Queensland Consolidated Acts

DOMESTIC BUILDING CONTRACTS ACT 2000 - SECT 11

(1) A cost escalation clause is a provision of a domestic building contract under which the contract price may be increased to reflect--

(a) increased costs of labour or materials; or

(b) increased costs caused by delays--

(i) in providing the contracted services; or

(ii) if the contracted services consist of managing the carrying out of the subject work--in carrying out the subject work.

(2) However, a cost escalation clause does not include a provision allowing for an increase in the contract price to reflect--

(a) cost increases resulting from the introduction of new, or changes to existing, government taxes or charges; or

(b) prime cost items; or

(c) provisional sums.