8Maximum deposit for residential building work

#### 8 Maximum deposit for residential building work 8 Maximum deposit for residential building work > > (1) The maximum amount of a deposit for residential building work is 10% of the contract price. A deposit for residential building work is a payment on account before work is commenced under a contract to do residential building work. > > > (2) A person must not— > > > > > (a) demand or receive payment of a deposit for residential building work if the amount of the payment exceeds the maximum imposed by this section, or > > > > > (b) enter into a contract under which the person is entitled to demand or receive payment of a deposit for residential building work if the amount of the payment exceeds the maximum imposed by this section. > > > > Maximum penalty—1,000 penalty units in the case of a corporation and 200 penalty units in any other case. > > > (3) The regulations may make provision concerning how a contract price is to be determined for the purposes of this section. > > > (4) This section does not apply to residential building work done under— > > > > > (a) a contract that is made between parties who each hold a contractor licence and is for work that each party’s contractor licence authorises the party to contract to do, or > > > > > (b) a contract to do specialist work that is not also residential building work. > > > > Note. > > > > The exception in paragraph (a) applies to a subcontracting arrangement between licensees, and to a contract between licensees for work to be done on premises that one of the licensees owns. > > **s 8:** Subst 1990 No 33, Sch 1 (2). Am 2001 No 51, Sch 8 \[5\]; 2004 No 101, Sch 4 \[1\]. Subst 2014 No 24, Sch 1 \[19\].