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More protection for home builders MORE Western Australians building homes will be better protected against construction delays and cost increases under new reforms.Consumer Protection Minister Sheila McHale said that consumers who sign home building contracts worth up to $500,000 will now be able to take contractual complaints to Western Australia's independent building watchdog. The previous threshold was $200,000. "This is all about offering greater peace of mind for more Western Australians building or renovating their homes," Mrs McHale said. "The building boom has seen a big increase in complaints from people about building delays, cost increases and variations. "Currently, two thirds of homeowners cannot go to the state's Building Disputes Tribunal to resolve a contractual complaint because the cost of their building or renovating project is above $200,000, a limit introduced in 1992. "Since that time, costs associated with building and renovating have increased significantly." The Minister said restrictions on builders undertaking small building projects had also been eased to help alleviate shortages in the market. "Under the changes, builders will only need to be licensed under the Builders' Registration Act if the building work costs more than $20,000, an increase from the previous threshold of $12,000," she said. "Increasing construction costs have resulted in many patio, pergola and shed builders leaving the industry because they cannot do the work for less than $12,000. "This has had a big impact on consumers who have found it difficult to find registered builders prepared to take on these smaller building projects." Mrs McHale said the minimum limit for home indemnity insurance would also increase on July 2 from $12,000 to $20,000 to reflect the rise in construction costs and to align with the new limit on licensed building work. The changes to the Home Building Contracts Act follow a major review of home building legislation. "The Carpenter Government is making decisions for the future to create jobs and opportunities for all Western Australians," the Minister said. |
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