Exclusion of small‑scale residential contracts from retention money trust scheme
12 Exclusion of small‑scale residential contracts from retention money trust scheme
In this regulation —
associated structure means a granny flat, shed, patio, deck, pergola, carport, driveway, swimming pool or similar kind of structure;
community corporation has the meaning given in the Community Titles Act 2018 section 3(1);
dwelling means a building occupied or intended for occupation solely or mainly as a place of residence;
lot has the meaning given in the Land Tax Assessment Act 2002 Glossary clause 2;
strata company has the meaning given in the Strata Titles Act 1985 section 3(1).
For the purposes of section 70(1)(d), a construction contract for home building work that is a small‑scale residential contract is excluded from Part 4 of the Act.
A small‑scale residential contract is —
a construction contract in respect of a single dwelling between a head contractor and a subcontractor or between 2 subcontractors; or
a construction contract for an associated structure connected to, or on the same lot as, an existing or proposed single dwelling; or
a construction contract for an associated structure on common property under the Community Titles Act 2018 or the Strata Titles Act 1985 if the principal is an individual or a strata company or community corporation.
However, a construction contract that is one of a number of separate construction contracts for home building work is not a small‑scale residential contract if —
the parties to the construction contracts are the same; and
the work is to be carried out at the same lot or at adjacent lots; and
a single construction contract could have been entered into for the work; and
the construction contracts were not entered into after separate tender processes.
Note for this regulation:
Section 70(2) also excludes certain other construction contracts for home building work from the retention money trust scheme in Part 4 of the Act.
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