Western Australian Consolidated Acts

HOME BUILDING CONTRACTS ACT 1991 - SECT 14

14 .         Cost plus contracts

        (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 by No. 37 of 2002 s. 7.]