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Contractual Obligations In Light Of NCC 2022

In light of the new National Construction Code 2022 (NCC 2022), parts of which came into effect from 1 May 2023, are you ensuring that you are aware of what your contractual obligations are?

Each state or territory implements the NCC through its regulatory framework covering building and plumbing work. These changes place additional responsibilities on all builders, developers, and tradies.

When entering into a contract (or subcontract), each party must be aware of their obligations and responsibilities under NCC 2022 and the contract that they are taking on board.

This will have a follow-on effect on the materials that you contract to supply/receive.

Builders will need to ensure that all documentation they receive from other contractors or subcontractors, including designs and test certificates, is aligned with the NCC 2022. It is important to carry out a ‘health check’ of all your compliance documentation to ensure it meets the new requirements. In some cases, they may require amending to be valid.

Among the new obligations is included a push for more energy-efficient homes. As such, you will need to turn your mind to, and accommodate, better insulation in your contractual documents and consider the performance of windows and solar panels where needed. The minimum level of thermal performance of new homes is to be raised to the equivalent of 7-stars under the National House Energy Rating Scheme. Your contract documents will now need to reflect this depending on the site or location of the build, in order to comply with the energy requirements.

NCC 2022 also places emphasis on improving accessibility and provides specific measurements for constructions of hallways and doors. Standard size hallways and doors previously relied on by builders will no longer be compliant under the new regime. Have you checked whether these obligations have been passed on to you under the contract that you have entered into?

Where, as part of a contract, an owner is to select particular materials or products, you must ensure they comply with NCC 2022. Where a builder engages a subcontractor to install particular product the onus is on the builder to ensure that the materials, products, and method of installation are in line with NCC 2022 and its objectives. These extra requirements will no doubt reflect on the costs of any contract.

Where an owner wishes to construct a hallway or door in a particular way, they must consider the expressed provisions of the NCC 2022 and its objective of improving accessibility.

Such legal obligations will almost without a doubt be passed onto the installer/ supplier. The question is, are you reading and understanding what contractual (and therefore legal) obligations have been placed on you?

Ensure that in any contract that you enter into you:

• Understand what your obligations are;

• Are clear on which relevant Standard and/or Code is relied upon;

• Have sufficient details in all respects.

If you are unclear, obtain formal verification prior to signing and confirm that all works required of you in the contract are within your expertise.

If you require any legal advice or assistance for personal and/or commercial matters, get in touch with Adams & Partners, Lawyers at multiple locations on (02) 4721 6200 or visit www.adamslawyers.com.au
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