DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Victorian New Homes Contract

(THIS CONTRACT HAS BEEN DEVELOPED IN CONJUNCTION WITH THE HIA AND
IS AVAILABLE FOR USE ONLY BY SIMONDS HOMES)

OWNERS: Mr Muneeb Ahmed

JOB: 68140
LOT: 1148
SITE: Heggart Crescent
OFFICER SOUTH
VIC 3809

To verify your builder is a HIA member email enquiry@hia.com.au

© HIA Contracts Online (updated August 2017)
All rights reserved. No part of this document may be reproduced, stored, copied,
distributed or transmitted in any form or by any means without the prior written
consent of HIA.
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

NOTICE APPROVED BY THE DIRECTOR OF CONSUMER AFFAIRS

PURSUANT TO SECTION 31(n)
OF THE DOMESTIC BUILDING CONTRACTS ACT 1995

COOLING OFF PERIOD

NOTICE TO BUILDING OWNER: YOU MAY END THIS CONTRACT WITHIN FIVE CLEAR
BUSINESS DAYS AFTER RECEIPT BY YOU OF A SIGNED COPY OF THE CONTRACT
BY FILLING IN THE NOTICE BELOW AND GIVING IT TO THE BUILDER IN ONE OF THE
FOLLOWING WAYS:

(1) PERSONALLY;
(2) LEAVING IT AT HIS OR HER ADDRESS SET OUT IN THE CONTRACT WITH A
PERSON WHO APPEARS TO BE AT LEAST 16 YEARS OLD;
(3) SENDING IT BY PRE-PAID CERTIFIED MAIL TO THE ADDRESS SET OUT IN
THIS CONTRACT;
(4) SENDING IT BY FACSIMILE TO THE FACSIMILE NUMBER (IF ANY) SET OUT IN
THIS CONTRACT.

……
………………………………………………………………………………………………………………………………………………………………
DETACH ALONG DOTTED LINE

NOTICE THAT CONTRACT HAS ENDED

A Building Owner cannot withdraw from a contract under the Act if:

1. The Builder and the Building Owner have previously entered into a major
domestic building contract that is in substantially the same terms for the
carrying out of the work in relation to the same home or land; OR

2. The Building Owner received independent legal advice from a practicing

solicitor concerning the contract before entering into the contract.

To ................................................................................................................................. (Builder)

I/We ............................................................................................................................................

.................................................................................................................................. give notice

under our contract with you that the Contract is ended. Please refund the deposit less $100
and any out of pocket expenses incurred by you which I/we have previously approved.

Building Owner’s signature .....................................................................................................

.....................................................................................................

Date: .....................................................................................................
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Director of Consumer Affairs Victoria

Approved Domestic Building Contracts Checklist
Section 31(1)(r) of the Domestic Building Contracts Act 1995

This checklist must be included in major domestic building contracts entered into from 1 September 2016
in substantially the same form or to the same effect as follows.

Before signing this legally binding contract, check this list:

If the cost of the building work is more than $16,000, has an

insurance policy or certificate of currency for domestic building
insurance covering your project been issued and provided to you?
Yes No X
(Note: If not, the contract is conditional upon you receiving either an
insurance policy or a certificate of currency for domestic building
insurance.)

If this contract is conditional upon you receiving written approval for X

Yes No
finance, have you obtained such approval?

Have you appointed a private building surveyor or has a municipal

building surveyor been engaged?
(Note: If not, you will need to choose and engage a building Yes X No
surveyor before your building work starts so that a building permit
can be issued for your building work.)

If you answer ‘NO’ to any of the following questions that apply to your building project, you are not
ready to sign the contract:*

Have you had this contract long enough to read and understand it? Yes X No

Have you been provided with evidence that the builder named in
Yes X No
this contract is registered with the Victorian Building Authority?

Are the price and progress payments clearly stated? Yes X No

Do you understand how the price is calculated and may be varied? Yes X No

Has the builder assessed the suitability of the site for the proposed
Yes X No
works? If tests are necessary, have they been carried out?

If a deposit is payable, is it within the legal limit?

The maximum under the Domestic Building Contracts Act 1995 is:
Yes X No
1. 10% if the price is less than $20,000, or
2. 5% if the price is $20,000 or more.

