DOMESTIC BUILDING CONTRACTS ACT 1995 - SECT 40 Limits on progress payments
DOMESTIC BUILDING CONTRACTS ACT 1995 - SECT 40
Limits on progress payments(1) In this section—
"base stage" means—
(a) in the case of a home with a timber floor, the stage when the concrete footings for the floor are poured and the base brickwork is built to floor level;
(b) in the case of a home with a timber floor with no base brickwork, the stage when the stumps, piers or columns are completed;
(c) in the case of a home with a suspended concrete slab floor, the stage when the concrete footings are poured;
(d) in the case of a home with a concrete floor, the stage when the floor is completed;
(e) in the case of a home for which the exterior walls and roof are constructed before the floor is constructed, the stage when the concrete footings are poured;
"frame stage" means the stage when a home's frame is completed and approved by a building surveyor;
"lock-up stage" means the stage when a home's external wall cladding and roof covering is fixed, the flooring is laid and external doors and external windows are fixed (even if those doors or windows are only temporary);
"fixing stage" means the stage when all internal cladding, architraves, skirting, doors, built-in shelves, baths, basins, troughs, sinks, cabinets and cupboards of a home are fitted and fixed in position.
(2) A builder must not demand or recover or retain under a major domestic building contract of a type listed in column 1 of the Table more than the percentage of the contract price listed in column 2 at the completion of a stage referred to in column 3.
Penalty: 50 penalty units.
TABLE | ||
Column 1 |
Column 2 |
Column 3 |
|
Percentage |
|
Contract to build to lock-up stage |
20% | |
" |
25% | |
Contract to build to fixing stage |
12% | |
" |
18% | |
" |
40% |