(1) The maximum amount of a deposit for residential building work is 10% of
the contract price. A
"deposit" for residential building work is a payment on account before work is
commenced under a contract to do residential building work.
(2) A person must
not--
(a) demand or receive payment of a deposit for residential building work
if the amount of the payment exceeds the maximum imposed by this section, or
(b) enter into a contract under which the person is entitled to demand or
receive payment of a deposit for residential building work if the amount of
the payment exceeds the maximum imposed by this section.
: Maximum
penalty--1,000 penalty units in the case of a corporation and 200 penalty
units in any other case.
(3) The regulations may make provision concerning
how a contract price is to be determined for the purposes of this section.
(4) This section does not apply to residential building work done under--
(a)
a contract that is made between parties who each hold a contractor licence and
is for work that each party's contractor licence authorises the party to
contract to do, or
(b) a contract to do specialist work that is not also
residential building work.
Note : The exception in paragraph (a) applies to a
subcontracting arrangement between licensees, and to a contract between
licensees for work to be done on premises that one of the licensees owns.
