Domestic Building Contract Act 1995

Question 1

What is a Prime Cost Item (PC)?

Answer 1

Fixture or fitting (boxed item) that’s been selected or its price is unknown at the time of signing contract.

Question 2

Purpose of the Domestic Building Act?

Answer 2

Regulate Contracts
Provide for dispute resolution
Require builders have insurance

Question 3

What is a Provisional Sum (PS) Item?

Answer 3

An estimate allowed of the cost of carrying out particular work. Labour or materials that a builder cannot define at the time of signing the contract.

Question 4

Deposit Limits for Contracts under and over $20,000

Answer 4

5% over $20k
10% under 20k
Breach 100 Penalty Points

Question 5

How many penalty points for misleading info on PS and PC items

Answer 5

35 Penalty Points

Question 6

How long is a cooling off period after signing a contract?

Answer 6

5 clear business days

Question 7

When can you have a cost plus contract

Answer 7

1 million + contract
If reno, restoration, refurb of an existing building and is difficult to cost.

Question 8

Limits on progress payments - Method A contract

Answer 8

Deposit 5%
Base 10%
Frame 15%
Lock-up 35%
Fix 25%
Completion - Balance

Question 9

When can a builder enter into a domestic builder contract that has an escalation clause?

Answer 9

If contract price is more than $500,000

Question 10

How long does a builder have to give a copy of a contract to the owner?

Answer 10

As soon as is practicable, no later than 5 clear business days.
Breach: 20 penalty points + 1 point per day