Partnership in Business Building: What You Need to Know
It is safe to say that builders are very much aware of the Building Act of 1993. The changes made for this specifically state that there are provisions that apply to partnerships when carrying out building work, and the responsibilities that need to be understood when in partnerships. The Building Act of 1993 states that each registered builder that performs in a partnership will also be held accountable if there was any offense made by the other member.
Any domestic building work that is under a major domestic building contract is not allowed unless the person carrying this out is registered with the VBA. However, in July 2018, changes were made and a person who is unregistered may be allowed to carry out domestic building work.
- Anyone who is in partnership with a registered builder;
- Anyone who is an employee of a registered builder and may so during the course of employment;
- Anyone who is a subcontractor of a registered builder in accordance with the contract with the registered builder;
- In the s169F of the act, an unregistered builder in partnership with a registered builder who passed away or if it becomes insolvent to complete the unfinished work and may arrange with another registered builder.
When it comes to changes made about domestic building contracts, In July 2018, it is stated that registered building practitioners in a partnership must include all the names and their addresses on the contract when they are entering a major domestic building contract to do construction or renovations, including extensions.
Also, the VBA now requires that not only the registered builder must be the right person, but each person in the partnership as well, following the personal and financial requirements, which will ensure that nobody will be excluded. A penalty or worse, ineligibility to register up to 3 years may be due to committing an offense such as entering a major domestic building contract unregistered by one or two persons in the partnership or committing an act that break what is written in the Act.
When it comes to advertising, s1691 states that registered builders that are in the partnership must display the registered building practitioner’s name, as well as registration numbers on the advertisement. Moreover, as mentioned in our previous article regarding issuing permits, the RBS or the relevant building surveyor, from July 1 this year should ensure that details regarding the entities are correct, and at the same time, they would exactly match. Additionally, the RBS must make sure that the names on the contract and the names on the warranty insurance are the same. The documents related to the building works must be provided as well. The copy of the major building contract should show all the names of the contract, including partners in the partnership. The copy of the warranty insurance is also important.