Clause 38. Insurances
38.1 The builder must insure against:
(a) loss or damage to the building works and any goods and materials on the site relating to the building works against theft, fire, explosion, lightning, hail, storm and tempest, vandalism, civil commotion and earthquake; and (b) public liability for an amount of $10,000,000 for any one claim. (a) in the case of the building works policy, to and including the date of practical completion ; and (b) in the case of public liability policy, for the duration of the contract . 38.3 If the owner asks, the above insurances must note the names of the owner and the lending body as being in the class of the insureds under the above insurance policies. 38.4 The builder must comply with all obligations under workers compensation legislation. 38.5 If the owner asks for proof of any of the above insurance policies being in place the builder must give the owner a copy of the certificate of currency relating to the relevant insurance policy. 38.6 On the settlement of any claim under the building works policy the builder is to: 38.2 The above insurance policies must be in place before the builder commences the building works and must be maintained: (a) immediately be paid any part of the settlement moneys relating to loss suffered by the builder relating to any work that is the subject of the claim but for which the owner has not paid the builder ; and (b) carry out the reinstatement of the building works and be paid the balance of the settlement moneys for the reinstatement works. 38.7 The owner must ensure that the building works are insured from the date of practical completion .
Clause 39. Statutory Warranties
39.1 To the extent required by the Home Building Act, the builder warrants that: (a) the building works will be done with due care and skill and in accordance with the plans and the specifications attached to this contract ; (b) all materials supplied by the builder will be good and suitable for the purpose for which they are used and that, unless otherwise stated in this contract , those materials will be new; (c) the building works will be done in accordance with, and will comply with, the Home Building Act or any other law; (d) the building works will be done with due diligence and within the time stipulated in this contract , or if no time is stipulated, within a reasonable time; (e) if the building works consists of the construction of a dwelling, the making of alterations or additions to a dwelling or the repairing, renovation, decoration or protective treatment of a dwelling, the building works will result, to the extent of the building works conducted, in a dwelling that is reasonably fit for occupation as a dwelling; and
These are the warranties that are set out in the Home Building Act.
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