Victorian Numbered Regulations

DOMESTIC BUILDING CONTRACTS REGULATIONS 2007 (SR NO 25 OF 2007) - SCHEDULE

SCHEDULE

Sch.

FORM 1

Regulation 12(a)

WARNING TO OWNER—CHANGE OF LEGAL RIGHTS

Section 40 of the Domestic Building Contracts Act 1995 provides that a builder cannot 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 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 contract can vary from the normal, and it is these exceptional cases which have caused the law to allow for these changes.

Examples would include—

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

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

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

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

You should not agree to progress payments different from that provided in the Act unless your house 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 house.

If you have any doubts, you could contact
Sch.

Housing Industry Association

The Master Builders' Association of Victoria

Consumer Affairs Victoria

Royal Australian Institute of Architects

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

Signature of Building Owner

FORM 2

Sch.

Regulation 12(b)

PROGRESS PAYMENTS

The parties agree—

              (i)     that the progress payments fixed by section 40 of the Domestic Building Contracts Act 1995 do not apply; and

              (ii)     that instead the percentages of the contract price and amounts payable are as follows—

Name of stage	If this stage is not the same as a stage defined in section 40(1) of the Domestic Building Contracts Act 1995 , what does this stage mean?	Percentage of total contract price	$

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