14General contents of contracts

14 General contents of contracts

(1)  A building contractor who enters into a residential building work contract must ensure the contract –

(a) is in English and is readily legible; and

(b) sets out in full all the terms of the contract; and

(c) specifies the names of the parties to the contract; and

(d) if the building contractor holds a licence under the Occupational Licensing Act 2005 , specifies the number of the licence; and

(e) includes a description of, and any plans or specifications in relation to, the residential building work to be performed under the contract; and

(f) specifies either –

(i) the contract price; or

(ii) a method for calculating the contract price and an estimate of the contract price, as determined in accordance with the method of calculation, that is fair and reasonable; and

(g) specifies the date of practical completion or the method for estimating the date of practical completion; and

(h) sets out the warranties that are part of the contract under Part 6 ; and

(i) [Section 14 Subsection (1) amended by No. 9 of 2023, s. 53, Applied:01 Jul 2024] sets out provisions in relation to the matters, if any, specified in a determination, made under section 11A , for the purposes of this section; and

(j) includes the required checklist in relation to the contract; and

(k) has attached to it a copy of a residential building consumer guide that is in effect under section 81(3) , unless the building contractor has already given to the owner a copy of the guide.

Penalty:  In the case of –

(a) a body corporate, a fine not exceeding 800 penalty units; or

(b) an individual, a fine not exceeding 300 penalty units.