What are HIA Contracts?

HIA contracts are created by the Housing Industry Association, a national organisation that represents residential builders and suppliers. These contracts are widely used in the residential construction industry and are thought to be biased in favour of the builder. HIA contracts are widely accepted by banks and financial institutions.

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What are MBA Contracts?

MBA contracts, on the other hand, are developed by the Master Builders Association, a state-based organisation that represents builders and contractors in the construction industry. These contracts are also commonly used in residential construction and are considered to be fairer to homeowners compared to HIA contracts. However, MBA contracts still have a bias in favour of the builder.

What are the Differences between HIA and MBA Contracts?

Both HIA and MBA contracts in NSW cover all aspects of a construction project, including the scope of work, completion date, and total cost. However, there are some important differences to consider. HIA contracts are more comprehensive and favour the builder, while MBA contracts provide homeowners with more opportunities to manage the work and resolve disputes. For example, the notice period to terminate an MBA contract is more than 20 days and both parties are required to meet and attempt to resolve their dispute. In contrast, the notice period under an HIA contract is only 10 days, and there is no requirement for the parties to meet and resolve their dispute.

Making the Right Choice for Your Home Building Project

When it comes to your dream home, it’s important to take your time and understand the terms and conditions of your contract. We recommend seeking legal advice and only working with builders who are willing to use the Office of Fair Trading Contract. Before you sign any construction contract, have it reviewed by a construction lawyer.

HIA vs Master Builders Contract

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