Is the work shown and described clearly in the contract, plans and
specifications and any other relevant documents (such as Yes X No
engineering computations or soil report)?

Page 1 of 2
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Are your special requirements or standards of finish included in the

Yes X No
plans and specifications?

Are the commencement date and completion date clearly stated or

Yes X No
capable of being worked out?

Do you understand the procedure for extensions of time? Yes X No

Are any ‘provisional sums’ or ‘prime cost items’ clearly stated in the
Yes X No
schedules and understood by you?

Do you understand the procedure for variations of plans and

Yes X No
specifications?

Do you understand the circumstances in which you can end the

Yes X No
contract?

Did your builder give you a copy of the Domestic Building

Yes X No
Consumer Guide?

If yes, insert the date on which you were given a copy of this guide
23/03/2021
dd/mm/yyyy

Have you read the Domestic Building Consumer Guide and the
Yes X No
related information at consumer.vic.gov.au/buildingguide?

This checklist does not form part of the contract.

I/we have read and completed this checklist:

Signature/s

Date
dd/mm/yyyy

* Note: Not all of these questions will apply to a domestic building contract that covers a limited scope of
work, for example, a contract that is limited to the preparation of building plans and specifications.

(4 August 2016)

consumer.vic.gov.au/buildingindustry Page 2 of 2
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Particulars of contract 1
Date 1
Owners 1
Builder 1
The Building Works 1
Building Surveyor 2
Lending details 2
Domestic building insurer 2
The land 2
Schedule 1 4
Time for completion 4
Contract Price 4
Deposit 5
Planning approval 5
Building permit 5
Percentage if contract is ended 5
Number of days to make Progress Payments after stage completed and notice
5
received
Agreed interest for late Progress payments 6
Agreed damages for late completion of the Building Works 6
Percentage applicable to extra work 6
Lending body finance 6
Agreed damages for delays 6
Schedule 2 7
Prime cost items and provisional sum items and allowances 7
Schedule 3 8
Schedule 3 Method 1 9
Schedule 3 Method 2 Acknowledgment 10
Schedule 3 Method 2 Progress Payments 11
Schedule 4 13
Schedule 5 17
Signatures 18
Deed of guarantee and indemnity 19
GENERAL CONDITIONS 21
Clause 1. Definitions 21
Clause 2. Headings, footnotes, etc. 22
Clause 3. Contract complete in itself 23
Clause 4. Joint and several obligations 23
Clause 5. Assignment and sub-letting 23
Clause 6. Notices 23
Clause 7. Building Act 1993 insurance 24
Clause 8. Finance 24
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Clause 9. Deposit 24
Clause 10. Commencement and Building period 25
Clause 11. Statutory warranties 25
Clause 12. Owner must pay the Contract Price 25
Clause 13. Owner must provide essential information 27
Clause 14. Owner to supply documents 27
Clause 15. Copyright 27
Clause 16. Interpretation of Contract Documents 28
Clause 17. Owner must identify the Land 28
Clause 18. Building permit fees 28
Clause 19. Planning approvals and building permits 29
Clause 20. Insurance 30
Clause 21. Variations to statutory laws 31
Clause 22. Variations to State or Commonwealth tax laws 32
Clause 23. Requested variations 32
Clause 24. Effect of variations 32
Clause 25. Possession 33
Clause 26. All Weather Access 33
Clause 27. Owner must not direct Builder's workers 33
Clause 28. Owner must arrange Lending Body inspections 33
Clause 29. Builder to claim Progress Payments 34
Clause 30. Owner must make Progress Payment 34
Clause 31. Builder's right to agreed damages 34
Clause 32. Unfixed materials on Site 34
Clause 33. Prime Cost Items and Provisional Sum Items 35
Clause 34. Builder's right to extensions of time 36
Clause 35. Suspension of work 36
Clause 36. Final inspection 37
Clause 37. List of defects and Final Payment 37
Clause 38. Handover and Final Payment 38
Clause 39. Defects within the 3 month period 38
Clause 40. Owner's claim for agreed damages 39
Clause 41. Ending this Contract under bankruptcy or liquidation 39
Clause 42. Builder's right to end this Contract 39
Clause 43. Owner's right to end this Contract 40
Clause 44. Owner may get another Builder to finish work 41
Clause 45. Subcontracting 41
Clause 46. No waiver 41
Clause 47. Severance 41
Clause 48. Excluded items 41
Clause 49. Disputes 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Particulars of contract

