Western Australian Consolidated Acts Western Australian Consolidated Acts (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.