BUILDERS – Automatic Licence Suspension
• October 2010
BUILDING CLAIM JUDGMENT AMOUNT IS NOT PAID WITHIN 28 DAYS OF ORDER
Recent changes to the NSW Home Building Act state that, where:
(i) A court or the tribunal order, a holder of a contractor licence to pay money in respect of a residential building claim (and no stay is ordered by the court/tribunal); and
(ii) The contractor fails to pay the amount within 28 days after the due date ordered by the court or tribunal, then the contractor's licence is automatically suspended after the 28 days and stays suspended until payment is made.
FURTHER, s.99(3) of the Act states that where a licence is suspended for non-payment, a claim can be made against the contractors insurance for the unpaid amount. [Previously the contractor needed to be wound up or insolvent. That is no longer the case. Failure to pay after the 28 days referred to above is now sufficient for the insurance claim to be made].