Currently, builders and tradies insured under the Home Building Compensation Fund (previously known as Home Owners Warranty) are subject to a capped amount of insurance they can purchase each year, restricting the number of projects that can be taken on.
From 4 August 2015 new ‘open job limits’ will replace annual limits. This means that fund applicants (builders and tradies) will have a rolling insurance limit, allowing new jobs to start as current ones are confirmed as complete.
The changes are due to a new IT system that will make it easier to monitor activity undertaken by fund applicants. Projects will be monitored in real time by number and values, making it simpler for contractors to get insurance for new projects when they complete a previous project.
This means eligible builders can take on more work without requiring an insurance eligibility review.
Contractors are required to take out insurance under the Home Building Compensation Fund for jobs worth more than $20,000. Visit the Home Building Compensation Fund page on the NSW Fair Trading website for more information.