Victorian Consolidated Legislation

Building and Construction Industry Security of Payment Act 2002 - SECT 7

Application of Act

7. Application of Act



(1) Subject to this section, this Act applies to any construction contract,
whether written or oral, or partly written and partly oral, and so applies
even if the contract is expressed to be governed by the law of a jurisdiction
other than Victoria.

(2) This Act does not apply to-

   (a)  a construction contract that forms part of a loan agreement, a
        contract of guarantee or a contract of insurance under which a
        recognised financial institution undertakes-

   (i)  to lend money or to repay money lent; or

   (ii) to guarantee payment of money owing or repayment of money lent; or

   (iii) to provide an indemnity with respect to construction work carried
        out, or related goods and services supplied, under the construction
        contract; or

   (b)  a construction contract which is a domestic building contract within
        the meaning of the Domestic Building Contracts Act 1995 between a
        builder and a building owner (within the meaning of that Act), for the
        carrying out of domestic building work (within the meaning of that
        Act), other than a contract where the building owner is in the
        business of building residences and the contract is entered into in
        the course of, or in connection with, that business; or

   (ba) a construction contract for the carrying out of any work of a kind
        referred to in section 6 of the Domestic Building Contracts Act 1995
        relating to a residence other than-

   (i)  a contract where the person for whom the work is, or is to be, carried
        out is a person who is in the business of building residences and the
        contract is entered into in the course of, or in connection with, that
        business; or

   (ii) a contract where the work carried out, or to be carried out, under the
        contract is, or is part of or is incidental to work to be carried out
        under another construction contract; or

   (c)  a construction contract under which it is agreed that the
        consideration payable for construction work carried out under the
        contract, or for related goods and services supplied under the
        contract, is to be calculated otherwise than by reference to the value
        of the work carried out or the value of the goods and services
        supplied.

(3) This Act does not apply to a construction contract to the extent to which
it contains-

   (a)  provisions under which a party undertakes to carry out construction
        work, or supply related goods and services, as an employee of the
        party for whom the work is to be carried out or the related goods and
        services are to be supplied; or

   (b)  provisions under which a party undertakes to carry out construction
        work, or to supply related goods and services, as a condition of a
        loan agreement with a recognised financial institution; or





   (c)  provisions under which a party undertakes-

   (i)  to lend money or to repay money lent; or

   (ii) to guarantee payment of money owing or repayment of money lent; or

   (iii) to provide an indemnity with respect to construction work carried
        out, or related goods and services supplied, under the construction
        contract.

(4) This Act does not apply to a construction contract to the extent to which
it deals with-

   (a)  construction work carried out outside Victoria; and

   (b)  related goods and services supplied in respect of construction work
        carried out outside Victoria.

(5) This Act does not apply to any construction contract, or class of
construction contracts, prescribed for the purposes of this section.

(6) This Act does not apply to a construction contract entered into before the
commencement of this section.