Western Australia’s Building Inspectorate has warned companies to increase their construction costs after the contract is signed as new housing requests remain at record highs.
Building and Energy Director Saj Abdoolakhan said the agency is looking into a number of complaints from homeowners about whether unexpected trade and delivery price increases on their new buildings are legal.
The WA construction guard has warned builders amid a COVID-stimulating construction boom. Recognition:Paul Oak
“While I recognize that the sudden demand for construction has caused some retail prices to rise, builders need to ensure that they are meeting their contractual obligations under the law,” he said.
Under the Home Building Contracts Act 1991, builders can make changes to their building contract if it takes more than 45 days to start work, often due to council or finance approval times.
WAtoday previously reported that people suffered unexpected costs of up to $ 100,000 after signing construction contracts.
The unprecedented construction demand was caused by a perfect storm of double federal and state building grants, construction deadlines for the granting of grants, and a labor shortage that cannot be addressed by international recruitment.
Nearly 18,000 residents of Western Australia applied for the full $ 25,000 grant between June and December 2020 – more than four times the Treasury Department’s projections.
By March 31, another 22,671 applications for the state government’s construction bonus had been received – more than three times the original estimates.