41Deposits

41 Deposits

(1)  In this section –

off-site work, in relation to a residential building work contract, means work that –

(a) relates to or forms part of residential building work; and

(b) is performed at a place that is not the place at which an object resulting from the performance of the residential building work is to be finally installed or constructed under the contract;

set amount means –

(a) the amount, above $20 000, prescribed under a regulation as the set amount; or

(b) if an amount is not prescribed for paragraph (a)  – $20 000.

(2)  A building contractor must not, before starting to perform residential building work under a residential building work contract, demand or receive a deposit under the contract of more than –

(a) if the contract price is equal to or more than the set amount and is not a contract price to which paragraph (c) applies –5% of the contract price; or

(b) if the contract price is less than the set amount and is not a contract price to which paragraph (c) applies – 10% of the contract price; or

(c) for a residential building work contract under which the value of the off-site work is more than 50% of the contract price – 20% of the contract price.

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.

(3)  In this section, a reference to the contract price for a contract includes, for a cost-plus contract, a reference to the estimated amount for the contract.