Know your stuff : Consumer protection (or Part 4A)
1) Does the $30,000 value of the work include or exclude GST?
ANSWER: It includes GST.
2) What kind of work do these consumer protection measures cover?
All kinds of building work to a residential house. This includes project management, retaining walls and fences, building work that does not need a consent and works done by subcontractors (electricians and plumbers for example). It does not include design work in isolation.
3) Who do these measures apply to on a project?
- the main contractor on a multi-storey commercial project
- a plumber working for the main contractor
- the homeowner's best friend
- anyone who contracts directly to the client to do residential building work.
ANSWER: Anyone who contracts directly to the client to do residential building work
4) You have to have a written contract for all building work. True or false?
ANSWER: False, while it’s not a bad idea, you are only obliged to have a written contract if the value of the work is more than $30,000 including GST.
5) Can you break down the cost of a job into smaller amounts (like $20,000) multiple times to get around these provisions?
ANSWER: No! The $30,000 (including GST) threshold is calculated based on the total of all building work being done by the building contractor for the client.