Date
Insert date when contract is signed by both parties

This contract is dated the 23-Mar-2021

Owners
If the Owner is a company, a Director's Guarantee must be signed before this Contract is signed. See Deed of Guarantee and
Indemnity

NAME Mr Muneeb Ahmed

ADDRESS
SUBURB PAKENHAM STATE VIC POSTCODE 3810
ABN ACN
WORK HOME
FAX MOBILE

EMAIL

Builder
NAME
ADDRESS
SUBURB Melbourne STATE VIC POSTCODE 3004
ABN 35 050 197 610 ACN 050 197 610
WORK 03 9682 0700 HOME 03 9682 0800
FAX MOBILE

EMAIL
BUILDER'S REGISTRATION NUMBER CDB-U 49491
REGISTERED BUILDING PRACTITIONER HOMES VICTORIA PTY LTD (ACN 050 197 610)
HIA MEMBER NUMBER HIA MEMBERSHIP EXPIRY 27/09/2023

The Building Works (Brief description) as set out in the Specifications and Plans
These documents must be signed and dated with the Contract.
Double Brick veneer Dwelling as set out in the specification and plans

The Specifications include 5 pages that were prepared and supplied by the builder
There are 18 sheets of Plans that were prepared by and supplied by the builder
There are sheets in the Engineer's Design/s and it/they was/were, prepared by for the Builder

Page 1 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Building Surveyor (Clause 19)

BUILDING SURVEYOR Northpoint Building Surveyors Pty Ltd
ABN
ADDRESS Suite 1, 1-3 Albert Street
SUBURB Blackburn STATE VIC POSTCODE 3130
PHONE 9878 8500
FAX 9878 8022

EMAIL adminnorth@northpointbs.com.au
REG. NO. BS-U20159

I/we acknowledge that the building surveyor was appointed by me/us before this contract was signed.

Owner
NAME Mr Muneeb Ahmed

SIGNATURE sig

NOTE: Under the Building Act 1993 the owner of the land on which domestic work is to be carried out
must choose and appoint the building surveyor.

Lending details
Any lender
Lender 1
LENDER
ADDRESS
SUBURB STATE POSTCODE

Domestic building insurer

INSURER VMIA Insurance
ADDRESS Level 10 South, 161 Collins Street
SUBURB Melbourne STATE VIC POSTCODE 3000
PHONE 03 9270 6900
FAX 03 9270 6949

NAME OF INSURED Homes Victoria Pty Ltd

1. (a) Except for the Builder's interest in this Contract and the legal requirement for it to be
arranged in respect of the Building Works, the Builder receives no benefits in relation to
arranging such insurance.
(b) The Builder further confirms that such insurance may be arranged with an insurer of the
Owner's choice.
2. The cost to the Owner for this insurance is $774.40

Page 2 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

The land
LOT NO (IF APPLICABLE) 1148
Street Address
ADDRESS Heggart Crescent
SUBURB OFFICER SOUTH STATE VIC POSTCODE 3809

The Title Particulars are:

VOLUME NO FOLIO NO
PLAN OF SUBDIVISION NO PS827527W

Covenants, Restrictions and/or Easements of the Land

Page 3 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Schedule 1

1. Time for completion (Clause 10)

Building works to be carried out by the Owner or the Owner's agent are as listed in Schedule 5.
The building period includes 302 days of actual building work and the following estimates for delays:
• Inclement weather and the effects of inclement weather 10 days
• Weekends, public holidays, rostered days off and other foreseeable breaks in the continuity of
the work 45 days
• Other days that are reasonable having regard to the nature of the Building Works 25 days
The building period is 382 days.

Note - the building period is the total of the days of actual building work and the estimates for delays.

