Western Australian Consolidated Acts Western Australian Consolidated Acts (1) A builder must not
enter into a contract that contains a rise-and-fall clause.
Penalty: $10 000.
(2) A rise-and-fall
clause in a contract is void.
(3) In this
section rise-and-fall clause means, subject to subsection (4), a
provision under which a price stipulated for the performance of home building
work may change to reflect changes in the costs of labour (including related
overhead expenses) or materials, or both, to be incurred by the builder.
(4) A provision of a
contract is not within the definition in subsection (3) by reason
only that it allows a builder to increase the stipulated price to reflect
further costs actually imposed on or incurred by the builder —
(a) as a
direct consequence of a written law of the State or the Commonwealth;
(b) on
account of an increase in any tax, duty or other charge imposed under any such
law after the date of the contract; or
(c) by
reason of a delay in the commencement of home building work beyond 45 working
days after the date of the contract being a delay —
(i)
that is caused solely by the failure of the owner to
comply with a condition imposed on the owner by the contract, including a
condition to the effect that the owner produce satisfactory evidence of the
owner’s ability to pay the contract price or of the owner’s title
to the land on which the work is to be performed; or
(ii)
that occurs without any failure on the part of either the
owner or the builder to comply with his or her obligations under the contract.
(5) Where
subsection (4)(c) applies the consequences to, and the rights and
remedies of, the parties are as set out in clauses 4 and 5 of
Schedule 1.