New South Wales Consolidated Regulations

HOME BUILDING REGULATION 2014 - REG 62ZQ

62ZQ Reduction of liability for failure to enforce statutory warranty

(1) For the purposes of section 102 (5) of the Act, the terms of an alternative indemnity contract may contain a provision to the effect that the provider may reduce its liability, or reduce any amount otherwise payable in respect of a claim, because of a failure by the beneficiary under the alternative indemnity contract to take action to enforce a statutory warranty from the breach of which the loss covered arises, but only to the extent of an amount that fairly represents the extent to which the provider's interests were prejudiced as a result of the failure.

(2) A term included in an alternative indemnity contract under this clause does not limit the operation of any provision included in the alternative indemnity contract to the effect of a provision required to be included by clause 62ZR.