A number of the reforms are still to take effect as explained below. However, certain others commenced on 30 July 1999 and an outline of these changes is set out below. The Home Building Amendment Act 1999 was passed by Parliament in July 1999. Where a licence holder no longer has or becomes ineligible to obtain insurance, the Director-General may suspend the licence until proof is given otherwise. The regulations may also prescribe additional forms of insurance, eg, public liability insurance, which must be held before a licence can be granted or renewed.
Similar provisions apply to the supply of kit homes.
A developer will still have to give a certificate of the insurance to persona who buy dwellings in the development. At present the Director-General is able to exempt certain described in the Act. Until such time as the regulations are made these changes will have no impact for consumers or industry. The contractor remains liable to the other party to the contract for any breaches committed by the contractor. If the contractor subsequently obtains insurance cover for the work the contractor may then recover monies for work done.