Victorian Consolidated Legislation

House Contracts Guarantee Act 1987 - SECT 21

Limit on progress payments

21. Limit on progress payments



(1) In this section-

base stage, in relation to a dwelling-house, means the stage when-

   (a)  in the case of a concrete slab floor, the floor is completed; and

   (b)  in the case of a timber floor, the concrete footings are poured and
        the base brickwork is built to floor level;

frame stage, in relation to a dwelling-house, means the stage when the house's
frame is completed and approved by the building surveyor;

lock-up stage, in relation to a dwelling-house, means the stage when the
external wall cladding and roof covering is fixed, the flooring laid and the
doors and windows fixed;

fixing stage, in relation to a dwelling-house, means the stage when all
internal architraves, skirtings, doors, built-in shelves, baths, basins,
troughs, sinks, cabinets and cupboards are fitted and fixed in position.



(2) This section does not apply in relation to a contract between a builder
and a government department or public statutory authority or in relation to a
cost plus contract.

(3) Unless the parties to a domestic building work contract otherwise agree in
writing in the prescribed manner, a person who constructs a dwelling-house
must not demand or receive under the contract, or enter into a contract under
which that person is entitled to demand or receive, in the case of a contract
described in column 1 of the Table more than the percentage of the contract
price specified in column 2 of the Table at the completion of a stage
specified in column 3 of the Table in relation to that contract.

Penalty: 20 penalty units. TABLE Column 1

Type of contract Column 2 Percentage of contract price Column 3

Stage Contract to build to lock-up stage

20%

Base stage

" 25% Frame stage Contract to build to fixing stage

12%

Base stage

" 18% Frame stage

" 40% Lock-up stage Contract to construct through all stages

10%

Base stage

" 15% Frame stage

" 35% Lock-up stage

" 25% Fixing stage

(4) A contract is not illegal, void or unenforceable only because a
requirement of this section is not complied with.