Western Australian Consolidated Acts

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HOME BUILDING CONTRACTS ACT 1991 - SECT 25C

25C .         Offence if no insurance or no corresponding cover

        (1)         A builder must not perform residential building work to which this Division applies unless —

            (a)         a policy of insurance that complies with this Division is in force in relation to the residential building work; or

            (b)         corresponding cover is provided by an approved fund in relation to the residential building work.

        Penalty: $10 000.

        (2)         A builder must not perform residential building work to which this Division applies under a residential building work contract unless the owner has been furnished, prior to a demand from the builder for any payment in relation to the residential building work including any deposit payable under the residential building work contract, with a certificate in a form approved by the Minister, that evidences the taking out of the policy referred to in subsection (1)(a) or the provision of the cover referred to in subsection (1)(b).

        Penalty: $10 000.

        (3)         Subsections (1) and (2) do not apply to a builder who performs residential building work to which this Division applies if —

            (a)         the builder performs the residential building work during a period specified in an order made under section 25I for the purposes of this subsection; or

            (b)         the builder performs the residential building work —

                  (i)         after the end of a period specified in an order made under section 25I for the purposes of this subsection; and

                  (ii)         under a building licence issued before or during that period.

        (4)         A builder is not entitled to cancel a policy of insurance that complies with this Division, or corresponding cover provided by an approved fund, in relation to residential building work solely on the basis that subsections (1) and (2) do not apply, because of subsection (3), to the builder in relation to the residential building work.

        [Section 25C inserted by No. 72 of 1996 s. 5; amended by No. 37 of 2002 s. 11 and 20.]



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