7Application of Act

7 Application of Act (1) Subject to this section, this Act applies to any construction contract, whether written or oral, or partly written and partly oral, and so applies even if the contract is expressed to be governed by the law of a jurisdiction other than Victoria*.* (2) This Act does not apply to— (a) a construction contract that forms part of a loan agreement, a contract of guarantee or a contract of insurance under which a recognised financial institution undertakes— (i) to lend money or to repay money lent; or (ii) to guarantee payment of money owing or repayment of money lent; or (iii) to provide an indemnity with respect to construction work carried out, or related goods and services supplied, under the construction contract; or S. 7(2)(b) substituted by No. 42/2006 s. 8. (b) a construction contract which is a domestic building contract within the meaning of the **Domestic Building Contracts Act 1995** between a builder and a building owner (within the meaning of that Act), for the carrying out of domestic building work (within the meaning of that Act), other than a contract where the building owner is in the business of building residences and the contract is entered into in the course of, or in connection with, that business; or S. 7(2)(ba) inserted by No. 42/2006 s. 8. (ba) a construction contract for the carrying out of any work of a kind referred to in section 6 of the **Domestic Building Contracts Act 1995** relating to a residence other than— (i) a contract where the person for whom the work is, or is to be, carried out is a person who is in the business of building residences and the contract is entered into in the course of, or in connection with, that business; or (ii) a contract where the work carried out, or to be carried out, under the contract is, or is part of or is incidental to work to be carried out under another construction contract; or (c) a construction contract under which it is agreed that the consideration payable for construction work carried out under the contract, or for related goods and services supplied under the contract, is to be calculated otherwise than by reference to the value of the work carried out or the value of the goods and services supplied. (3) This Act does not apply to a construction contract to the extent to which it contains— (a) provisions under which a party undertakes to carry out construction work, or supply related goods and services, as an employee of the party for whom the work is to be carried out or the related goods and services are to be supplied; or (b) provisions under which a party undertakes to carry out construction work, or to supply related goods and services, as a condition of a loan agreement with a recognised financial institution; or (c) provisions under which a party undertakes— (i) to lend money or to repay money lent; or (ii) to guarantee payment of money owing or repayment of money lent; or (iii) to provide an indemnity with respect to construction work carried out, or related goods and services supplied, under the construction contract. (4) This Act does not apply to a construction contract to the extent to which it deals with— (a) construction work carried out outside Victoria; and (b) related goods and services supplied in respect of construction work carried out outside Victoria. (5) This Act does not apply to any construction contract, or class of construction contracts, prescribed for the purposes of this section. (6) This Act does not apply to a construction contract entered into before the commencement of this section.