A key Term and Condition of cover with SecureBuild is the requirement of builders to insert additional clauses into residential building contracts.
SecureBuild’s Special Conditions (clauses) outline how SecureBuild’s inspections process works, and SecureBuild’s payments and dispute processes.
A builder can use a SecureBuild building contract which contains these Special Condition clauses or they may add the clauses listed below to a contract.
SECUREBUILD SPECIAL CONDITIONS
Progress Payments and Inspections
1. The provisions contained in this section, where applicable, take precedence over the other provisions of the contract pertaining to payments to the builder by the owner and the parties agree on the following terms.
2. As a condition precedent for the provision of a Home Building Compensation Certificate to the owner, the Home Building Compensation Fund provider (SecureBuild) will be entitled to independently monitor the progress of the work under this contract and have access to the owner’s property:
a. for the purpose of assessing progress claims identified below as mandatory inspection
b. at any time on reasonable notice
c. when requested by either party to inspect the work.
3. Mandatory inspections are required at the following stages:
a. Lock-up pre-lining
4. If the builder requires a progress claim payment for works undertaken for a mandatory inspection, then the contract must provide for progress claim payments to align with the mandatory inspections.
5. The builder must provide the SecureBuild Building Inspector with at least 48 hours’ notice of the requirement to attend for the purpose of a mandatory inspection.
6. The contract may, by agreement of the parties, provide for progress claims other than those required for mandatory inspections. Such other progress claim payments must be approved by the SecureBuild Building Inspector and must comply with the percentage rates as notified by SecureBuild.
7. The parties agree that any progress claim payment, whether requiring a mandatory inspection or not, will not be paid by the owner until approval for payment is provided to the owner by the SecureBuild Building Inspector.
8. Notwithstanding any other provision of this contract, the parties agree that if a SecureBuild Building Inspector notifies the owner not to pay a progress claim payment until further work is completed, or defective building work is rectified, then non-payment of the progress claim will not be a breach of the contract.
9. The owner must pay the progress claim to the builder within 5 business days from the date of approval by the SecureBuild Building Inspector, or such time as agreed by the parties and the SecureBuild Building Inspector.
10. Payment of a progress claim by the owner without prior notification of approval by the SecureBuild Building Inspector may prejudice the rights of the owner under the SecureBuild policy.
11. The parties agree to pay SecureBuild the fee for any inspection undertaken by the SecureBuild Building Inspector other than the mandatory inspections, at a rate of one hundred and fifty dollars ($150.00) per hour plus GST. The party requesting the inspection will be liable for the fee payable for the inspection unless otherwise agreed.
The owner may engage SecureBuild to arrange inspections for the purpose of the assessment of progress claims other than the mandatory inspection progress claims. Such inspections will be paid for by the owner at the rate of one hundred and fifty dollars ($150.00) per hour plus GST.
1. The parties may request, by agreement or otherwise, the engagement of the SecureBuild Building Inspector for the purposes of informally resolving a dispute in relation to the work under the contract.
2. The engagement of the SecureBuild Building Inspector under this section, does not create a legally binding or confidential agreement with either or both parties for the purposes of the dispute, any future dispute or any other action that arises from a dispute under the contract or any other applicable law.
3. The parties agree to pay SecureBuild a fee for the engagement of the SecureBuild Building Inspector under this section, at a rate of one hundred and fifty dollars ($150.00) per hour plus GST.
SecureBuild Building Contract (PDF download and print version)
We recommend that all homeowners check their building contract to ensure that these clauses have been added.