Preview - ACFA Previews/20000-Or-over-with-I… · 6. PRIME COST OR PROVISIONAL SUM ITEMS Prime...

Contract for Major domestic building work

$20,000 or over (5% deposit) with insurance

The Contract pack:

The price of the contract includes the download and use of the contents of each pack.

The fee is a one off payment for unlimited use of the contract pack as it is customisable to

your business and can be edited and filled out per job.

Once purchased, the contract packs are downloaded by you as a zip file.

The file contains the following documents:

1. Contract

a. Contract Checklist

b. Cooling off period notice

c. Domestic Building Consumer Guide

d. Warning – Change to Price Notice

e. Form 1 & 2

f. Variation notice (to be completed)

Features:

PDF contract converted to have fillable fields (means you can use the same template for as

many jobs of that kind as you like)

You can input information without having to worry about the document reformatting or

moving around like a word document, which ensures compliance

You can change the title of the contract to whatever you wish to suit the different types of

work for example. joinery or laundry rather than kitchen.

You can also save to computer file and email to customers

There are guidance notes throughout the document that are viewable to you, however,

when printed do not show up for the customer.

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Further Support Documents provided for you by ACFA:

Example Progress Payment Schedule for Major Domestic Building Work $20,000 or over

(to assist in the breakdown of percentages for your project)

Frequently Asked Questions for Victorian Domestic Building Contracts

Victorian Domestic Building Contracts Webinar Video

Note to user: This document does not contain any legal advice. No recipient of this document may rely on the contents of

this document and it is only an indicative overview of the relevant general issues to consider. Recipients of this document

should obtain appropriate legal advice from qualified professional advisors that takes account of their particular

circumstances.

Australian Cabinet and Furniture Association and the other contributors to this document expressly disclaim liability for the

contents of this document under any statute or other law in contract, tort or otherwise, and assume no duty of care or

contractual obligation whatsoever to the recipient of this document or any other person for the contents of this document

or any reliance that may be placed upon it.

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CONTRACTOR NAME:

ADDRESS:

DATE:

CONTRACT PRICE: WARNING: The Price/Contract Price may change. In accordance with the Conditions of Contract, the reasons for possible increases in the Price/Contract Price include:

ontractor of Domestic Building Insurance policy cost or other applicable insurance costs in accordance with clauses 38 and 39 of Part B Conditions of Contract.

Please read all attached information and terms. Note: This Contract is to be used where the total value of the Contract is $20,000 or over (including any applicable GST amount) and where Domestic Building Insurance is required.

Warning + Note to Owner: Please read clause 10 Part B on asbestos

© AUSTRALIAN CABINET AND FURNITURE ASSOCIATION 2019

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Please note: This is a preview and some content has been redacted for copyright purposes. On purchase the watermark will be removed and content restored.

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Note to member: This document does not contain any legal advice. No recipient of this document may rely on the contents of this document and it is only an indicative overview of the relevant general issues to consider. Recipients of this document should obtain appropriate legal advice from qualified professional advisors that takes account of their particular circumstances. Australian Cabinet and Furniture Association and the other contributors to this document expressly disclaim liability for the contents of this document under any statute or other law in contract, tort or otherwise, and assume no duty of care or contractual obligation whatsoever to the recipient of this document or any other person for the contents of this document or any reliance that may be placed upon it.

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OWNER CHECKLIST (To be completed by the Owner prior to signing the Contract) 1. OWNER CHECKLIST

A. Have you checked that Contractor holds a current Contractor licence? Yes No

B. Does the licence cover the type of Work included in the Contract? Yes No

C. Is the name and number on the Contractor’s licence the same as on the Contract? Yes No

D. Is the Work to be undertaken covered in the Contract, drawings or specifications? Yes No

E. Does the Contract clearly state a Contract Price or contain a warning that the Contract Price is not known? Yes No

F. If the Contract Price may be varied, is there a warning and an explanation about how it may be varied? Has the Contractor given you a copy of the Warning Change to Price Form?

Yes Yes

No No

G. Are you aware of the cooling- off provisions relating to the Contract? Has the Contractor given you a copy of the Cooling Off Period Notices?

Yes Yes

No No

H. Is the deposit within the legal limit of 5% of the Contract Price? Yes No

I. Does the Contract include details of the progress payments payable under the Contract? If progress payments do not apply, does the contract include Form 1 and Form 2 being a warning and explanation clause for signing in the form set out in the Domestic Building Contracts Regulations 2017 (Vic)?

Yes Yes

No No

J. Yes No

K. Are you aware of who is to obtain any council or other approval for the Work? Yes No

L. Has the Contractor given you a copy of the Domestic Building Consumer Guide, which provides key information about your rights and responsibilities under Victoria’s domestic building laws and where to get more information? Has the Contractor given you a copy of the Approved Domestic Building Contracts Checklist?

Yes Yes

No No

M. Yes No

N. Does the Contract include a statement about asbestos in which the Contract Price may be varied? Yes No

O. Do you understand that you are not required to pay the Contractor a deposit or any progress payments until the Contractor has given you a certificate of insurance evidencing the Contractor has a current Domestic Building Insurance Policy (except where the Work is of a kind that does not require insurance)?

Yes No

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2. SIGNATURES

Do not sign this Contract unless you have read and understand the clauses as well as the notes and explanations contained in the Contract and this document. If you have answered “No” to any question in the checklist, you may not be ready to sign the Contract.

Both the Contractor and the Owner should retain an identical signed copy of this Contract including the drawings, specifications and other attached documents. Make sure that you initial all attached documents and any amendments or deletions to the Contract.

3. SIGNED COPY OF CONTRACT

Under the Domestic Building Contracts Act 1995 (Vic) and the Domestic Building Contracts Regulations 2017 (Vic) the Owner must be provided with a signed copy of the Contract as soon as reasonably practicable after the Contract is entered into, but no later than 5 clear business days, after entering into a domestic building contract.

.

4. OWNER’S ACKNOWLEDGEMENT

I/We have been given a copy of the Domestic Building Consumer Guide and I/We have read and understand it.

I/We have completed the checklist and answered “Yes” to all items on it.

NOTE: Where the Owner is a company or partnership or the Contract is to be signed by an authorised agent of the Owner, the capacity of the person signing the Contract, e.g. director, must be inserted.

Signature: Signature:

Name [print]: Name [print]:

Capacity [print]: Capacity [print]:

Date Date

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PART A: CONTRACT DETAILS

1. THE OWNER:

Name(s):

Address:

Suburb: State: Postcode:

Phone: Mobile:

Fax: Email:

2. THE CONTRACTOR:

Name(s):

Qualified Supervisor: (if applicable)

Address:


Business Address: (if different from address on licence)


Phone: Mobile:

Fax: Email:

ABN/ACN:

Licence No: Licence Expiry Date:

Licence Category:

3. CONTRACT PRICE (Amount in Words)

Price (excluding GST): This Price May Change. The Price will increase to cover GST.

