(a) unforeseeable cost increases resulting from changes to government taxes or charges; or (b) prime cost items or provisional sums. (2) A builder must not enter into a domestic building contract that contains a cost escalation clause unless— (a) the contract price is more than $500 000 (or any higher amount fixed by the regulations); or (b) the clause is in a form approved by the Director and complies with any relevant requirements set out in the regulations. 100 penalty units. (3) A cost escalation clause in a domestic building contract is void unless— (a) before the contract was entered into, the builder gave the building owner a notice in a form approved by the Director explaining the effect of the clause; and (b) the building owner places her, his or its signature or seal or initials next to the clause. 16 Builder must not seek more than the contract price (1) A builder who enters into a domestic building contract must not demand, recover or retain from the building owner an amount of money under the contract in excess of the contract price unless authorised to do so by this Act. 100 penalty units. (2) Subsection (1) does not apply to any amount that is demanded, recovered or retained in respect of the contract as a result of a cause of action the builder may have that does not involve a claim made under the contract.
(a) unforeseeable cost increases resulting from changes to government taxes or charges; or (b) prime cost items or provisional sums. (2) A builder must not enter into a domestic building contract that contains a cost escalation clause unless— (a) the contract price is more than $500 000 (or any higher amount fixed by the regulations); or (b) the clause is in a form approved by the Director and complies with any relevant requirements set out in the regulations. 100 penalty units. (3) A cost escalation clause in a domestic building contract is void unless— (a) before the contract was entered into, the builder gave the building owner a notice in a form approved by the Director explaining the effect of the clause; and (b) the building owner places her, his or its signature or seal or initials next to the clause. 16 Builder must not seek more than the contract price (1) A builder who enters into a domestic building contract must not demand, recover or retain from the building owner an amount of money under the contract in excess of the contract price unless authorised to do so by this Act. 100 penalty units. (2) Subsection (1) does not apply to any amount that is demanded, recovered or retained in respect of the contract as a result of a cause of action the builder may have that does not involve a claim made under the contract.
95-91a074.docx