Commissioner for Consumer Protection, Gary Newcombe has welcomed Building and Energy’s newly published guide outlining what builders and their clients need to know about home building contract work valued between $7,500 and $500,000.
“Generally a builder cannot increase a fixed-price contract unless the reason is outside of their control, such as the consumer failing to get finance approval in time or a natural disaster holding up the build,” Mr Newcombe said.
“This means that any increases in building material prices should not be passed on to the consumer, nor should they bear the cost of delays caused by labour shortages.”
He said the guide covered the options available to consumers if they were unable to pay a legitimate cost increase, and what the law said about building work not completed within the timeframe specified in the contract.
“For consumers who believe a price increase is excessive or unjustified, or those who may have agreed to an increase before understanding their rights, advice is provided on how they can dispute the additional charges,” Mr Newcombe said.
“Guidance is given about how a builder should approach cost variations and why a consumer may have only 10 business days to dispute such an increase.”
Building and Energy urged consumers to research their rights under WA’s home building contract laws and to talk to their builders to understand the reasons for the price rise.
Mr Newcombe said consumers should also ask if there was an obligation they had not met and seek to understand why the delay was outside the builder’s control.
“It may be beneficial to get independent legal advice or to lodge a complaint with Building and Energy if the dispute can’t be resolved,” he said.
The new 2-page Building and Energy guide can be accessed at this PS News link.
