HOME BUILDING CONTRACTS ACT 1991 - SECT 14
HOME BUILDING CONTRACTS ACT 1991 - SECT 14
14 . Cost plus contracts, requirements as to
(1) A builder must not
enter into a cost plus contract with an owner for the performance of home
building work unless the contract is in writing and the written contract
—
(a) has
a heading at the beginning that includes the words “cost plus
contract”; and
(b)
contains an acknowledgment by the parties that the contract is a cost plus
contract and that this Act, apart from this section and Part 3A, does not
apply to the contract.
Penalty: $10 000.
(2) Subsection (1)
does not apply to a cost plus contract that comes within paragraph (b) of the
definition of home building work contract in section 3.
(3) If a builder
enters into a cost plus contract in breach of subsection (1), the contract may
be terminated by the owner in accordance with section 19.
[Section 14 amended: No. 37 of 2002 s. 7.]