Victorian Consolidated Legislation

House Contracts Guarantee Act 1987 - SECT 26

PART 5 MISCELLANEOUS

Supervision contracts

26. Supervision contracts



(1) A person must not enter into a supervision contract with another person
unless-

   (a)  the supervisor is an approved builder or an approved supervisor; or

   (b)  the other person has entered into, or in the supervision contract
        agrees to enter into, a domestic building work contract with an
        approved builder.

Penalty: 100 penalty units.

(1A) The following requirements must be complied with in relation to a
supervision contract:

   (a)  The contract must set out in writing-

   (i)  the names of the parties; and

   (ii) the date of the contract; and

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

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

   (v)  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



   (vi) the fair and reasonable estimate of the total cost of works, including
        a fair and reasonable estimate of the cost of the works to be
        performed by each tradesperson or type of tradesperson; and

   (vii) the contract price, or the manner in which the contract price is to
        be determined; and

   (viii) outlays or other charges;

   (b)  Subject to subsection (1D), the contract must comply with any
        requirements of the regulations as to the contents of supervision
        contracts;

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

   (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;

   (f)  The contract must contain a provision that any variation to the
        supervision contract must be in writing and signed by both parties
        personally or by an agent authorised to act on behalf of them.

(1B) If a requirement of paragraph (a), (c), (d) or (e) of subsection (1A) is
not complied with, the supervisor is guilty of an offence and liable to a
penalty of not more than 50 penalty units.

(1C) If a requirement of paragraph (b) or (f) of subsection (1A) is not
complied with-

   (a)  the supervisor 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.

(1D) If, at any time after a supervision contract is entered into, a
supervisor purports to vary the supervision contract otherwise than in
writing, the supervisor is guilty of an offence and liable to a penalty of not
more than 10 penalty units.

(1E) The Governor in Council in the regulations may, in specifying a
requirement to be complied with as to the contents of supervision 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.

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

(2) If a supervision contract contravenes subsection (1)-

   (a)  the contract is voidable, at any time before completion of the
        contract, at the option of the building owner; and

   (b)  the supervisor is not entitled to recover in any court the cost of any
        work performed under the contract.

(3) If a supervision contract complies with subsection (1) by reason that the
building owner agrees in the supervision contract to enter into a contract
with an approved builder for the performance of the domestic building work and
the building owner fails to do so, then-

   (a)  the building owner is guilty of an offence and liable to a penalty of
        not more than 100 penalty units; and

   (b)  the contract is voidable at the option of the supervisor at any time
        before completion of the contract.