Deposit and progress payments
41HE Deposit and progress payments
A prescribed building contractor who has entered into a residential building contract must not request or receive a deposit from the contracting owner of more than 5% of the total contracted price of the prescribed building work specified in the contract.
Maximum penalty: 50 penalty units.
A prescribed building contractor must not request or receive from the contracting owner:
a payment for carrying out prescribed building work except as a progress payment after completion of the stage of work to which the progress payment relates, as specified in or under the residential building contract for the work; or
more than the percentage of the total contracted price that is specified in or under the residential building contract.
Maximum penalty: 50 penalty units.
An offence against subregulation (1) or (2) is a regulatory offence.
It is a defence to a prosecution for an offence against subregulation (1) or (2) if the defendant establishes a reasonable excuse.
If a court finds a prescribed building contractor guilty of an offence against subregulation (1) or (2), the court may, in addition to imposing a penalty for the offence, order the contractor to refund to the contracting owner some or all of the amount paid for the deposit or prescribed building work.
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