Issue Date:  -  Wednesday, 19 March 1997

Home Building Contracts Act 1991 tabled

A report into the operations and effectiveness of the Home Building Contracts Act 1991 was today tabled by Fair Trading Minister Doug Shave.

Mr Shave said the report was the result of a statutory review started two years after the Act came into effect in April 1992.

The Act set out the requirements for contracts between builders and home owners. It also provided a system for resolving disputes between the parties to a home building contract.

Mr Shave praised the organisations, including the Housing Industry Association of WA, the Master Builders' Association and the Consumers' Association of Western Australia, for their significant contributions to the review.

He said the report contained 69 recommendations for change. However, not all related directly to the legislation and many covered procedural matters.

"The review shows there is a need for industry and consumer education about the requirements of the Act and about the rights and responsibilities of parties involved in home building contracts," the Minister said.

He said both industry and consumer groups agreed that legislation had improved the stability of the building industry and home building standards.

The major area for concern appeared to still be dispute resolution arrangements.

Although the report recommended changes to the manner in which the current Building Disputes Committee operated, Mr Shave emphasised that there would be no changes to the current arrangements until all parties had an opportunity to comment on the recommendations. "Before agreeing to any changes, I will consult with all parties and will aim for consensus wherever possible," he said.

"I cannot emphasis enough the importance of the home building industry to the State's economy. With an annual worth of more than $1.4 billion, the WA home building industry accounts for about three per cent of the State's gross domestic product."

Copies of the report can be obtained from the Ministry of Fair Trading, 219 St Georges Terrace, Perth, tel 1300 30 40 54.

Media contact:

Anabel Gomez
Tel: (08) 9366 0300