Builders and plumbers need new subbie contracts prior to the new legislative regime of 1 July 2026

In fact, you need them ASAP!

Why?

The building and plumbing commission will soon (1 July 2026 onwards) have powers to order a builder or plumber to return and fix anything they determine is defective.

These are the new powers referred to as ‘rectification orders’ that allow homeowners to make a complaint about domestic building work and the BPC to make a decision.

No court, no tribunal just the commission ordering you.

And the big kicker, is that if an order is granted you will need to undertake that in a relatively short timeframe. If you fail you can face license suspension and bigger enforcement issues.

This is a seriously big change for the industry and you need to be ready not just in practice but in your contracts.

So, what’s needed with your contracts?

Well, if you have subcontracted the work that is defective, and the subcontractor won’t return in the timeframe imposed on you by the commission, YOU the builder or plumber will be obligated to do that yourself or arrange to pay for the cost of rectification.

Basically, if YOU are ordered, you will be lumped with the time and cost of rectification.

Sure, you can ask the commission to order some other person to rectify the work but the whole idea of the new system is to make it simple for homeowners to complain about defective works and for the builder to be ordered to return. This is consistent with the warranties under the Domestic Building Contracts Act.

If a complaint is made against you, as a builder or plumber, you should certainly draw the commission’s attention to another subcontractor, but remember, if a rectification order is made against you, it is your obligation to deal with it.

If you are not addressing this issue now, you are going to have big problems as a builder under the new system.

Many good builders have very few complaints, but let me assure you, the new system will be no cost to homeowners, very easy to make claims and even good builders will be dealing with complaints at the commission under the new system.

Our solution is clear:

• contractual terms with subcontractors that require them to return and fix defective work is necessary; and

• given the likelihood of tight time frames to return and rectify it is critical that your subcontractor agreement requires the subcontractor to fix the works in a reasonable timeframe allowing for your inspection; and

• if they fail, the right for you to recover a debt from them.

Without these new contract contractual provisions, how will you have a leg to stand on downstream with your contractors?

Basically, builders and plumbers need to back to back their contractual terms with subbies to reflect a new regime.

Got a domestic building question, email me at blair@bulawyers.com.au.

This article is a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Tagged as:

• building disputes