13Restrictions on cost plus contracts

13 Restrictions on cost plus contracts (1) A builder must not enter into a cost plus contract unless— (a) the contract is of a class allowed by the regulations for the purposes of this section; or (b) the work to be carried out under the contract involves the renovation, restoration or refurbishment of an existing building and it is not possible to calculate the cost of a substantial part of the work without carrying out some domestic building work. (2) A builder must not enter into a cost plus contract that does not contain a fair and reasonable estimate by the builder of the total amount of money the builder is likely to receive under the contract. (3) If a builder fails to comply with this section— (a) the builder cannot enforce the contract against the building owner; but S. 13(3)(b) amended by No. 15/2016 s. 10(1). (b) VCAT may award the builder the cost of carrying out the work plus a reasonable profit if VCAT considers that it would not be unfair to the building owner to do so. S. 13A inserted by No. 2/2000 s. 3.