GST on price:

Contract Price (including GST):

WARNING: The Price/Contract Price may change. In accordance with the Conditions of Contract, the reasons for possible increases in the Price/Contract Price include:

Warning: Changes to the price The price of this contract is not fixed, but may be altered as a result of:

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Note: If a payment is made by a business to another business when the payer has not received notification of the recipient’s ABN (Australian Business Number) then the payer will be obliged to withhold tax as required by the ATO and send it to the ATO.

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Ensure that you fully understand how the clauses dealing with these matters affect the contract price.

Warning to Building Owner as to prime cost itemsIt is always better to get a fixed price for all work. However, some fixtures and fittings may need to be selected after the contract is signed e.g. a stove, type of taps etc. If these items are specified as prime cost items the Contractor will allow an amount in the contract price which should cover the expected cost of the item.

Note: If the actual cost is more than the amount allowed you will have to pay the extra amount. You may also have to pay the Contractor’s margin in the extra amount. If this is intended, the margin should be specified, or cannot be claimed unless the building owner agrees in writing to such additional amount. If the prime cost is less than that allowed for in the contract, the difference should be deducted from the contract price.

List any excluded items and an estimate of the costs here:

Owner(s) Signature:

Date:

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4. SITE DETAILS (Where Work is to be done)

Address:


5. DESCRIPTION OF WORK/MATERIALS including Product(s) (this must be completed)

NOTE: All documents that are to be part of this Contract, including (but not limited to) sketches, quotations, plans and specifications and any Variations to the plans and specifications should be signed by both parties, dated and attached.

6. PRIME COST OR PROVISIONAL SUM ITEMS Prime Cost Items or Provisional Sum Items are either:

Items that you are to select after this Contract is signed or items or Work for which we are unable to give a definite price at the time of signing the Contract.

Description of items or Work to be done: Quantity Prime Cost/ Provisional Sum Item allowance including GST

$

$

$

$

$

$

$

Total: (If space is insufficient, attach a sheet referring to this schedule)

$

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7. RECORD OF ADJUSTMENTS AND VARIATIONS This is not part of the Contract Price stated in Contract on page 1 and page 4 (Part A Clause 3)

ADJUSTMENTS (If Any) (Prime Cost and Provisional Sum Items - Part A Clause 6 page 6 and Part B Clause 11 page 13)

ITEMS CLAUSE 6 SUM ALLOWED ACTUAL SUM ADJUSTMENT (+ OR - AMOUNT)

$ $ $

$ $ $

$ $ $

$ $ $

$ $ $

$ $ $

$ $ $

$ $ $

$ $ $

$ $ $

TOTAL:

$

8. VARIATIONS (Part B Clause 8 page 12)

DATE AGREED BRIEF DETAILS ADDITIONAL OR DELETED COST (+ OR - AMOUNT)

1

$

2

$

3

$

4

$

5

$

6

$

7

$

8

$

9

$

10

$

TOTAL:

$

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9. PROGRESS TIMELINE SCHEDULE

a. Check Measure Date (Part B Clause 5 page 11,12)

b. Commencement Date

c. Date(s) for delivery of Product(s) (“delivery stage”) (Clause 5 Part B page 11,12):

NOTE: Dates specified in the Progress Schedule may be subject to change in accordance with the Conditions of Contract. The reasons for possible changes include Variations and delays.

The Contractor may, by written notice, request the Owner to provide satisfactory evidence of the owner’s title to the land and capacity to pay the Contract Price and for any Variations agreed to after the Contract is signed. If the Owner fails to provide such evidence within 14 Days from receipt of such notice, the Contractor may suspend the work under the Contract in accordance with clause 16 Part B or take action to end it in accordance with clause 17 Part B.

10.PROGRESS PAYMENT SCHEDULE (Amounts in Words)

a. Deposit Due on signing of Contract % $

b. 1st Progress Payment

% $

c. 2nd Progress Payment Due on % $

d.

e.

f.

i. Final Payment Due on Completion Date % $

NOTE: By law the deposit cannot exceed 5% of the Contract Price. The description for each progress payment needs to describe what Work will be completed or what costs will be incurred. A progress payment is authorised only if it is one of the following kinds of authorised progress payments:

(a) a progress payment of a specified amount or specified percentage of the Contract Price that is payablefollowing completion of a specified stage of the Work, with the Work that comprises that stage described in clearand plain language; or

(c) If progress payments do not apply, the contract must include Form 1 and Form 2 being a warning andexplanation clause for signing in the form set out in the Domestic Building Contracts Regulations 2017 (Vic) to besigned prior to signing this Contract.

On receipt of the Final Payment, the Contractor must hand over to the Owner all guarantees, instruction manuals and the like unless already provided and all keys relating to the Work, together with any certification or approval which may have been provided by any public authority relating to the Work.

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Due on completion of stage of Work or for labour and materials in respect of Work already performed or costs already incurred (provide supporting receipts, invoices and other documents to support progress payment)

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11. COOLING OFF PERIODThe Owner is entitled to a cooling off period of 5 clear business days during which the Owner may rescind this Contract by giving the Contractor notice in writing. The ‘cooling-off’ period starts from the date the owner received the signed copy of the Contract, regardless of when they signed the Contract.

The Owner does not get a cooling-off period if they:

• previously entered into a major domestic building contract with you on the same terms for the same homeor land (the contract can differ slightly but not significantly); or

• engaged a lawyer to check the contract before they signed.

The notice of rescission must be given to the Contractor within five (5) clear business days after signing the Contract.

The notice of rescission must state that the Owner rescinds the Contract, and must be given to the Contractor by serving it personally on the Contractor, or by posting it by certified mail to the Contractor, before the expiry of the period of five (5) clear business days after signing the Contract, to the address shown as the Contractor’s address on page 4 of Part A of this Contract.

If a notice of rescission is given to the Contractor:

(a) the Contract is taken to be rescinded from the time it was signed, subject to (b), (c), (d) and (e) below

(b) the Contractor may retain out of any money already paid to the Contractor the amount of $100 and anyreasonable out of pocket expenses, incurred and approved by the client, that the Contractor incurred before therescission in respect of any materials supplied by the Contractor in relation to the Contract to the date the notice ofrescission is given;

(c) the Contractor is entitled to be paid, and may retain out of money already paid to the Contractor, a reasonableprice for any Work carried out under the Contract to the date the notice of rescission is given;

(d) the Contractor must refund all other money paid to the Contractor under the Contract by, or on behalf of, theOwner at or since the time the Contract was made; and

(e)

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12. ACCEPTANCE OF CONTRACTThis Contract is made between the Owner and the Contractor.

Part A: Contract Details and Part B: Conditions of Contract form part of this Contract.

As required by the Domestic Building Contracts Act 1995 (Vic) and the Domestic Building Contracts Regulations 2017 (Vic) the Owner has been given a copy of the Domestic Building Consumer Guide.

All terms and conditions of this Contract have been explained to the Owner and, in accepting the terms and conditions of this Contract, the Owner acknowledges that they have read and understood the Contract.

