Victorian Consolidated Legislation

House Contracts Guarantee Act 1987 - SECT 18

PART 3 DOMESTIC BUILDING WORK CONTRACTS

Requirements in relation to domestic building work contracts

18. Requirements in relation to domestic building work contracts



(1) The following requirements must be complied with in relation to a domestic
building work contract:

   (a)  The contract must set out in writing-

   (i)  the names of the parties; and

   (ii) the subject-matter of the contract, either fully or in summary; and

   (iia) the date of commencement of work or the method by which the date of
        commencement is to be determined; and

   (iib) the estimated date of completion of work or the estimated number of
        days from the date of commencement of work that is required for the
        completion of work; and

   (iii) the contract price or, in the case of a cost plus contract, the
        manner in which the contract price is to be determined; and

   (iv) the date of the contract;

   (aa) If the contract does not set out the date of commencement of work, the
        contract must contain a provision that the builder will use all
        reasonable endeavours to expedite the commencement of the work;

   (b)  Subject to subsection (4), the contract must comply with any
        requirements of the regulations as to the contents of domestic
        building work contracts;

   (c)  The contract, or the part of it that is in writing if it is not all in
        writing, must be signed by the builder and the building owner
        personally or by an agent authorised to act on behalf of the builder
        or building owner;

   (d)  The building owner must be given a copy of the signed contract or part
        contract (as the case requires) as soon as reasonably practicable
        after it has been signed by both parties together with any notice that
        the Minister may, by order published in the Government Gazette,
        require to be given;

   (e)  The copy of the contract or part contract (as the case requires) and
        the notice given to the building owner must (apart from signatures or
        initials) be readily legible.

(2) If a requirement of paragraph (a), (c), (d) or (e) of subsection (1) is
not complied with-

   (a)  the builder is guilty of an offence and liable to a penalty of not
        more than 50 penalty units.



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(3) If a requirement of paragraph (aa) or (b) of subsection (1) is not
complied with-

   (a)  the builder is guilty of an offence and liable to a penalty of not
        more than 10 penalty units; and

   (b)  the contract has effect as if the requirement had been complied with.





(4) The Governor in Council in the regulations may, in specifying a
requirement to be complied with as to the contents of domestic building work
contracts, provide for the exemption of a contract from that requirement if
the building owner, in such manner as is specified in the regulations, agrees
to the exclusion of that requirement.

(5) A builder must not enter into a domestic building work contract that
contains an amount or an estimated amount for a prime cost item or a
provisional sum if the amount or estimated amount is less than the least that
it could reasonably cost to supply the item or perform the work to which that
amount relates.

Penalty: 20 penalty units.

(6) A builder must not enter into a cost plus contract that does not set out
in writing a fair and reasonable estimate by the builder of the contract
price.

Penalty: 2 penalty units.

(6A) A builder must not enter into a contract that includes domestic building
work and any other work unless the contract-

   (a)  identifies which work is domestic building work; and

   (b)  sets out-

   (i)  particulars of the domestic building work to be performed; and

   (ii) the amount payable under the contract in respect of that domestic
        building work. Penalty: 20 penalty units.

(7) A contract is not illegal, void or unenforceable only because a
requirement of paragraph (a), (c), (d) or (e) of subsection (1) or of
subsection (5), (6) or (6A) is not complied with.