditional certificate of guarantee under
        subsection (3);

   (c)  The work by an owner builder of constructing a dwelling-house that is
        sold by the owner builder under a contract entered into with a
        purchaser-

   (i)  during the guarantee period; or

   (ii) after the issue of a conditional certificate of guarantee under
        subsection (3);

   (d)  The work by an approved builder of improving a building under a
        domestic building work contract;

   (e)  The work referred to in paragraph (d) of the definition of domestic
        building work in section 3(1) and performed by an approved builder
        under a domestic building work contract;





   (f)  The work of a class prescribed for the purposes of the definition of
        domestic building work in section 3(1) and performed by an approved
        builder under a domestic building work contract;

   (g)  The work by a person or persons of performing domestic building work
        under the management or supervision of an approved supervisor under a
        supervision contract, if a guarantee is not otherwise given under this
        Act in relation to that work.

(1A) The approved guarantor gives under this Act a guarantee in relation to
the work by an approved supervisor of managing or supervising the performance
of domestic building work under a supervision contract unless all of that
domestic building work is performed by an approved builder under a domestic
building work contract.

(2) The guarantee referred to in subsection (1) or (1A) is to be taken to have
been given-



   (a)  in the case referred to in paragraph (a), (d), (e), (f) or (g) of
        subsection (1) or subsection (1A) on the domestic building work
        contract or the supervision contract being entered into; and

   (b)  in the case referred to in paragraph (b) or (c) of that subsection, on
        the completion of the contract for sale.

(3) The approved guarantor may issue a conditional certificate of guarantee in
the case of a dwelling-house constructed by an approved builder or an owner
builder and intended to be sold by the builder, stating that the guarantee
will come into force on the completion of the contract of sale.