NSW building laws will expose consumers to dodgy building work: Opposition

New building laws will leave property owners with fewer protections and expose them to potentially shoddy work, the New South Wales Opposition says.

Legislation taking effect today introduces 12-month prison sentences for builders who repeatedly perform unlicensed construction work.

The new laws also change licensing rules to crack down on so-called phoenix companies, which resurface under a new trading name after going broke.

General construction work worth less than $5,000 can now be done without a licence, but specialist work including plumbing and electrical jobs still need a licence, no matter what the cost.

That change brings NSW into line with Victoria, WA and Tasmania, the Government said.
Labor's fair trading spokeswoman Tania Mihaluik said that change could expose consumers to greater risks from general construction projects in their homes.

"These backward steps are opening the door to unqualified and unskilled labour coming into consumers' homes and potentially working with asbestos, lead and other dangerous materials commonly found in households," she said.

"These changes are ill considered, with the Baird Liberal government having not consulted with associations or tradespeople within the industry."

Ms Mihaluik said she was also concerned that under the new laws homeowners would only have two years, instead of six, to pursue claims against shoddy work and building faults unless the fault is deemed a "major defect".

Owners Corporation Network of Australia executive officer Karen Stiles said the changes could see homeowners slugged with bills for repairs that stemmed from builder errors, with no avenue to recoup the money from developers.

"The new rules for major defects make it basically impossible for homeowners to meet the test," she said.

"What might be a hairline crack in year two could grow into something far more serious by year five."

She warned that homeowners would continue to fight the new laws.
"The Government seems to forget that homeowners are voters, and there is an election coming up," she said.

But Fair Trading Minister Matthew Mason-Cox said the new laws sent a strong message to the industry.

"People have been stung time and time again by building companies that simply haven't performed and have run away from their obligations," he said.

"So this, for the first time, will ensure that those people who hide behind these companies will be held accountable and the warranties that apply will actually continue to apply despite those types of practices.

"We have clarified the definition of major defects and included for the first time waterproofing and fire safety systems. And this is an area where there's been a lot of litigation and problems.

"So we have clarified that six years' protection will apply for waterproofing and safety systems and minor defects will be covered up to two years."


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