The Builder has excluded from the Contract Price amounts payable to third parties in relation to the
Building Works. The work or things listed below are not included in the Contract Price and the
Builder's reasonable estimate of the amount payable in respect to them are listed as follows:
Item Estimate
1. Conveying connection or installation of

(a) Gas $50.00

(b) Electricity $500.00

(c) Telephone to one point $300.00

(d) Water $100.00

(e) Sewage $.00

2. Issue of Planning permit

3. Issue of building permit

4. Other

(a) Infrastructure Levy $1,000.00

2. Contract Price (Clause 12)

PRICE EXCLUDING GST: $391,665.45
GST ON THE ABOVE AMOUNT: $39,166.55
THE CONTRACT PRICE IS: $430,832.00
The contract price is GST inclusive.

The price of this Contract is not fixed, and may be altered as a result of:
• additional costs caused by any deficiency or conflict within the Contract Documents (Refer to
Clause 16);
• additional building permit fees (Refer to Clause 18);
• variations including those required by the council/registered building surveyor (Refer to
Clause 21);
• the cost of providing access where applicable (Refer to Clause 26);

Page 4 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

• interest on overdue payments (Refer to Clause 31);

• the actual cost of Prime Cost Items and work for which Provisional Sums have been specified
exceeding the estimates set out in the Contract (Refer to Clause 33).

Ensure that you fully understand how the clauses dealing with these matters affect
the Contract Price

WARNING TO OWNER AS TO PRIME COST ITEMS

It is always better to get a fixed price for all work, However, some fixtures and fittings may need to be
selected after the contract is signed e.g. a stove, type of taps etc. If these items are specified as
Prime Cost Items the Builder will allow an amount in the Contract Price which should cover the
expected cost of the item.

NOTE: If the actual cost is more than the amount allowed you will have to pay the extra amount. You
may also have to pay the Builder's margin in the extra amount. If this is intended, the margin should
be specified, or cannot be claimed unless the Owner agrees in writing to such additional amount. If
the Prime Cost is less than that allowed for in the Contract, the difference should be deducted from
the Contract Price.

3. Deposit (Clause 9)
$21,541.60 (5.00 % of Contract Price)

4. Planning approval (Clause 19)

PERSON RESPONSIBLE FOR OBTAINING AND PAYING FOR PLANNING APPROVAL: The Owner
NUMBER OF DAYS TO OBTAIN PLANNING APPROVAL: within 25 days of the date of this Contract

5. Building permit (Clause 19)

PERSON RESPONSIBLE FOR OBTAINING AND PAYING FOR BUILDING PERMIT ON BEHALF OF THE
OWNER:
Simonds Homes
NUMBER OF DAYS TO OBTAIN BUILDING PERMIT: within 28 days of:
(a) if planning approval is required the date that the planning approval is received by the person
responsible for obtaining the Building Permit; or
(b) if planning is not required, the date of this contract

6. Percentage if contract is ended (Clauses 19.4, 21.4)

(if no percentage stated then 20% to cover the Builder's overheads, supervision and profit)

30.00%

7. Number of days to make Progress Payments after stage

completed and notice received (Clause 30)
7 days

Page 5 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

8. Agreed interest for late Progress payments (Clause 31)

14.00% per annum

9. Agreed damages for late completion of the Building Works

(Clause 40)
(if nothing stated then $250 per week)
$250.00 per week

10. Percentage applicable to extra work (Clauses 12.2, 17.2, 21.2)

(if no percentage stated then 20% to cover Builder's overheads, supervision and profit)

30.00%

11. Lending body finance (Clause 8.0)

Finance with approval to be within 21 days from the date of this Contract (14 days unless otherwise
agreed) $430,832

12. Agreed damages for delays (Clause 34.3)

(if nothing stated then $250 per week)

$250.00 per week

Page 6 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Schedule 2

Prime cost items and provisional sum items and

allowances
(Refer to procedures in Clauses 12 and 33)
The parties agree that the following allowances are included in the Contract Price. The allowances
included in the Contract Price by the Builder for Prime Cost Items and Provisional Sum Items
must be a reasonable estimate of the price for the supply of the item and/or the work to be performed,
in accordance with Sections 20, 21 and 22 of the Domestic Building Contracts Act 1995.
Prime cost items - fittings, fixtures, materials only
Margin (if
nothing
Item Quantity Rate Allowance
stated
20%)

Provisional sum items - labour and materials

Margin (if
nothing
Item Quantity Rate Allowance
stated
20%)

