The Victorian DBI scheme is finishing up at the end of this month, and the Home Warranty scheme takes effect from 1 July. Members are reminded to ensure they are using the correct contract levers to ensure that changes or increases to their premiums are correctly reflected in your contracts.
For full information on the Home Warranty scheme please visit: Click Here
The premium must be paid prior to commencing work but can be paid after signing of the contract.
You can and should obtain a figure for the premium prior to filling out and signing the contract.
Builders will have 10 days to pay the Home Warranty insurance premium from the date the contract is signed.
The DBI premium (which will become the Home Warranty premium) is listed as a separate dollar value in your contract. Ensure this value is accurate according to the premium you are quoted for the project.
Filling this figure out beforehand could result in an inaccurate figure being included in the contract, either too high and overcharging your client, or too low and underquoting the contract.
The insurance premium is captured under the clauses which relate to variations including those required by the council/registered building surveyor. Increases in these fees, if they’re included in the contract price, can be deemed as a Variation.
Local Authority fees or other fees imposed by a person or body relevant to the work (which include State Government fees and charges) can be marked as excluded from the contract, and so they are charged on an ad-hoc basis as-and-when they are required, by simply providing the proof (invoice or similar) of the charges and their purpose.
The BPC shared that builders will see a premium increase of no more than 5% on what builders currently pay for Domestic Building insurance (DBI). SPASA is interested in hearing from builders if this is not the case.
Note: existing DBI policies continue under the DBI scheme.
A guide on using your contracts is available online: Click Here
Members with contract use and content questions can contact Ben Makepeace [email protected]
For questions relating to accessing and using the contract via the member portal, please email [email protected].