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].