3.1 ABS will issue an Accredited Builder with an ABS Membership Card within 28 days of:

(a) acceptance of an application to become a Builder accredited with ABS; and

(b) payment of the Annual Fee referred to in clause 2.1(b).

4. ABS RATING SYSTEM

4.1 Under the rating system operated by ABS, an Accredited Builder will receive:

(a) one gold star for every continuous period of 10 years as an Accredited Builder; and

(b) one silver star for every period of 10 years as a participant in the Australian building industry, as reasonably determined by ABS.

5. HOW INSURANCE

5.1 Subject to payment of the applicable premium, an Accredited Builder is entitled to have HOW Insurance provided to an Owner by a General Insurer associated with ABS.

5.2 ABS is authorised under these rules to appoint an Authorised Insurance Broker to act on behalf of an Accredited Builder in relation to any application for HOW Insurance made by an Accredited Builder to a General Insurer associated with ABS.

6. OBliGATIONS PRIOR TO COMMENCING BUILDING WORK

6.1 Prior to commencing any Building Work, an Accredited Builder must:

(a) ensure that all certificates, licences, consents, permits, approvals and requirements of any organisations having jurisdiction in connection with the carrying out of the Building Work have been obtained;

(b) enter into a Building Contract; and

(c) enter into a Multiparty Deed.

7. STANDARD OF WORK

7.1 An Accredited Builder must comply with the Building Code of Australia in relation to any Building Work commenced after the Approval Date.

8. INSPECTION OF WORK

8.1 When an Accredited Builder considers that a Building Work Stage has been completed, the Accredited Builder must give ABS notice in writing that it requires an ABS Building Inspector to carry out an inspection of the Building Work relevant to that Building Work Stage.

8.2 Within 48 hours of receipt of the notice referred to in clause 8.1, ABS must procure that an ABS Building Inspector carries out an inspection of the Building Work relevant to that Building Work Stage.

8.3 Within 48 hours of the date on which the ABS Building Inspector carries out the inspection referred to in clause 8.2, ABS must procure that a Building Inspection Report is issued to all parties to the relevant Multiparty Deed.

8.4 Unless the Building Inspection Report states that all work comprising the Building Work relevant to a Building Work Stage has been completed in accordance with the Building Contract, the Accredited Builder must not submit a Payment Claim under a Building Contract for that Building Work Stage.

8.5 If the Building Inspection Report states that all work comprising the Building Work relevant to a Building Work Stage has not been completed in accordance with the Building Contract, the Accredited Builder must complete all the work stated in the Building Inspection Report prior to giving ABS a further notice under clause 8.1.

9. FURTHER BUILDING INSPECTION REPORTS

9.1 If an Accredited Builder gives more than one notice under clause 8.1 in respect of the Building Work relevant to a Building Work Stage:

(a) ABS will issue the Accredited Builder with a Further Building Inspection Invoice;

(b) the Further Building Inspection Amount will be a debt due and owing by the Accredited Builder to ABS; and

(c) the Accredited Builder must pay ABS the Further Building Inspection Amount within 14 days of the date of the Further Building Inspection Invoice.

10. TERMINATION

10.1 If an Accredited Builder breaches or repudiates these rules, nothing in this clause 10 prejudices the right of ABS to recover damages or exercise any other right.

10.2 If an Accredited Builder commits an Accredited Builder Breach:

(a) ABS may terminate the accreditation of the Accredited Builder by giving not less than seven days written notice to that Accredited Builder; and

(b) these rules will cease to have any further effect in relation to the Accredited Builder after the date stated in the notice referred to in clause 10.2(a).

10.3 If an Insolvency Event occurs in relation to an Accredited Builder party, ABS may immediately terminate the accreditation of the Accredited Builder by giving written notice to that Accredited Builder.

11. DISPUTE RESOLUTION

11.1 If there is a dispute between ABS and an Accredited Builder relating to or arising under these rules, one party may deliver to the other party a written notice of dispute adequately identifying and providing details of the dispute.

11.2 Despite the existence of a dispute, the parties must continue to perform their obligations under these rules.

11.3 If a party delivers a notice of dispute to the other party, within 14 days of delivery of that notice, representatives of the parties must meet and use reasonable endeavours acting in good faith to resolve the dispute by joint discussions.

11.4 If the dispute is not resolved in accordance with clause 11.3, either party may refer the dispute to any court of competent jurisdiction in New South Wales.

11.5 Nothing in this clause 11 prejudices the right of a party to institute proceedings to enforce payment due under these rules or to seek injunctive or urgent declaratory relief in respect of a dispute under this clause 11 or any matter arising under these rules.