Page 7 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Schedule 3
CONSTRUCTION STAGES APPLICABLE TO METHOD 1 PROGRESS
PAYMENTS
'Base Stage' (a) in the case of a home with a timber floor, the stage when the concrete footings for
means the floor are poured and the base brickwork is built to floor level;
(b) in the case of a home with a timber floor with no base brickwork, the stage when the
stumps, piers or columns are completed;
(c) in the case of a home with a suspended concrete slab floor, the stage when the
concrete footings are poured;
(d) in the case of a home with a concrete floor, the stage when the floor is completed;
(e) in the case of a home for which the exterior walls and roof are constructed before
the floor is constructed, the stage when the concrete footings are poured;
'Frame stage'
the stage when a home's frame is completed and approved by a building surveyor;
means
'Lock-up stage' the stage when a home's external wall cladding and roof covering is fixed, the flooring is
means laid and external doors and external windows are fixed (even if those doors or windows
are only temporary);
'Fixing stage' the stage when all internal cladding, architraves, skirting, doors, built-in shelves, baths,
means basins, troughs, sinks, cabinets and cupboards of a home are fitted and fixed in
position;
'Completion'
the Building Works are complete in accordance with the Contract Documents.
means

NOTE: This table is prescribed by Section 40 of the Domestic Building Contracts Act 1995. In the case of a
Domestic Building Contract that is not listed in the Table, a Builder must not demand or receive any amount
or instalment that is not directly related to the progress of the Building Works being carried out under the
Contract.
TABLE
Type of contract Percentage of Contract Price Stage

20% Base Stage

Contract to build to lock-up
25% Frame Stage

12% Base Stage

Contract to build to fixing stage 18% Frame Stage

40% Lock-up stage

10% Base Stage

15% Frame Stage

Contract to build all stages
35% Lock-up Stage

25% Fixing Stage

Page 8 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Schedule 3 Method 1
PROGRESS PAYMENTS

NOTE: Use Method 1 unless the Building Works differ from the usual. If Method 2 is to be used the Owner
must read and sign Form 1 and Form 2 in Schedule 3 Method 2. Delete whichever method is inapplicable.
Method 1
There are five stages in Method 1. These are described below. Fill in the percentage if the Contract Price
and the amount payable for each of the stages applicable to your Contract (for example, if the Contract is to
build to lock-up stage, fill in only the first 3 stages and delete the last 2 stages; if the Contract is to complete
the Building Works complete all 5 stages).
There are five different types of construction for the Base Stage - refer to Schedule 3. In the space *
provided below fill in (a), (b), (c), (d) or (e) to indicate which type will be used under this Contract.

Stage Percent

Deposit

Base Stage 10.00%

Frame Stage 15.00%

Lock-up Stage 35.00%

Fixing Stage 25.00%

Completion

* Base stage: in the case of a home with a timber floor, the stage when the concrete footings for the floor
are poured and the base brickwork is built to floor level

Page 9 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Schedule 3 Method 2 Acknowledgment

WHEN METHOD 2 IS TO BE USED FOR PROGRESS PAYMENTS ALL OWNERS MUST SIGN THIS FORM
AND FORM 2 (NEXT PAGE) AND THE BUILDER MUST SIGN FORM 2 BEFORE THE CONTRACT IS
SIGNED.
FORM 1
Regulation 13(1)(a)
WARNING TO OWNER - CHANGE OF LEGAL RIGHTS
Under Section 40 of the Domestic Building Contracts Act 1995 (the Act) a Builder cannot, under a
major domestic building contract, charge more than a fixed percentage of the total Contract Price at the
completion of each stage of building a home.
The Act also allows the parties to a major domestic building contract to agree in writing to change the stages
and the percentage of the Contract Price to be paid at the completion of each stage.
There are several ways in which a particular major domestic contract can vary from the normal and which
might mean that different stages and percentages to those fixed in Section 40 of the Act are appropriate for
that contract. These are exceptional cases. Some examples of these cases may include:
• where it is very expensive to prepare the land for building, for example, where the site is steep or rocky;
• where the home is so large that it will take a long time to complete, and intermediate Progress
Payments are therefore required;
• where exceptionally expensive finishes are required, meaning that the final stage will represent a much
larger proportion of the whole price;
• where significant work is required on a later stage of the contract before an earlier stage can be fully
completed;
• where an architect is engaged to independently assess the value of the completed work for Progress
Payments.
You should not agree to Progress Payments that differ from those set out in Section 40 of the Act unless
your home is unusual in some way and you are SURE THAT DIFFERENT PROGRESS PAYMENTS ARE
NECESSARY and you understand clearly why the change is needed in the case of your particular home.
If you have any doubts, you could contact:
• Consumer Affairs Victoria; or
• Law Institute of Victoria; or
• Royal Australian Institute of Architects
I acknowledge that I have read this warning before signing the Contract.