Owner(s) Signature:

Date:

Owner(s) Signature:

Date:

Contractor Signature:

Date:

Contractor Signature:

Date:

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Note: The contractor should check that the Owner’s name stated on the contract is the same as that appearing on the certificate of title for the land. A letter from the lending authority or Owner’s bank may be requested in relation to capacity to pay.

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PART B: CONDITIONS OF CONTRACT 1.CONTRACTOR’S MAIN OBLIGATIONSThe Contractor will carry out and complete the Works in accordance with this Contract. The Work will be completewhen it is finished in accordance with this Contract (except for any omissions or defects that do not prevent theWork from being reasonably capable of being used for its intended purpose), any damage caused by theContractor is repaired and any material belonging to the Contractor are removed from the Site.

The Owner may, as part of the Works and at the Owner’s cost, request that the Contractor remove from the Site and dispose of all rubbish, excavated material, vegetation, demolished or dismantled structures and surplus material relating to the Work.

It is agreed, subject to this and the other clauses of this Contract, that the Contractor will: (a) comply with the statutory warranties in

The Contractor warrants that it will: (a) carry out the work in a proper and workmanlike manner, in accordance with the plans and specifications set

out in the contract;(b) ensure all materials supplied by the builder are good and suitable for the purpose and are new, unless

otherwise stated in the contract;(c) carry out the work in accordance with all laws and legal requirements, including the Building Act 1993 carry out

the work with reasonable care and skill and complete works by the date (or within the period) specified by thecontract;

(d) ensure new homes, extensions, renovations, repairs and kit homes are suitable for occupation whencompleted; and

(e) ensure that if the contract states the particular purpose for which the work is required, or the result which theOwner wishes the work to achieve, so as to show that the Owner relies on the Contractor’s skill andjudgement, the Contractor warrants that the work and any material used in carrying out the work will bereasonably fit for that purpose or will be of such a nature and quality that they might reasonably be expected toachieve that result.

The Contractor warrants that any provisional sum included by the Contractor in the contract has been calculated with reasonable care and skill taking account of all the information reasonably available at the date the contract is made, including the nature and location of the building site.

2. PAYMENTThe Contract Price includes all matters (including GST) that could be reasonably expected to be necessary for thecompletion of the Work.

The Owner must pay the Contractor: (a) the Contract Price in accordance with the Contract progress payments set out in the Payment Schedule; and(b)

3. OWNER’S JOINT AND SEVERAL LIABILITYIf there is more than one Owner, the obligations in this Contract apply to each Owner individually and to all Ownerscollectively.

4. ACCESS TO THE SITEThe Owner must give the Contractor uninterrupted access to the Site to check measure or for installation or anyother purpose to complete the contracted Work. The Owner must provide access for the Contractor and anyemployee or subcontractor of the Contractor to carry out the Work as required during Work hours allowed byrelevant statutory authorities. The Owner must remove any personal property likely to impede the Work.

The Owner must give the Contractor and the Contractor’s workers and subcontractors adequate access to any available water, electricity, toilet and washing facilities when working or delivering to the Site.

If the Contractor requests access to deliver the Product/s and the Owner does not give access within 7 Days the Contractor can then claim payment for the delivery stage, as defined in Clause 9 of Part A or otherwise the Owner must pay the Contractor for Work performed and cost incurred up to the point of delivery.

5. CHECK MEASURING + APPROVALS

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The Contractor will attend the Site and perform the check measure on or before the check measure date (as defined in clause 9 of Part A). The Contractor may make minor modifications to the plans and specifications agreed to the checked measurements. The Contractor will notify the Owner of any modifications made. Any additional Work necessary to comply with the modified plans and specifications is a Variation and Clause 8 Part B applies.

If applicable the Owner must prior to the date of the Contract, promptly apply for, and bear the cost of, all necessary application fees for approval of the Work. The Owner must also apply for and obtain, at its expense, all approvals required from any public authority to occupy and use the completed Work. The cost of doing so and all fees are to be paid for by the Owner.

6. OUR RIGHT TO FIXThe Contractor must make good any loss or damage to the Work or property of the Owner caused by theContractor or the Contractor’s employees, agents or subcontractors. The Owner must remove any furniture orpersonal goods from the vicinity of the Work to minimise the risk of damage.

(a) If at any time the Owner claims the Product is defective, they must notify the Contractor in writing, as soon aspossible.(b) If the Owner fails to notify the Contractor of a claim within a reasonable time of becoming aware of an allegeddefect, the Contractor will not be responsible for any damage that results from the Owners delay in notification.(c) If the Contractor accepts responsibility, they have the right to fix the defect.

When the Contractor completes the Work, the Contractor must notify the owner in writing certifying that the Work has been completed in accordance with this Contract. Within 14 Days of receipt of written notice from the Contractor, the Owner must advise the Contractor in writing of any items of work the Owner considers to be incomplete or defective. If the Owner does not notify the Contractor, the Work will be taken to be complete.

The Contractor must complete any outstanding work promptly and again notify the Owner in writing. Unless the Owner notifies the Contractor in writing that any item is still incomplete or defective within a further 14 Days from receipt of notification by the Contractor, the Work will be taken to be complete. Should there be any dispute between the parties as to whether the Work has been completed, it must be dealt with in accordance with the dispute resolution procedure in clause 29.

7. DELAYSThe Contractor will complete the Work by the Completion Date. The Contractor must take all reasonable steps tominimise any delay to the Work. Any request for an extension of time must be notified in writing to the Owner within10 Days.The Contractor shall not be responsible for any delay caused by something beyond their control, including but notlimited to, inclement weather, industrial disputes or Variations to the Work, or any failure by the Owner to:

(a) make a selection;(b) have the Site ready for delivery if specified in the Contract;(c) notify the Contractor that the Site is ready; or(d) give the Contractor sufficient access to the Site.

The delivery date will be put back and the Completion Date extended by whatever time is reasonable if the Contractor claims an extension of time by giving the Owner written notice within 10 Days.

For every day the subject of an extension of time where the Owner is responsible for the delay the Contractor may charge the Owner the total of the actual increase in cost to the Contractor to carry out the Works (plus GST) and plus another [ ]%.

8. PLANS & VARIATIONSThe Work including materials may be varied by written agreement between the Owner and the Contractor. The Contractor may claim payment for a Variation as soon as the Variation is completed.(a) All plans and specifications for the Works including any Variations to those plans and specifications form part of

If the Owner or the Contractor requests a Variation, the Contractor will give the Owner a written quote detailing the Variation, the cost of the additional or omitted Work and any changes to the Progress Schedule.

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Note: Consumer affairs states that a builders margin must be reasonable and a percentage amount must be included in the contract in order to be able to claim the amount back from the client e.g.10% - 20% would be considered reasonable)

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If the Owner agrees to the Variation by signing the quote/Variation and returning it to the Contractor, the Contractor will carry out the Variation in the time agreed.

