Western Australian Current Acts

BUILDING AND CONSTRUCTION INDUSTRY (SECURITY OF PAYMENT) ACT 2021 - SECT 10

10 .         Construction contracts to which Act does not apply

        (1)         This Act does not apply to a construction contract for home building work if —

            (a)         the principal is an individual; and

            (b)         the work is not carried out in relation to multiple dwellings or for the purposes of a residential development business of the principal; and

            (c)         the value of the contract does not exceed $500 000 (or any greater amount prescribed by the regulations for the purposes of this paragraph); and

            (d)         the contract is not between a head contractor and a subcontractor, and not between 2 subcontractors, in relation to the carrying out of the work.

        Note for this subsection:

                On the enactment of this Act, a construction contract the value of which is $500 000 (or another amount prescribed by the regulations) or more is not a home building work contract as defined in the Home Building Contracts Act 1991 .

        (2)         This Act does not apply to a construction contract to the extent that it provides that a party undertakes to carry out construction work, or supply related goods and services, as an employee (as defined in the Industrial Relations Act 1979 section 7(1)) of the party for whom the work is to be carried out or to whom the related goods and services are to be supplied.

        (3)         This Act does not apply to a construction contract to the extent that it provides that a party undertakes to carry out construction work, or supply related goods and services, as a condition of a loan agreement with a recognised financial institution.

        (4)         This Act does not apply to a construction contract to the extent that it forms part of a loan, guarantee or insurance agreement under which a recognised financial institution undertakes any of the following or to the extent that it provides that a party to the contract undertakes any of the following —

            (a)         to lend money or to repay money lent;

            (b)         to guarantee payment of money owing or repayment of money lent;

            (c)         to provide an indemnity with respect to construction work carried out, or related goods and services supplied, under the contract.

        (5)         This Act does not apply to a construction contract to the extent that it provides that the consideration payable for construction work carried out, or for related goods and services supplied, under the contract —

            (a)         is not monetary consideration; or

            (b)         is to be calculated otherwise than by reference to the value of the work carried out or the goods and services supplied.

        (6)         This Act does not apply to a construction contract to the extent that it deals with construction work carried out outside Western Australia or with related goods and services supplied for construction work carried out outside Western Australia.

        (7)         For the purposes of subsection (6), Western Australia includes any area of water adjacent to Western Australia —

            (a)         that is within the territorial limits of the State; or

            (b)         that is outside the territorial limits of the State if the construction contract is governed by the law of the State.