Residential Construction Contracts

The Act contains special provisions where one of the parties to a construction contract is a residential occupier. 

A residential occupier is defined as "an individual who is occupying or intends to occupy, the premises that are the subject of a construction contract wholly or mainly as a dwelling house".  So, someone who is having houses built to for the sole purpose of selling the properly would not be included but someone who had subdivided and intended to live in the new house would be considered to be a residential occupier.

The provisions of the Act with regards to residential occupier's include provisions as to:

• Payment Claims
• Charging Orders
• Suspension of works
• Adjudication of disputes

The rationale behind the requirements for additional information to be provided to  residential occupiers would seem to be due to a perception that they may not be as sophisticated or experienced with the building and construction process as a building contractor. 

By way of an example, if you were undertaking the construction of a house for a residential occupier you would need to:

• Include in writing in your payment claim an outline of the process for responding to the claim and an explanation of the consequences of not responding to the payment claim or not paying the scheduled amount in full. Click here for an example of the form to include;
• Be aware of the restrictions regarding charging orders and suspending work; and
• Include additional matters in the Notice of Adjudication namely a statement about the residential occupier's rights and obligations and a brief explanation of the adjudication process.   Click here for a sample form to provide to a Residential Occupier

More information can be found at section 10, section 20(3), section 31 and section 62 of the Act.