The price of extra Work, which includes GST, will be added to the Contract Price. The cost of omitted Work will be deducted from the Contract Price.

The Owner cannot unreasonably withhold consent to a Variation that the Contractor requests in accordance with Clause 5 Part B.

9. UNFORESEEN CIRCUMSTANCESTo the extent permitted under law, the Contractor will not be responsible or liable for work arising from factorsbeyond its control, unforeseen problems or which is outside the initial scope outlined in Part A.

For example, the Contractor will not be responsible or liable for additional work arising from the supply of a Product at the request of the

If any such additional work is required, the Contractor may request a Variation.

Unless otherwise agreed, any such additional Work required will be charged at the actual cost to the Contractor (plus GST) and plus [ ]%.

This clause does not limit clause 35 (statutory rights).

10. ASBESTOS

The Owner must advise the Contractor, if asbestos is located in or around the Site or if they have any reason to believe asbestos is located in or around the Site, prior to this Contract being signed.

10.1 Should the Contractor identify asbestos material or material it suspects is asbestos (asbestos), in or around the Site after the Commencement Date, the Contractor will: (a) immediately stop work;(b) notify the Owner of the asbestos; and(c) advise the Owner if the Contractor can remove the asbestos or whether the Owner needs to contact a licensedtradesperson to remove the asbestos.

10.2 If the Contractor stops work pursuant to this clause the Contractor is entitled: (a) to full payment for any Work completed up to and including the date that the Owner is notified; and(b) to terminate this Contract and submit a new Contract for consideration by the Owner and approval of bothparties; or(c) to vary the Contract to amend the Completion Date and the Contract Price.

The Owner acknowledges and agrees that the Owner will be liable for all costs incurred in relation to the safe removal and disposal of all asbestos located at the Site.

Any asbestos will be managed and controlled in accordance with Victorian Government’s policies and codes of practice, refer to https://www.worksafe.vic.gov.au/resources/compliance-code-managing-asbestos-workplaces and http://www.asbestos.vic.gov.au/ and any other applicable legislation that governs and regulates the safe removal of asbestos.

11. PRIME COST AND PROVISIONAL SUM ITEMSExcept as otherwise agreed between the Owner and the Contractor in this Contract, the Contractor is notresponsible for the supply or installation of any appliances or connection to any services.

Unless the Owner and the Contractor agree otherwise, such Work shall be listed as prime cost or Provisional Sum Items.

Each prime cost or Provisional Sum Item shall be listed in Clause 6 Part A (to be attached) with a stated allowance specifying the estimated cost of supplying the item and/or providing the Work.

Where the actual cost of supplying the item and/or providing the Work is less than the prime cost or Provisional Sum Item allowance set out in Clause 6 Part A, the Contract Price will be reduced by an amount equal to the difference.

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https://www.worksafe.vic.gov.au/resources/compliance-code-managing-asbestos-workplaces

http://www.asbestos.vic.gov.au/

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Where the actual cost of supplying the item or providing the Work is more than the prime cost or Provisional Sum Item allowance set out in Clause 6 Part A, the difference (plus GST) and plus a [ ]% surcharge will be added to the Contract Price.

When required by the Contractor, the Owner must promptly make all selections relating to prime cost or Provisional Sum Items.

The

12. MATERIALSThe Contractor will make every reasonable effort to ensure that Work methods and materials used correspond withsample products selected and/or provided by the Owner. However, the Contractor will not be responsible forVariations in the colour or grain of products such as timber, granite and other natural materials.

To the extent permitted under law, the Contractor will not be responsible for the suitability of material used to manufacture a Product if specified by the Owner.

13. SURPLUS MATERIALSUnless otherwise agreed between the Owner and the Contractor in this Contract, surplus materials will at all timesremain the property of the Contractor.

14. SECURITY INTERESTThe legal title in the Product does not pass to the Owner until all amounts payable under this Contract have beenpaid in full.

The Owner grants to the Contractor a security interest (and where applicable, a Purchase Money Security Interest) in the Products (including all related proceeds) supplied under this Contract as security for all or part of the amount payable by the Owner to the Contractor under this Contract. The Owner authorises the Contractor to register a financing statement with respect to this security interest on the PPSR and agrees to provide any information to the Contractor necessary to register this security interest.

Until this security interest has been satisfied, in addition to any remedies available to the Contractor under Part 4 of the PPSA: (a) the Products must remain clearly identifiable from any other goods of the Owner;(b) If the Owner fails to make a due payment in accordance with this Contract, the Contractor may enter the Siteand take reasonable action to remove the Product, without being liable to the Owner for any damage to the Sitewhich may be caused by such removal;

This clause 14 of Part B survives any termination of this Contract.

15. WARRANTYContractor warrants that Work will be performed with due care and skill and in accordance with the plans and specifications set out in the Contract. The materials and workmanship of the Products shall be free from defects fora period of [ ] from the date the Products are installed at the Site (Warranty Period). The benefits given to the Owner under this warranty are in addition to other rights and remedies the Owner has under law. This warranty should be read in conjunction with any other warranties accompanying the Products.

To make a claim under this Warranty, the Owner must during the Warranty Period notify the Contractor (using the contact details provided in this Contract) and provide valid proof of purchase of the Products together with a suitable description of the defect. After the Contractor has accepted the defects claim, the Contractor may at its discretion either repair or replace the Product (or pay the cost of doing the same). The Owner irrevocably authorises, permits and allows the Contractor unrestricted access to the Site to inspect or fix defective Works in accordance with this clause.

This warranty covers the Products only and does not cover:

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(a) appliances or materials made or provided by other parties or the Owner;(b) defects due to normal wear and tear, shrinkage, or changes in climate or geographic conditions which causemovement and Variations in building work;(c) defects due to use of the Products which is unusual, negligent (including misuse and abuse), contrary to anyother instructions supplied with the Products; or(d) defects due to factors beyond the Contractor’s control.

The Contractor’s liability to the Owner under this warranty is limited to repairing or replacing the Products (or the cost of doing the same).

Our goods come with guarantees which cannot be excluded under the Australian Consumer Law. You are entitled to a replacement, repair or refund for a major failure and to compensation for other reasonably foreseeable loss or damage.


16. SUSPENSIONIf the Owner is in breach of this Contract in any way whatsoever, the Contractor may by written notice immediatelysuspend the carrying out of the Works.

The Contractor must recommence the carrying out of the Works within a reasonable time after the Owner remedies the breach, and gives the Contractor written notice of that fact.

17. TERMINATIONIf the Owner is in serious breach of this Contract, the Contractor must give the Owner a written notice inaccordance with clause 31 detailing the nature of the breach and requesting that the Owner remedy the breachwithin 14 Days.

If the Contractor is in serious breach of this Contract,

If either party receives a written notice under this clause and does not remedy the breach within 14 Days, the other party may terminate this Contract by giving written notice to that effect.