12. CONFIDENTIALITY

12.1 An Accredited Builder agrees to keep confidential these rules and will not disclose or discuss any of that information without the prior written approval of ABS, except:

(a) as specifically provided by these rules;

(b) to the extent permitted or required by law; and

(c) where the information is available generally, but not if it is because a person has contravened a confidentiality obligation under this clause.

12.2 If completion of these rules does not occur, each party must return to the other or others and ensure that any person who receives information by the party's authority returns the information to the person who provided it.

12.3 The obligations of this clause survive termination of these rules.

13. ENTIRE AGREEMENT

13.1 These rules and any annexures are the entire agreement of the parties on the subject matter.

13.2 The only enforceable obligations and liabilities of the parties in relation to the subject matter are those that arise out of these rules.

13.3 All representations, communications and prior agreements in relation to the subject matter are merged in and superseded by these rules.

14. FURTHER ASSURANCE

14.1 Each party will do, sign, execute and deliver and will procure that each of its employees and agents does, signs, executes and delivers, all agreements, documents, instruments and acts reasonably required of it by notice from another party to effectively carry out and give full effect to these rules and the rights and obligations of the parties under them.

15. AMENDMENT

15.1 ABS may amend these rules at any time by giving an Accredited Builder not less than 30 days written notice of the amendment.

16. ASSIGNMENT

16.1 A party may not assign its rights, powers or remedies under these rules without the consent of the other parties.

17. WAIVER

17.1 The non-exercise of or delay in exercising any power or right of a party does not operate as a waiver of that power or right, nor does any single exercise of a power or right preclude any other or further exercise of it or the exercise of any other power or right.

17.2 A power or right may only be waived in writing, signed by the party to be bound by the waiver.

18. NOTICES

18.1 All notices required or permitted to be given by one party to another under these rules must be in writing, addressed to the other party; and:

(a) delivered to that party's address; or

(b) transmitted by facsimile transmission to that party's address.

18.2 A notice given to a party under subclause 1 of this clause is treated as having been given and received:

(a) if delivered to a party's address on the day of delivery if a business day, otherwise on the next following business day; and

(b) if transmitted by facsimile to a party's address and a correct and complete transmission report is received, on the day of transmission if a business day, otherwise on the next following business day.

19. GOVERNING LAW

19.1 These rules are governed by the law in force in New South Wales.

20. JURISDICTION

20.1 The parties submit to the exclusive jurisdiction of the Courts of New South Wales and any Court that may hear appeals from those Courts in respect of any proceedings in connection with these rules.

21. DEFINITIONS & INTERPRETATION

21.1 In these rules unless the context otherwise requires or permits:

(a) ABS means Australian Building Services (NSW) Pty Ltd ABN 43 100 773 662 of 3/11 Cahors Road, Padstow, New South Wales, 2211;

(b) ABS Building Inspector means a building inspector appointed by ABS to inspect Building Work;

(c) ABS Membership Card means a membership card in a form prescribed by ABS which includes:

(i) the name of the Accredited Builder;

(ii) the address of the Accredited Builder;

(iii) information relating to the number of stars held by an Accredited Builder under clause 4;

(iv) an identification photograph; and

(v) any other information prescribed by ABS.

(d) Accreditation Application means an application made by a Builder for accreditation with ABS in the form prescribed by ABS;

(e) Accredited Builder means a person whose application to become a Builder accredited with ABS is accepted;

(f) Accredited Builder Breach means:

(i) an Accredited Builder does not have any licence required by it to carry on Building Work in a relevant jurisdiction;

(ii) an ABS Building Inspector issues a Building Inspection Report which states that Building Work does not comply with the Building Code of Australia;

(iii) the Accredited Builder fails to pay ABS the Annual Fee within 14 days of the Approval Date;

(iv) the Accredited Builder fails to pay ABS the Annual Fee within 14 days of an Anniversary Date;

(v) the Accredited Builder fails to pay ABS the Inspection Default Amount within 14 days of the date of the Inspection Default Invoice;

(vi) the Accredited Builder fails to enter into a Building Contract prior to commencing any Building Work; or

(vii) the Accredited Builder fails to enter into a Multiparty Deed prior to commencing any Building Work;

(g) Anniversary Date means each anniversary of the Approval Date;

(h) Annual Fee means $5,000 plus GST;

(i) Approval Date means the date on which the Accredited Builder's application for accreditation with ABS was accepted;

(j) Authorised Insurance Broker means an insurance broker nominated by ABS;

(k) Builder means any person constructing new Dwellings or altering existing Dwellings in respect of which HOW Insurance is required;

