HOME BUILDING CONTRACTS ACT 1991 - SECT 12
HOME BUILDING CONTRACTS ACT 1991 - SECT 12
12 . Understatement of prime cost items etc. by builder, offence
(1) A builder must not
enter into a 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
misstated by being less than the least amount that it could reasonably cost to
supply the item or perform the work to which the amount relates.
Penalty: $10 000.
(2) In determining
whether an amount is misstated for the purposes of subsection (1) regard is to
be had to the matters or contingencies that were known (which may be set out
on the contract), or ought reasonably to have been known, to the builder at
the date of the contract.