If the Owner fails to make payment due under the Contract or denies access to the Site to the Contractor to prevent the Work from proceeding, the Contractor may issue a written notice requiring the Owner to remedy the default within 14 Days of receipt of the notice by the Owner. If the default is not remedied, the Contractor may terminate the Contract by written notice to the Owner.

If the Contractor fails to complete the Work within the completion period, or if no completion period is agreed, within a reasonable time or fails to remedy defective work or replace faulty or unsuitable materials, then the Owner may, issue a written notice requiring the Contractor to remedy the default within 14 Days of receipt of the notice by the Contractor or within such other reasonable period as may be mutually agreed. If the default is not remedied within the 14 Days or other reasonable period as mutually agreed, or is not capable of being remedied, the Owner may terminate the contract by written notice to the Contractor.

18. EFFECT OF ENDING THIS CONTRACTIf this Contract is ended the Owner must without prejudice to any right or remedy, pay the Contractor all amountsdue in payment of the Contract Price in accordance with the Payment Schedule with respect to all Work carried outto the day this Contract is ended (End Date). In the event the End Date falls before a progress payment is duepursuant to the Payment Schedule, the Owner must without prejudice to any right or remedy, pay the Contractorthe amount of all progress payments due prior to the End Date pursuant to the Payment Schedule, plus theamount being the actual cost to the Contractor to perform the Work with respect to Work done in the periodbetween the last progress payment due date falling prior to the End Date, and the End Date.


19. INSOLVENCYIf a party to this Contract becomes, at any time insolvent, then the other party may terminate this Contract by givingwritten notice to that effect.

To be insolvent means:

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(a) any act of bankruptcy under the Bankruptcy Act 1966 by a natural person;(b) the appointment of a liquidator, provisional liquidator, receiver, receiver and manager, administrator or theentering into of a deed of arrangement if a corporation; or(c) any act of insolvency, under the Corporations Act 2001 by a corporation.

20. RISKAll Product and materials shall be at the Owner’s risk once delivered to the Site.

21. CHARGE OVER LAND

This clause 21 of Part B seeks to establish an interest in the property to which the Contract relates for which a right to lodge a caveat over the property will exist. In the event that a caveat is lodged over the property, the rights of the owner of the property to deal with the property and have such dealings registered in the Lands Titles Office will be restricted. The interest in the property created by this clause 21 of Part B entitles the Contractor to apply to a court for the sale of the property for the purposes of recovering any debt that may be outstanding in relation to this Contract. The Owner is advised to seek independent legal advice in relation to this clause 21 of Part B.


22. COPYRIGHTThe Contractor owns the copyright in all plans, specifications and workshop drawings created by or on behalf ofthe Contractor.

The party supplying any plans or specifications (documents) for use under this Contract warrants that they may be used for the purposes of this Contract and indemnifies the other party against any liability or cause of action by any person claiming ownership or copyright in respect of the documents or arising out of their use.


23. DEFAULT INTERESTIf the Owner fails to make any payment due under this Contract on time, the Contractor will charge the Ownerinterest on the unpaid amount at the interest rate payable on Victorian Supreme Court judgments as varied fromtime to time.


24. DEBT COLLECTING COSTThe Owner must reimburse the Contractor for any debt collection costs, including (but not limited to) any legal feesand commissions,


25. WHOLE AGREEMENTSubject to law, Part A: Contract Details and Part B: Conditions of Contract and the sketches, quotations, plans andthe specifications, including any Variations to those plans and specifications;

(a) comprise this Contract;(b) comprise the whole agreement between the Owner and the Contractor; and(c) supersede any prior negotiations, discussions or understandings between the Owner and the Contractor.

26. PREVAILING DOCUMENTSIn the event of any inconsistency or ambiguity as to the agreement between the Owner and the Contractor, theConditions of Contract, the plans and the specifications have precedence in that order.

27. ASSIGNMENT + SUBCONTRACTINGThe Contractor may sub-contract any obligations under this Contract.The Owner must not give instructions to any subcontractors or workers on the Site.

Neither the Owner nor the Contractor may assign their rights or obligations under the Contract without the prior written consent of the other party, such consent not to be unreasonably withheld.

28. GSTIn this clause 28:

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(a) “GST Amount”, “GST-exclusive Consideration”, “Recipient”, “Supply Party” and “Tax Invoice” have themeanings given in this clause 28; and

(b) other terms used that are defined in the GST Act have the same meanings in this clause 28.For each supply made by a party (“Supply Party”) under or in connection with this Contract on which GST isimposed:(c) the amount payable or to be provided for that supply under this Contract but for the application of this clause

28(c) (“GST-exclusive Consideration”) will be increased by, and the recipient of the supply (“Recipient”) mustalso pay to the Supply Party, an amount (“GST Amount”) equal to the GST-exclusive Consideration multipliedby the prevailing rate of GST; and

(d) the GST Amount must be paid to the Supply Party by the Recipient without set off, deduction or requirementfor demand, at the same time as the GST-exclusive Consideration is payable or to be provided,

Subject to a valid tax invoice (“Tax Invoice”) being provided in respect of the GST-exclusive Consideration. (e) the Supply Party must provide the Recipient with a Tax Invoice before the due date for payment of the supply.(f) If and to the extent an adjustment event arises in respect of a supply made under or in connection with the

29. DISPUTESIn the event of a dispute arising between the Owner and the Contractor in relation to a matter covered by thisContract, the disputing party must notify the other party in writing of the items in dispute. Subject to and withoutlimiting the Domestic Building Contracts Act 1995 (Vic) and the Domestic Building Contracts Regulations 2017 (Vic), theOwner or the Contractor may seek to resolve the dispute by consulting with a mutually agreed third party mediator.

30. REMOVAL OF ITEMSThe Owner acknowledges that before or during the carrying out of the Works, any existing appliances or any itemssuch as kitchen, bathroom, wardrobe (built-in or otherwise),

Where there is a dispute between the Owner and the Contractor in relation to a matter covered by this Contract, the Owner agrees that once any of the appliances, items or any part of any of the items are removed from the Site, the Owner will not recover from the Contractor those appliances items or any part of any of those items, nor claim damages for same.

31. GIVING OF NOTICESSubject to the Domestic Building Contracts Act 1995 (Vic) and the Domestic Building Contracts Regulations 2017(Vic) or other applicable legislation, where this Contract requires written notice to be given to a party for anyreason, such notice may be served by:(a) giving it to the party personally;(b) leaving it at the party’s address specified in Part A of this Contract; or(c) sending it by registered mail to the party’s address specified in Part A of this Contract.

