HOME BUILDING CONTRACTS ACT 1991 - SECT 8

HOME BUILDING CONTRACTS ACT 1991 - SECT 8

8 .         Exceptions to s. 7 and related provisions

        (1)         Section 7(1) and (2) does not apply to a variation of a contract that is made necessary by —

            (a)         any written direction lawfully given by a person acting under a written law; or

            (b)         circumstances that could not reasonably have been foreseen by the builder at the time when the contract was entered into,

                if the builder gives to the owner, within the time allowed by subsection (2), a statement setting out the reason for, and the cost to be incurred on account of, the variation and a copy of any direction referred to in paragraph (a).

        (2)         A statement under subsection (1) must be given within 10 working days after the builder —

            (a)         received notice of the direction under paragraph (a); or

            (b)         became aware, or should reasonably have become aware, of the circumstances referred to in paragraph (b),

                of that subsection, as the case may be.

        (3)         Where —

            (a)         a statement is given to the owner by the builder for the purposes of subsection (1)(b); and

            (b)         the owner considers that the variation is not one to which subsection (1) applies,

                the owner cannot make a complaint as provided in section 17 unless the owner makes the complaint within 10 working days after the statement was given to the owner.

        (4)         Subsection (1)(b) does not enable a builder to vary a contract, except in accordance with section 7(1) and (2) or 13(4) or clause 4 of Schedule 1, by reason only of an increase in the costs of labour (including related overhead expenses) or materials, or both, to be incurred by the builder.

        [Section 8 amended: No. 14 of 1996 s. 4; No. 76 of 2000 s. 46; No. 16 of 2011 s. 114; No. 24 of 2011 s. 163(2) and (3).]