Victorian Consolidated Legislation

Building and Construction Industry Security of Payment Act 2002 - SECT 11

Valuation of construction work and related goods and services

11. Valuation of construction work and related goods and services



(1) Construction work carried out or undertaken to be carried out under a
construction contract is to be valued-

   (a)  in accordance with the terms of the contract; or

   (b)  if the contract makes no express provision with respect to the matter,
        having regard to-

   (i)  the contract price for the work; and

   (ii) any other rates or prices set out in the contract; and

   (iii) if there is a claimable variation, any amount by which the contract
        price or other rate or price set out in the contract, is to be
        adjusted as a result of the variation; and

   (iv) if any of the work is defective, the estimated cost of rectifying the
        defect.

(2) Related goods and services supplied or undertaken to be supplied under a
construction contract are to be valued-

   (a)  in accordance with the terms of the contract; or

   (b)  if the contract makes no express provision with respect to the matter,
        having regard to-

   (i)  the contract price for the goods and services; and

   (ii) any other rates or prices set out in the contract; and

   (iii) if there is a claimable variation, any amount by which the contract
        price or other rate or price set out in the contract, is to be
        adjusted as a result of the variation; and

   (iv) if any goods are defective, the estimated cost of rectifying the
        defect.

(3) For the purposes of subsection (2)(b), the valuation of materials and
components that are to form part of any building, structure or work arising
from construction work is to be on the basis that the only materials and
components to be included in the valuation are those that have become (or, on
payment, will become) the property of the party for whom construction work is
being carried out.