32. DEFINITIONSUnless otherwise stated in this Contract:

Attachment means an attachment, schedule, or annexure to this document; Commencement Date means the date specified as such in Clause 9 of Part A; Completion Date means the date specified as such in Clause 9 of Part A; Conditions of Contract means the terms and conditions in Part B: Conditions of Contract of this document; Contract means Part A and Part B of this document and any Attachments such as sketches, quotations, plans, specifications and Variations relating to this document; Contract Price means the amount stated in Clause 3 of Part A, subject to any changes in accordance with the Conditions of Contract; Contractor means the Contractor named in Clause 2 of Part A; Day/s means calendar days; GST has the meaning given in the GST Act; GST Act means the A New Tax System (Goods and Services Tax) Act 1999 (Cth); Owner means the Owner named in Clause 1 of Part A; Provisional Sum Item has the meaning given to that term in Clause 11 of Part B and includes a contingency sum and a prime cost item; Payment Schedule means the schedule set out in Clause 10 of Part A;

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PPSA means the Personal Property Securities Act 2009; PPSR means the Personal Property Securities Register established under the PPSA; Product means the cabinets, built-ins and/or other Products described in Clause 5 of Part A and set out in the plans and specifications, including any Variations; Progress Schedule means the schedule set out in Clause 9 of Part A; Site means the premises described in Clause 4 of Part A where the Works are to be carried out for supply and install or where the Work is to be delivered if the Contract is supply & deliver; Unforeseen Circumstances means any hidden problems which the Owner did not tell the Contractor about or are only revealed when installing the Product; Work/s means any one/or more than one of the following: supply, manufacture, install, deliver (as specified in the Contract) and/or provision of other work in relation to the cabinets, built-ins and/or other Products described in Clause 5 of Part A and set out in the plans and specifications, including any Variations; and Variation means any change in the Works or the method of carrying out the Works; and like words have the same meaning.

All monetary amounts are in Australian currency.

33. SEVERABILITYEach provision of this Contract shall be read as separate and severable so that if any provision is held by a court ofcompetent jurisdiction to be void or unenforceable for any reason, that provision will be severed from the Contractand the remainder of the Contract will be construed as if the severed provision had never existed.

34. APPLICABLE LAWThis Contract will be governed by, and construed in accordance with, the laws of Victoria.

35. STATUTORY RIGHTSThe Australian Consumer Law, Competition and Consumer Act 2010 and the Domestic Building Contracts Act1995 (Vic) and the Domestic Building Contracts Regulations 2017 (Vic) contain statutory guarantees andwarranties that cannot be excluded. These Acts also prescribe remedies available to consumers and customers incircumstances where there is a breach of such warranties and guarantees or there is a defect. Nothing in thisContract operates to exclude or limit those statutory guarantees and remedies insofar as they apply to theContractor, the Owner and the Products under this Contract.

36. OTHER CONDITIONSTo the extent required by the Domestic Building Contracts Act 1995 (Vic) and the Domestic Building ContractsRegulations 2017 (Vic) and subject to this clause, the Works will comply with:

(a) The Building Code of Australia;(b) All other relevant codes, standards and specifications that the Work is required to comply with under any

law; and(c) The conditions of any relevant development consent or complying development certificate.

The Contractor is not liable if the Works do not comply with the above requirements if the failure relates solely to: (a) A design or specification prepared by or on behalf of the Owner (but not by or on the Contractors behalf):(b) A design or specification required by the Owner, if the Contractor has advised the Owner in writing that the

design or specification contravenes the above requirements.

Any agreement to vary this Contract, or to vary the plans and specification for the Works, must be in writing and signed by the parties.

37. LIMITATION OF LIABILITYThe Contractor’s total liability for breach of this Contract is limited at the Contractor’s option to:(a) the replacement of the Products or Works or the supply of equivalent Products or Works;

Subject to the provisions of the Domestic Building Contracts Act 1995 (Vic), the Domestic Building Contracts Regulations 2017 (Vic) and the Australian Consumer Law, neither party shall be liable to the other for any indirect or consequential loss.

This clause 37 survives any termination of this Contract.

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38. DOMESTIC BUILDING INSURANCEThe Contractor will not commence or perform Work under this Contract or demand or receive any part of theContract Price until Domestic Building Insurance has been obtained and the Owner has been provided with acertificate that evidences the taking out of that policy of insurance and complies with the requirements of Victoria’sdomestic building laws.

The Owners must reimburse the Contractor the cost of building indemnity insurance in respect of the Work performed or to be performed under this Contract. This cost is in addition to the Contract Price.

39. OTHER INSURANCEBefore the Contractor commences any Work under this Contract or is given access to the Site, the Contractor musthave current insurance cover for:(a) public liability insurance to cover liabilities to third parties for death or personal injury or damage to property foran amount not less than $5 million;(b) workers’ compensation insurance to cover any employees; and(c) any other insurance required at law, (if requested the Contractor must provide the Owner with proof that allsuch insurances have been taken out and are current).

Prior to the commencement of the Work the Contractor must provide to the Owner copies of certificates of currency as evidence that insurances required by this Contract have been obtained and are current.

If the Owner requires the Contractor to insure the Product against loss or damage after it has been delivered to the Site, or to similarly insure the Owner’s property while the Product is being installed on the Site, the Owner must advise the Contractor in writing and will be charged the Contractor’s actual cost of taking out such insurances.

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ATTACHMENTS TO CONTRACT LIST ANY ATTACHMENTS HERE (including other documents, plans, specifications and designs)

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Director of Consumer Affairs Victoria Approved Domestic Building Contracts Checklist

Section 31(1)(r) of the Domestic Building Contracts Act 1995

This checklist must be included in major domestic building contracts entered into from 1 September 2016 in substantially the same form or to the same effect as follows.

Before signing this legally binding contract, check this list:

If the cost of the building work is more than $16,000, has an insurance policy or certificate of currency for domestic

building insurance covering your project been issued and provided to you?

(Note: If not, the contract is conditional upon you receiving either an insurance policy or a certificate of currency for

domestic building insurance.)

Yes No

If this contract is conditional upon you receiving written approval for finance, have you obtained such approval? Yes No

Have you appointed a private building surveyor or has a municipal building surveyor been engaged?

(Note: If not, you will need to choose and engage a building surveyor before your building work starts so that a building

permit can be issued for your building work.)

Yes No

If you answer ‘NO’ to any of the following questions that apply to your building project, you are not ready to sign the contract:*

Have you had this contract long enough to read and understand it? Yes No

Have you been provided with evidence that the builder named in this contract is registered with the Victorian

Building Authority? Yes No

Are the price and progress payments clearly stated? Yes No

Do you understand how the price is calculated and may be varied? Yes No

Has the builder assessed the suitability of the site for the proposed works? If tests are necessary, have they been

carried out? Yes No

If a deposit is payable, is it within the legal limit? The maximum under the Domestic Building Contracts Act

1995 is:

1. 10% if the price is less than $20,000, or

2. 5% if the price is $20,000 or more.