(l) Building Code of Australia means the Building Code of Australia 1996 published by the Australian Building Codes Board;

(m) Building Contract means a contract between an Accredited Builder and an Owner for Building Work;

(n) Building Inspection Report means a report prepared by an ABS Building Inspector after the inspection of Building Work relevant to a Building Work Stage which:

(i) states whether that Building Work has been completed in accordance with the Building Contract; and

(ii) if that Building Work has not been completed in accordance with the Building Contract, states the work that must be completed to enable the Building Work to comply with the Building Contract;

(o) Building Work means work carried out by an Accredited Builder for the construction of a new Dwelling or the alteration of an existing Dwelling;

(p) Building Work Stage means any of the stages of Building Work set out in a Multiparty Deed;

(q) Dwelling means a building or portion of a building that is designed, constructed or adapted for use as a dwelling;

(r) Further Building Inspection Amount means $500 plus GST;

(s) Further Building Inspection Invoice means an invoice issued by ABS which sets out the Inspection Default Amount;

(t) General Insurer has the same meaning as in the Insurance Act 1973 (Cth);

(u) GST has the meaning given to that term by the GST Law;

(v) GST Law has the meaning given to that term in the Act entitled A New Tax System (Goods and Services Tax) Act 1999;

(w) HOW Insurance means a contract of insurance which complies with the requirements of the:

(i) Building Act 1993 (Victoria);

(ii) Building Act 2004 (Australian Capital Territory);

(iii) Building Work Contractors Act 1995 (South Australia)

(iv) Home Building Act 1989 (New South Wales);

(v) Home Building Contracts Act 1991 (Western Australia);

(vi) Housing Indemnity Act 1992 (Tasmania); or

(vii) any other similar legislation;

(x) Insolvency Event means:

(i) if the Accredited Builder is a company:

(A) the board of the relevant party passing a resolution under section 436A of the Corporations Act;

(B) the relevant party is placed into administration pursuant to Part 5.3A of the Corporations Act;

(C) a deed of arrangement is entered into in respect of the relevant party;

(D) an application is made to a court for the winding up of the relevant party which is not stayed, withdrawn or otherwise disposed of within 14 days of when the application is served on the party concerned;

(E) the relevant party resolves that it be wound up voluntarily;

(F) a winding up order is made in respect of the relevant party;

(G) a receiver or receiver and manager is appointed to the relevant party;

(H) a court orders that there be a meeting of creditors or members of the relevant party for any purpose related to Part 5.1 of the Corporations Act;

(I) a mortgagee takes possession of any assets of the relevant party; or

(J) the relevant party informs the other party or any of its creditors, in writing, that it, he or she is insolvent;

(ii) if the Accredited Builder is an individual, the Accredited Builder becomes an Insolvent Under Administration;

(y) Insolvent Under Administration has the same meaning as in the Corporations Act 2001 (Cth);

(z) Multiparty Deed means:

(i) a deed between ABS, an Accredited Builder and an Owner; or

(ii) a deed between ABS, an Accredited Builder, an Owner and an Owner's Financier, in a form acceptable to ABS which, among other things, modifies the terms of a Building Contract;

(aa) Owner means a person who has entered into a Building Contract with an Accredited Builder;

(bb) Owner's Financier means a person who has provided financial accommodation to the Owner for the Building Work;

(cc) party means ABS or an Accredited Builder;

(dd) Payment Claim means a claim for payment for Building Work carried out under a Building Contract;

21.2 In these rules unless the context otherwise requires or permits:

(a) where any word or phrase is given a defined meaning any other grammatical form of that word or phrase will have a corresponding meaning;

(b) references to legislation or legislative provisions will include modifying, consolidating or replacing legislation or legislative provisions;

(c) references to months and years means calendar months and years;

(d) the use of headings are only for convenience and do not affect interpretation and any headings, underlinings or marginal notes are only included for ease of reference;

(e) if any part of these rules is void or unenforceable or would be so unless severed, then the rest of the document will continue to have full force and effect;

(f) if the day on which any act, matter or thing is to be done under or pursuant to these rules is not a business day, that act, matter or thing may be done on the next business day. A business day is a day on which banks are open for general banking business;

(g) references to a person includes any other entity recognised by law;

(h) words denoting the singular number include the plural and vice versa;

(i) words denoting one gender include every gender;

(j) every covenant or provision applying to or binding more than one person will bind them jointly and each of them severally;

(k) references to clauses, subclauses, paragraphs, annexures and schedules are references to clauses, subclauses, paragraphs, annexures and schedules in these rules.