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Building Act 2004

Consumer rights and remedies in relation to residential building work - Implied warranties

362I: Implied warranties for building work in relation to household units

You could also call this:

“ Promises about good building work for homes that are always part of the agreement ”

When you have a contract for building work on a home, there are some promises that are automatically part of the deal, even if they’re not written down. These promises are called implied warranties.

The builder promises to do the work properly and follow the plans and building consent. They’ll use good quality materials that are new unless the contract says otherwise. The work will follow all the rules and laws about building.

The builder also promises to be careful and skilled in their work. They’ll finish the job by the date in the contract, or in a reasonable time if no date is given. If you’re going to live in the home after it’s built, it should be ready for you to move in when the work is done.

If you tell the builder why you need the work done or what you want to achieve, they promise that the work and materials will be suitable for that purpose. These promises are part of your contract even if something else in the contract or other laws say they’re not.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6371129.

Topics:
Housing and property > Home safety and repairs
Business > Industry rules
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Part 4A Consumer rights and remedies in relation to residential building work
Implied warranties

362IImplied warranties for building work in relation to household units

  1. In every contract to which this section applies, the following warranties about building work to be carried out under the contract are implied and are taken to form part of the contract:

  2. that the building work will be carried out—
    1. in a proper and competent manner; and
      1. in accordance with the plans and specifications set out in the contract; and
        1. in accordance with the relevant building consent (if any):
        2. that all building products to be supplied for use in the building work—
          1. will be suitable for the purpose for which they will be used; and
            1. unless otherwise stated in the contract, will be new:
            2. that the building work will be carried out in accordance with, and will comply with, all laws and legal requirements, including, without limitation, this Act and the regulations:
              1. that the building work will—
                1. be carried out with reasonable care and skill; and
                  1. be completed by the date (or within the period) specified in the contract or, if no date or period is specified, within a reasonable time:
                  2. that the household unit, if it is to be occupied on completion of building work, will be suitable for occupation on completion of that building work:
                    1. if the contract states the particular purpose for which the building work is required, or the result that the owner wishes the building work to achieve, so as to show that the owner relies on the skill and judgement of the other party to the contract, that the building work and any building products used in carrying out the building work will—
                      1. be reasonably fit for that purpose; or
                        1. be of such a nature and quality that they might reasonably be expected to achieve that result.

                        2. Subsection (1) has effect despite any provision to the contrary in any contract or agreement, and despite any provision of any other enactment or rule of law.

                        Notes
                        • Section 362I: inserted, on , by section 56 of the Building Amendment Act 2013 (2013 No 100).
                        • Section 362I(1)(a)(iii): amended, on , by section 79(1) of the Building (Building Products and Methods, Modular Components, and Other Matters) Amendment Act 2021 (2021 No 21).
                        • Section 362I(1)(b): amended, on , by section 79(2) of the Building (Building Products and Methods, Modular Components, and Other Matters) Amendment Act 2021 (2021 No 21).
                        • Section 362I(1)(f): amended, on , by section 79(2) of the Building (Building Products and Methods, Modular Components, and Other Matters) Amendment Act 2021 (2021 No 21).