Under the Building Act 1972 (ACT) s 58C(1) and Building Act 2004 (ACT) s 88(1), statutory warranties are implied into every contract for sale of a residential building regardless of whether the builder is a party to that contract; the requirement that the builder be a party applies only to contracts to carry out residential building work. Further building works carried out by a builder during the warranty period to repair defects must themselves comply with the statutory warranties, and a continuing course of failed repair work constitutes a continuing breach running up to the expiry of the warranty period. A contract of employment between a developer and an employee-builder under which the builder carries out residential building work constitutes a 'contract to carry out residential building work' within the meaning of the legislation.
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