Yes No

Attachment: a. Contract Checklist

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(4 August 2016)

consumer.vic.gov.au/buildingindustry Page 2 of 2

Is the work shown and described clearly in the contract, plans and specifications and any other relevant documents

(such as engineering computations or soil report)? Yes No

Are your special requirements or standards of finish included in the plans and specifications? Yes No

Are the commencement date and completion date clearly stated or capable of being worked out? Yes No

Do you understand the procedure for extensions of time? Yes No

Are any ‘provisional sums’ or ‘prime cost items’ clearly stated in the schedules and understood by you? Yes No

Do you understand the procedure for variations of plans and specifications? Yes No

Do you understand the circumstances in which you can end the contract? Yes No

Did your builder give you a copy of the Domestic Building Consumer Guide? Yes No

If yes, insert the date on which you were given a copy of this guide

dd/mm/yyyy

Have you read the Domestic Building Consumer Guide and the related information at consumer.vic.gov.au/building

guide? Yes No

This checklist does not form part of the contract.

I/we have read and completed this checklist:

Signature/s

Date dd/mm/yyyy

* Note: Not all of these questions will apply to a domestic building contract that covers a limited scope of work, forexample, a contract that is limited to the preparation of building plans and specifications.

Attachment: a. Contract Checklist

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http://consumer.vic.gov.au/


Domestic Building Contracts Act 1995

Director of Consumer Affairs Victoria

Approved notice

The following notice is hereby approved by the Director of Consumer Affairs Victoria. This version of the notice replaces the version published in the Victorian Government Gazette of 16 May 1996. The notice must be included in major domestic building contracts in substantially the same form or to the same effect as follows:

Notice pursuant to Section 31(n)

Cooling off period

Notice to Building Owner: You may end this contract within five clear business days after receipt by you of a signed copy of the contract by filling in the notice below and giving it to the builder in one of the following ways:

1. Personally2. Leaving it at his or her address set out in the contract with a person who appears to be at least 16

years old3. Sending it by pre-paid certified mail to the address set out in this contract4. Sending it by facsimile to the facsimile number (if any) set out in this contract.

Notice that contract has ended

A Building Owner cannot withdraw from a contract under the Act if:

1. The Builder and the Building Owner have previously entered into a major domestic buildingcontract that is in substantially the same terms for the carrying out of the work in relation to thesame home or land; OR

2. The Building Owner received independent legal advice from a practicing solicitor concerning thecontract before entering into the contract.

To (Builder)

I/We give notice under our contract with you that the contract is ended.

Please refund the deposit less $100 and any out of pocket expenses incurred by you which I have previously approved.

Building Owner’s signature:

Date: / / 20

Attachment: b. Cooling off period notice

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http://www.consumer.vic.gov.au/renting

(1 August 2017)

consumer.vic.gov.au/buildingguide Page 1 of 2 This guide must not be taken as legal advice.

Domestic Building Consumer Guide Mandatory contract information statement for consumers Your builder must give you a copy of this guide before you sign a major domestic building contract. A major domestic building contract is required for most building projects to build, renovate or extend a home, such as a house or unit, where the cost of the work is over $10,000.

Reading this guide will help you to know your rights and responsibilities and understand the roles and responsibilities of your builder and building surveyor.

Learn more about the topics in this guide, and domestic building contracts and work generally, at consumer.vic.gov.au/buildingguide.

Before your building project starts You will usually need to appoint building practitioners when you build, renovate or extend a house or unit, or do other building work. Other work includes work such as landscaping, fencing or building a swimming pool, driveway or a garage. You may need a builder to complete the building work, and if you need a building permit you will need a building surveyor.

The Victorian Building Authority (VBA) registers building practitioners. If you are concerned about the conduct of a building practitioner you should contact the VBA.

You can check the registration and disciplinary history of a building practitioner via the links at consumer.vic.gov.au/buildingguide.

Your builder must also take out Domestic Building Insurance (DBI) for your project, if the building work costs more than $16,000. This covers defective or incomplete work for up to six years if your builder dies, disappears or becomes insolvent. You can also claim on DBI with the Victorian Managed Insurance Authority if your builder fails to comply with a final order from the Victorian Civil and Administrative Tribunal or a court.

Check when you may make a claim via the links at consumer.vic.gov.au/buildingguide.

Appointing your builder You appoint your builder by signing a major domestic building contract.

Your contract must be in writing and include details such as: • the contract price• the deposit and progress payments required by

law for completed stages of work• a description of the building work to be carried out• the plans and specifications, and• advice on the five-day cooling-off period.

The contract price should be a fixed amount. Cost-plus contracts, for example where your builder charges you by the hour, are only allowed for projects over $1 million, or for renovation projects in limited circumstances.

Make sure you have enough time to thoroughly read the contract. You should also consider obtaining independent legal advice before you sign the contract, even though this means you no longer have the five-day cooling-off period to change your mind.

If you are asked to sign a pre-construction contract (for example, a contract for design or specification work or obtaining permits) that is for more than $10,000, it will be a major domestic building contract.

Your contract will also include a checklist, which sets out the matters you must consider before signing the contract. You must complete and sign the contract checklist.

You can make a variation to a contract after it has been signed by using a variation notice (for example, to change the plans and specifications). You and your builder must agree in writing to the changes and put the details, including the new price and completion date, in the contract before the work is carried out.

Find more information about the contract, the checklist and contract variations via consumer.vic.gov.au/buildingguide.

Appointing a building surveyor Some building projects require a building permit. A building permit is written approval from a building surveyor that your plans and specifications comply with the building regulations. It allows your builder to start your building project.

If your building work requires a building permit, you must engage a building surveyor before you apply for the permit. There are penalties for you and your builder if a building permit is not obtained.

You can only engage one building surveyor, but you may choose either a private building surveyor or a municipal building surveyor. Your builder may recommend a building surveyor, but cannot appoint a private building surveyor for you.

You can choose a building surveyor via the links at consumer.vic.gov.au/buildingguide.

If you want to engage a municipal building surveyor, contact your local council.

Attachment: c. Domestic Building Consumer Guide

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http://consumer.vic.gov.au/buildingguide





(1 August 2017)

consumer.vic.gov.au/buildingguide Page 2 of 2

This guide must not be taken as legal advice.

During your building project Role of your builder Your builder is responsible for completing your building project to the standard required by the building regulations and your plans and specifications. The builder may undertake the work or engage and manage tradespeople to do the work.

Your builder must also provide you with a copy of the DBI policy and a certificate of insurance for your building project, before you pay your deposit. If you are concerned about the validity of the certificate, you should check with the insurer.

Role of the building surveyor A building surveyor is responsible for checking that your building project meets the minimum standards of the building regulations. They will independently: • assess your plans and issue the building permit• require protection work to be undertaken so your

building work does not damage your neighbour’sproperty

• conduct the mandatory building inspectionspersonally or have a building inspector conductthe inspections at the mandatory notificationstages of your building project, and

• issue the occupancy permit or certificate of finalinspection on completion of the building work.

Your building surveyor may issue directions and orders to the builder to fix building work or to stop work. They can also give you building notices and orders about the building work, if necessary.

The mandatory inspection stages for a house are: • completion of excavations before placing the

footings• before pouring the concrete footings or slab• completion of the framework, and• completion of all of the building work.

You can ask your building surveyor to carry out additional inspections, for example, pre-plaster inspections and wet area inspections. Your building surveyor may charge more for additional inspections.

