Western Australian Consolidated Acts

HOME BUILDING CONTRACTS ACT 1991 - SCHEDULE 1

[s. 7(4), 8(4), 9(4), 13(5), 19 and 20]

        [Heading amended by No. 19 of 2010 s. 4.]

1 .         Failure by builder

                If any condition set out in subsection (1) of section 9 is not fulfilled solely because the builder has failed to comply with the builder’s obligations under subsection (2) of that section, the contract is not affected but remains in force on the same terms and conditions except as otherwise agreed between the parties.

        [Clause 1 amended by No. 19 of 2010 s. 51.]

2 .         Failure by owner

                If any condition set out in subsection (1) of section 9 is not fulfilled solely because the owner has failed to comply with the owner’s obligations under subsection (2) of that section, the contract remains in force on the same terms and conditions until the parties agree otherwise, but subject to the provisions of clause 4.

        [Clause 2 amended by No. 19 of 2010 s. 51.]

3 .         Failure by builder and owner

                If any condition set out in subsection (1) of section 9 is not fulfilled and both the owner and the builder have, or neither the owner nor the builder has, failed to comply with their respective obligations under subsection (2) of that section, the contract remains in force on the same terms and conditions until the parties agree otherwise, but subject to the provisions of clause 4.

        [Clause 3 amended by No. 19 of 2010 s. 51.]

4 .         Rights of builder and owner

                Where clause 2 or 3 or section 13(4)(c) applies —

            (a)         the builder may by notice in writing to the owner —

                  (i)         increase the price stipulated in the contract by an amount set out in the notice; and

                  (ii)         specify when any increased amount is payable, which must be either —

                        (A)         not later than 10 working days after the notice is given; or

                        (B)         at the time of a progress payment;

            (b)         if the amount of an increase exceeds 5% of the price stipulated in the contract, the owner may terminate the contract in accordance with section 19 within 10 working days after receipt of notice under paragraph (a); and

            (c)         if the owner so terminates the contract, the owner is liable to compensate the builder for the reasonable costs incurred by the builder up to the date of termination.

        [Clause 4 amended by No. 19 of 2010 s. 51.]

5 .         Right of review

        (1)         If the owner considers that the amount of a price increase notified under clause 4(a) is excessive or unjustified, the owner may make a complaint under the Building Services (Complaint Resolution and Administration) Act 2011 section 5(2).

        (2)         On a complaint referred to in subclause (1) the builder is required to show that the price has been increased to reflect actual increases in costs between the date of the contract and the date of the notice under clause 4(a).

        [(3)         deleted]

        [Clause 5 amended by No. 19 of 2010 s. 51; No. 16 of 2011 s. 126.]

        [Schedule 1 amended by No. 57 of 1997 s. 73; No. 76 of 2000 s. 57 and 58; No. 37 of 2002 s. 20; No. 19 of 2010 s. 4 and 51.]