40Limits on progress payments

40 Limits on progress payments (1) In this section— ***base stage*** means— (a) in the case of a home with a timber floor, the stage when the concrete footings for the floor are poured and the base brickwork is built to floor level; (b) in the case of a home with a timber floor with no base brickwork, the stage when the stumps, piers or columns are completed; (c) in the case of a home with a suspended concrete slab floor, the stage when the concrete footings are poured; (d) in the case of a home with a concrete floor, the stage when the floor is completed; (e) in the case of a home for which the exterior walls and roof are constructed before the floor is constructed, the stage when the concrete footings are poured; ***frame stage*** means the stage when a home's frame is completed and approved by a building surveyor; ***lock-up stage*** means the stage when a home's external wall cladding and roof covering is fixed, the flooring is laid and external doors and external windows are fixed (even if those doors or windows are only temporary); ***fixing stage*** means the stage when all internal cladding, architraves, skirting, doors, built-in shelves, baths, basins, troughs, sinks, cabinets and cupboards of a home are fitted and fixed in position. (2) A builder must not demand or recover or retain under a major domestic building contract of a type listed in column 1 of the Table more than the percentage of the contract price listed in column 2 at the completion of a stage referred to in column 3. - **TABLE** - Column 1 Column 2 Column 3 - *Type of contract* *Percentage of contract price* *Stage* - Contract to build to lock-up stage 20% Base stage - " 25% Frame stage - Contract to build to fixing stage 12% Base stage - " 18% Frame stage - " 40% Lock-up stage | Contract to build all stages | 10% | Base stage | | --- | --- | --- | | " | 15% | Frame stage | | " | 35% | Lock-up stage | | " | 25% | Fixing stage | (3) In the case of a major domestic building contract that is not listed in the Table, a builder must not demand or receive any amount or instalment that is not directly related to the progress of the building work being carried out under the contract. (4) Subsections (2) and (3) do not apply if the parties to a contract agree that it is not to apply and do so in the manner set out in the regulations. (5) If a court finds proven a charge under subsection (2) or (3) against a builder, it may order the builder to refund to the building owner some or all of the amount the building owner has paid the builder under the contract. (6) This power is in addition to the power the court has to impose any other penalty. (7) Despite section 7, this section does not apply to a contract between a builder and the Crown or a public statutory authority. Division 5—End of the contract