The Insurance Council of Australia (ICA) wants a number of legislative changes to be made to the NSW Home Building Act.

In its submission to a review of the legislation, ICA says establishing a definition for the completion of work for subsequent purchasers of a property, separate from the one that applies to the original owner, is not practicable.

The date when a home building project is considered to be “complete” determines the beginning of the time periods for both statutory warranties and home warranty insurance.

Amendments inserted into the legislation last year defined “completion” whether or not a contract is used. The NSW Government hopes the definition will help reduce litigation.

But ICA says contractors, developers and their insurers are “entitled to know with certainty the date at which their liability… is at an end”.

ICA also says builders who move interstate should not be considered “disappeared” for the purpose of homeowners obtaining remedies under builders’ warranties.

It calls for clarification on the definitions of residential building work and for the time periods under which developers can be sued for defective work.

Developers and builders who retain units in a development should not gain under home warranty insurance for repairs in common areas of the building resulting from faults they are responsible for, ICA says.

It also calls for the clarification of the seven-year cover period for builders’ warranty insurance and issues around builders becoming insolvent.