Find more information about building surveyors at consumer.vic.gov.au/buildingguide.

Your role You are responsible for checking the progress of your building project, talking to your builder about any issues or concerns you may have and paying your builder for completed work. You have the right to reasonable access to your building site at any time during construction, to check on the progress.

Make sure you: • choose a building surveyor, if required• provide the builder with the items you agreed to

supply as soon as possible (for example, materials such as tiles, or a service such as a tiler to work on the flooring)

• put the details and costs of any changes in writing– you and your builder must sign off on thechanges before the builder starts the work, and

• only make stage payments when the building workfor each stage is complete – do not makepayments in advance.

Check everything in your contract has been delivered and is in working order before you make the final payment.

Find details at consumer.vic.gov.au/buildingguide.

Tips and traps Beware of: • an extremely low quote compared to other

builders – this may indicate a risk that the qualityof the job may be compromised, that the buildermay not fully understand what is required or maynot be properly registered or insured

• sales pitches that put pressure on you to sign thecontract quickly to avoid a price increase, and

• a builder who recommends that you get an ownerbuilder permit while they organise all the buildingwork.

If things go wrong Statutory warranties and guarantees The workmanship and quality of your building project is protected by specific statutory building warranties and general consumer guarantees.

Statutory building warranties make sure that your builder uses good workmanship and delivers everything in your contract. You can take legal action for a breach of the statutory building warranties at any time, up to 10 years after the date the occupancy permit or certificate of final inspection was issued.

You are also protected by the Australian Consumer Law (ACL). The ACL provides statutory guarantees that goods and services supplied in trade or commerce, such as building work, meet certain standards. For example, building work must be carried out with due care and skill, be fit for purpose and be delivered in a reasonable time.

Disputes Many disputes can be avoided when there is good communication between you and your builder. If a dispute does arise, you should first try to sort it out with your builder.

If you cannot resolve the dispute, contact the Victorian government’s free and independent service, Domestic Building Dispute Resolution Victoria. Find details and lodge a dispute, via the links at consumer.vic.gov.au/buildingguide.

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Attachment: c. Domestic Building Consumer Guide







Director of Consumer Affairs Victoria approved form

The following form is hereby approved by the Director of Consumer Affairs Victoria. This version of the form replaces the version published in the Victorian Government Gazette of 16 May 1996.The form must be included in major domestic building contracts in substantially the same form or to the same effect as follows:

Form pursuant to section 33(2)(b)

Price

Warning: Changes to the price

The price of this contract is not fixed, but may be altered as a result of:

• the actual cost of prime cost items and work for which provisional sums have been specifiedexceeding the estimates set out in the contract

(Refer clauses [11 Part B]) • variations including those required by the council/registered building surveyor

(Refer clauses [8 Part B & 9 Part B]) • interest on overdue payments

(Refer clauses [23 Part B]) • extra costs for delay claimed by the Builder

(Refer clauses [7 Part B])

Ensure that you fully understand how the clauses dealing with these matters affect the contract price.

Warning to Building Owner as to prime cost items

It is always better to get a fixed price for all work. However, some fixtures and fittings may need to be selected after the contract is signed e.g. a stove, type of taps etc. If these items are specified as prime cost items the builder will allow an amount in the contract price which should cover the expected cost of the item.

Note: If the actual cost is more than the amount allowed you will have to pay the extra amount. You may also have to pay the builder’s margin in the extra amount. If this is intended, the margin should be specified, or cannot be claimed unless the building owner agrees in writing to such additional amount. If the prime cost is less than that allowed for in the contract, the difference should be deducted from the contact price.

Attachment: d. Warning - Change to Price Notice

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Authorised by the Chief Parliamentary Counsel

Schedule 1

Domestic Building Contracts Regulations 2017 S.R. No. 18/2017

9

Schedule 1 FORM 1

Regulation 13(1)(a)

WARNING TO OWNER—CHANGE OF LEGAL RIGHTS Under section 40 of the Domestic Building Contracts Act 1995 (the Act) a builder cannot, under a major domestic building contract, charge more than a fixed percentage of the total contract price at the completion of each stage of building a home.

The Act also allows the parties to a major domestic building contract to agree in writing to change the stages and the percentage of the contract price to be paid at the completion of each stage.

There are several ways in which a particular major domestic building contract can vary from the normal and which might mean that different stages and percentages to those fixed in section 40 of the Act are appropriate for that contract. These are exceptional cases. Some examples of these cases may include—

• where it is very expensive to prepare the land for building for example,where the site is steep or rocky;

• where the home is so large that it will take a long time to complete, andintermediate progress payments are therefore required;

• where exceptionally expensive finishes are required, meaning that thefinal stage will represent a much larger proportion of the whole price;

• where significant work is required on a later stage of the contract beforean earlier stage can be fully completed;

• where an architect is engaged to independently assess the value ofcompleted work for progress payments.

You should not agree to progress payments that differ from those set out in section 40 of the Act unless your home is unusual in some way and you are SURE THAT DIFFERENT PROGRESS PAYMENTS ARE NECESSARY and you understand clearly why the change is needed in the case of your particular home.

If you have any doubts, you could contact—

• Consumer Affairs Victoria; or

• Law Institute of Victoria; or

• Royal Australian Institute of Architects.

Attachment: e. Form 1 & Form 2

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Schedule 1


10

I acknowledge that I have read this warning before signing the contract

Signature of building owner ____________

Date ____________

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Schedule 1


11

FORM 2 Regulation 13(1)(b)

PROGRESS PAYMENTS

The parties agree that— (i) the progress payments set out in section 40 of the Domestic Building

Contracts Act 1995 do not apply; and

(ii) instead the stages and percentages of the contract price and amountspayable are as follows—

Name of stage

Work involved in Stage (If this stage is not the same as a stage defined in section 40(1) of the Domestic Building Contracts Act 1995, describe the work that is involved in this stage.)

Percentage of total contract price

Amount of progress payment

Signature of building owner ____________

Date ____________

AND

Signature of builder ____________

Date ____________

═════════════

Attachment: e. Form 1 & Form 2

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VARIATION NOTICE

VARIATION TO CONTRACT

Name of Contractor: (Contractor)

CONTRACT DETAILS

Proposal Reference:

Project:

Site Address:

Date of Contract signed by the Owner and by the Contractor:

VARIATION DETAILS

Details of proposed variation:

PRICE/TIMING DETAILS

Increase Decrease (tick as appropriate) the project cost by: $ (plus GST)

Increase Decrease (tick as appropriate) the construct period by days Weeks (complete as appropriate)

REQUEST FOR VARIATION I request that the Contract be varied as described above. I agree and acknowledge that this request will become binding on me/the Owner upon acceptance by the Contractor.

OWNER NAME/S:

OWNER SIGNATURE/S:

CONTRACTOR NAME:

CONTRACTOR SIGNITURE:

DATE:

Attachment: f. Variation notice

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