DOMESTIC BUILDING CONTRACTS ACT 1995 - SECT 13 Restrictions on cost plus contracts

DOMESTIC BUILDING CONTRACTS ACT 1995 - SECT 13

    (1)     A builder must not enter into a cost plus contract unless—

        (a)     the contract is of a class allowed by the regulations for the purposes of this section; or

        (b)     the work to be carried out under the contract involves the renovation, restoration or refurbishment of an existing building and it is not possible to calculate the cost of a substantial part of the work without carrying out some domestic building work.

Penalty:     100 penalty units.

    (2)     A builder must not enter into a cost plus contract that does not contain a fair and reasonable estimate by the builder of the total amount of money the builder is likely to receive under the contract.

Penalty:     100 penalty units.

    (3)     If a builder fails to comply with this section—

        (a)     the builder cannot enforce the contract against the building owner; but

S. 13(3)(b) amended by No. 15/2016 s. 10(1).

        (b)     VCAT may award the builder the cost of carrying out the work plus a reasonable profit if VCAT considers that it would not be unfair to the building owner to do so.

S. 13A inserted by No. 2/2000 s. 3.