41H Residential building contracts
For section 48B(2) and (2A) of the Act, a residential building
contract must include provisions:
(a) relating to prescribed building work that is to be carried out on
a single project (the work); and
(b) identifying the prescribed building contractor who will carry out
the work; and
(c) specifying the prescribed building contractor's registration
number entered in the register maintained under section 16 of
the Act; and
(d) specifying the extent of the work and the total contracted price
for the work; and
(e) if the contract provides for the payment of a deposit –
specifying the deposit payable to the prescribed building
contractor for carrying out the work, which must be no more
than 5% of the total contracted price; and
(f) unless paragraph (g) applies – specifying the percentage of
the total contracted price payable to the prescribed building
contractor after completion of a stage of the work in
accordance with the standard progress payments; and
(g) if the parties have agreed to a variation of the standard
progress payments or if the contract relates to the construction
of a retaining wall – specifying that progress payments are to
be made in accordance with a progress payment agreement
made under the contract; and
(h) relating to dispute resolution, subject to regulation 41HC.
41HA Standard progress payments
(1) Standard progress payments, under a residential building contract,
are as follows:
(a) no more than 10% of the total contracted price, payable after
completion of the work to the base stage;
(b) no more than 20% of the total contracted price, payable after
completion of the work to the frame stage;
(c) no more than 25% of the total contracted price, payable after
completion of the work to the enclosed stage;
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(d) no more than 30% of the total contracted price, payable after
completion of the work to the fixing stage;
(e) no more than 7% of the total contracted price, payable after
completion of the work to the practical completion stage;
(f) the remaining percentage of the total contracted price,
payable to the prescribed building contractor after completion
of the work to the final stage.
base stage means:
(a) for a building with a timber floor with base brickwork – the
stage when:
(i) the concrete footings for the floor are poured; and
(ii) the base brickwork is built to floor level; and
(iii) the bearers and joists are installed; or
(b) for a building with a timber floor without base brickwork – the
stage when:
(i) the stumps, piers or columns are completed; and
(ii) the bearers and joists are installed; or
(c) for a building with a suspended concrete slab floor – the stage
when:
(i) the concrete footings are poured; and
(ii) the formwork and reinforcing for the suspended slab are
installed; or
(d) for a building with a concrete floor other than a suspended
concrete slab floor – the stage when the floor is completed.
enclosed stage means the stage when:
(a) a building's external wall cladding is fixed; and
(b) the building's roof covering is fixed, regardless of whether:
(i) for a tile roof – pointings have been done; or
(ii) for a metal roof – scribing and final screwing off has
been done; and
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(c) the building's structural floor is laid; and
(d) the building's external doors are fixed:
(i) regardless of whether they are fixed only temporarily;
and
(ii) if a lockable door separating the garage from the rest of
the building is fixed – regardless of whether or not the
garage doors have been fixed; and
(e) the building's external windows are fixed, regardless of
whether they are fixed only temporarily.
final stage means:
(a) for work that requires an occupancy permit – the stage when
the permit has been granted for the work and a copy of the
permit has been given to the contracting owner of the
(b) for work that does not require an occupancy permit – the
stage when the prescribed building contractor:
(i) has made all relevant declarations required under the
Act in relation to the work and has given the contracting
owner a copy; and
(ii) has given the contracting owner a copy of all relevant
certificates and documents required under the Act in
relation to the work.
fixing stage means the stage when all the building's internal lining,
architraves, cornice, skirting, doors to rooms, baths, shower trays,
wet area tiling, built-in shelves, built-in cabinets and built-in
cupboards are fitted and fixed in position.
frame stage means the stage when a building's frame is
completed.
practical completion stage means the stage when the building
work has been completed, apart from minor omissions or minor
defects.
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41HB Progress payment agreement
(1) A progress payment agreement under a residential building
contract must:
(a) be in the approved form and signed by the parties to the
contract; and
(b) state that the parties to the contract have agreed to a variation
of the standard progress payments; and
(c) specify the percentage of the total contracted price for the
prescribed building work that is payable to the prescribed
building contractor after completion of each stage of the work
(up to the final stage); and
(d) give details of each stage of the work mentioned in
paragraph (c); and
(e) specify the remaining percentage payable to the prescribed
building contractor after completion of the work to the final
stage, which must be no less than 3% of the total contracted
price.
(2) For subregulation (1), final stage has the same meaning as in
regulation 41HA(2).
41HC Dispute resolution
(1) For regulation 41H(h), a provision of a residential building contract
that provides for dispute resolution is of no effect to the extent to
which the provision purports to:
(a) restrict or remove the rights of a person in relation to access to
a dispute resolution process available under any law in force
in the Territory; or
(b) require a dispute in relation to the contract to be referred to an
arbitrator, expert or other third party for a final and binding
decision.
(2) This regulation does not prevent the parties to a residential building
contract from entering into an agreement, after a dispute has arisen
under the contract, about the manner of resolving the dispute.
Division 2A Offences relating to residential building contracts
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Division 2A Offences relating to residential building contracts
41HD Unlawful contract
(1) A prescribed building contractor must not enter into a residential
building contract that does not comply with regulation 41H.
Maximum penalty: 100 penalty units.
(2) An offence against subregulation (1) is a regulatory offence.
(3) It is a defence to a prosecution for an offence against
subregulation (1) if the defendant establishes a reasonable excuse.
41HE Deposit and progress payments
(1) A prescribed building contractor who has entered into a residential
building contract must not request or receive a deposit from the
contracting owner of more than 5% of the total contracted price of
the prescribed building work specified in the contract.
(2) A prescribed building contractor must not request or receive from
the contracting owner:
(a) a payment for carrying out prescribed building work except as
a progress payment after completion of the stage of work to
which the progress payment relates, as specified in or under
the residential building contract for the work; or
(b) more than the percentage of the total contracted price that is
specified in or under the residential building contract.
(3) An offence against subregulation (1) or (2) is a regulatory offence.
(4) It is a defence to a prosecution for an offence against
subregulation (1) or (2) if the defendant establishes a reasonable
excuse.
(5) If a court finds a prescribed building contractor guilty of an offence
against subregulation (1) or (2), the court may, in addition to
imposing a penalty for the offence, order the contractor to refund to
the contracting owner some or all of the amount paid for the deposit
or prescribed building work.
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41HF Invoice for progress payment to include declaration
(1) A prescribed building contractor who issues an invoice requesting a
progress payment under a residential building contract must ensure
the invoice includes a declaration by the contractor that the
prescribed building work to which the invoice relates has been
completed.
(2) An offence against subregulation (1) is a regulatory offence.
(3) It is a defence to a prosecution for an offence against
subregulation (1) if the defendant establishes a reasonable excuse.