Victorian Consolidated Regulations

2 Reg. 3(b): S.R. No. 126/1999. - SCHEDULE

FORM 1 Regulation 12(a) WARNING TO OWNER-CHANGE OF LEGAL RIGHTS Section 40 of
the Domestic Building Contracts Act 1995 provides that a builder cannot charge
more than a fixed percentage of the total contract price at the completion of
each stage of building a home. The Act also allows the parties to a contract
to agree in writing to change the stages and the percentage of the contract
price to be paid at the completion of each stage. There are several ways in
which a particular contract can vary from the normal, and it is these
exceptional cases which have caused the law to allow for these changes.
Examples would include-

* where it is very expensive to prepare the land for building for example,
where the site is steep or rocky;

* where the house is so large that it will take a long time to complete, and
intermediate progress payments are therefore required;

* where exceptionally expensive finishes are required, meaning that the final
stage will represent a much larger proportion of the whole price;

* where an architect is engaged to independently assess the value of completed
work for progress payments. You should not agree to progress payments
different from that provided in the Act unless your house is unusual in some
way and you are SURE THAT DIFFERENT PROGRESS PAYMENTS ARE NECESSARY and you
understand clearly why the change is needed in the case of your particular
house.







If you have any doubts, you could contact Housing Industry Association The
Master Builders' Association of Victoria Consumer Affairs Victoria Royal
Australian Institute of Architects

.................................................. I acknowledge that I have
read this warning before signing the contract Signature of Building Owner FORM
2 Regulation 12(b) PROGRESS PAYMENTS The parties agree-

   (i)  that the progress payments fixed by section 40 of the
        Domestic Building Contracts Act 1995 do not apply; and

   (ii) that instead the percentages of the contract price and amounts payable
        are as follows- Name of stage If this stage is not the same as a stage
        defined in section 40(1) of the Domestic Building Contracts Act 1995,
        what does this stage mean? Percentage of total contract price $









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