/s1/\\signer1_sig

Signature of building owner:

Mr Muneeb Ahmed
23-Mar-2021
Date:

Page 10 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Schedule 3 Method 2 Progress Payments

NOTE: Under Method 2 the Builder and the Owner must agree on stages at which Progress Payments
must be made. Progress Payments are due and payable after completion of the stages of the Building
Works as listed below. Remember, the Owner must read and sign Form 1 (previous page) and Form 2.

FORM 2
Regulation 13(1)(b)
The parties agree -
(i) that the Progress Payments fixed by Section 40 of the Domestic Building Contracts Act 1995
do not apply; and
(ii) instead the stages and percentages of the Contract Price and amounts payable are as follows:

Work involved in stage

Percentage of Amount of
Name of stage (If this stage is not the same as a stage defined in total contract progress
Section 40(1) of the Domestic Building Contracts Act
price payment
1995, describe the work that is involved in this stage.)

Deposit 5.00% $21,541.60

Base The same as defined in section 40(1) of the Domestic

Building Contracts Act 1995 (Vic). 20.00% $86,166.40

Frame As defined in section 40(1) of the Domestic Building

Contracts Act 1995 (Vic), excluding garage doors on all
single and double storey homes and garage roof trusses
on double storey homes or the equivalent of 40% of the
Building Works. 15.00% $64,624.80
Lock Up As defined in section 40(1) of the Domestic Building
Contracts Act 1995 (Vic), excluding garage doors on all
single and double storey homes and garage roof trusses
on double storey homes or the equivalent of 70% of the
Building Works. 30.00% $129,249.60
Fixing As defined in section 40(1) of the Domestic Building
Contracts Act 1995 (Vic), including garage roof trusses
on double storey homes, but excluding the following on
all homes garage doors; baths; spas; sinks; basins; built
in shelves; bench tops; and feature pantry doors or the
equivalent of 85% of the Building Works. 15.00% $64,624.80

Completion As defined in accordance with the definition of

‘Completion’ under general condition 1 of this Contract,
subject to special condition 1. NOTE: The Building Period
ends when the Builder has issued the Owner with a
Notice of Completion 15.00% $64,624.80

Total 100.00% $430,832.00

/s

Signature of building owner:

Mr Muneeb Ahmed

Page 11 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

23-Mar-2021
Date:

AND

Signature of builder: /bs1/\\builder_sig

Signed for and on behalf of: Homes Victoria Pty Ltd

23-Mar-2021
Date:

Page 12 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Schedule 4
SPECIAL CONDITIONS
SPECIAL CONDITIONS
Unless otherwise stated, references to clauses numbers in these Special Conditions below are to clauses in
the General Conditions of this Contract.
1. Completion – Installation of Appliances
1.1 The Building Works will be deemed to have reached Completion even if the following appliances (if
included in the Building Works) are yet to be installed in the Building Works:
(a) Cook Top;
(b) Range Hood;
(c) Oven;
(d) Hot Water Service;
(e) External heating and/or cooling units;
(f) Products associated with the Darwin package; and
(g) Dishwasher.
1.2 The abovementioned appliances will be installed after Completion in consultation with the Owner and
upon installation will be the Owner’s responsibility to insure against damage and theft. The Owner will have
no claim for loss or damage against the Builder if the above-mentioned appliances are damaged or stolen
after they have been installed.
2. Building Surveyor
2.1 The Owner’s nomination of the Private Building Surveyor is noted in clause 4 of the Preliminary
Agreement.
(a) If the Owner has selected a Building Surveyor in the Preliminary Agreement (and not appointed a
Building Surveyor under “Other”) and the Builder is identified in item 5 of Schedule 1 as the party
responsible for obtaining building permit, then the Builder is responsible for paying for fees of the Building
Surveyor appointed by the Owner and this cost is included in the contract price. The Owner authorises the
Builder to make applications, appeals or referrals under the Building Act 1993 for the Building Works.
(b) If the Owner has selected a “Other” Building Surveyor in the Preliminary Agreement and the Builder is
identified in item 5 of Schedule 1 as the party responsible for obtaining building permit, then the Owner is
responsible for paying any cost difference in the fees of the building surveyor appointed by the Owner
(compared to the named Building Surveyor for the relevant Region in the Preliminary Agreement). The
Owner acknowledges that this additional cost is not included in the contract price. The Owner authorises the
Builder to make applications, appeals or referrals under the Building Act 1993 for the Building Works.
2.2 The Owner must sign all documents and do all the acts required by the Builder to obtain all permits,
consents and certificates from the Building Surveyor or any Statutory or other authority that has the power
to affect the Building Works.
3. Variations
Prior to the Builder being required to give effect to any variation to the Building Works under clause 23, the
Owner must:
(a) Provide the Builder with satisfactory evidence of the Owner’s capacity to pay the sum of the variation in
the form of a bank statement dated no older than 1 week prior to finalising the variation request; or
(b) If the Contract is subject to finance, satisfactory written evidence by the Lending Body that such further
monies are available to the Owner prior to finalising the variation request.
4. Interpretation of Contract Documents
Delete the bullet points in clause 16.0 and replace them with the following:

Page 13 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

(a) the Special Conditions of this Contract as set out in Schedule 4;

(b) these Contract conditions;
(c) the Specification, which includes the following documents (to be given priority in the order listed below):
(i) the Simonds’ Contract Specification document;
(ii) the Simonds’ Standard Inclusions;
(iii) any other documents attached to the Contract Specification and included in this Contract;
(d) the Plans.
5. Consumer services
The Owner is liable, from the date of this Contract, for:
(a) all connection costs;
(b) service provider account establishment fees;
(c) usage or consumption charges for water and power;
associated with consumer services (including but not limited to electricity, gas and water) available (or to be
made available) to the Land and for the purposes of giving effect to this special condition and having such
services transferred into the Owner’s name, consents to the release of the Owner’s personal information.
6. Contaminants
6.1 A new definition of “Contaminant” is inserted in Clause 1.0 as follows:
‘Contaminant’ means any polluting or poisonous substance or matter that may pose a risk to the health and
safety of any person or that may affect or degrade the quality of the Land or Building Works.”
6.2 If at any time the Builder reasonably believes, suspects or is made aware that there may be any
asbestos or other Contaminant on or in the Land then:
(a) The Builder may immediately suspend all works to ensure there is no risk to the Owner, the Builder and
all contractors and visitors;
(b) The Owner must conduct, at the cost of the Owner, all necessary tests to identify the suspect substance
or matter and to determine whether it is a Contaminant;
(c) if there is a Contaminant present then:
(i) it is the obligation of the Owner to conduct, at the cost of the Owner, all necessary remedial works and
comply with all associated government acts, regulations or requirements, including the obtaining or
provision of all necessary compliance and/or clearance certifications (Contamination Works);
(ii) the Builder may (acting reasonably):
▪ extend the Building Period under clause 34;
▪ suspend or continue the suspension of Buildings Works under clause 35; or
▪ end this Contract under clause 42.
6.3 Clause 35.0 is amended by inserting a third bullet point as follows:
“ ⚫ Any Contaminant is found or suspected to be on the Property.”
7. Provision of personal information
The Owner authorises the Builder to provide personal information about the Owner to any third party, being:
• name;
• address; and
• other contact details or information provided under this Contract or otherwise communicated to the Builder;
for the following purposes:
• for the provision and connection to the site, or gas, electricity, water and any other utility necessary;
• to the Builder’s nominated finance broker for purposes of assisting the Owner in attaining finance to
ensure the Owners ability to meet their financial obligations under this Contract; and
• To a supplier or contractor for the purpose of installing goods and services into the Property (as required

Page 14 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

under this Contract to carry out the Building Works or any maintenance works required to satisfy the
Builder’s warranty obligations).
8. Owner as trustee
If the Owner is a trustee of a trust, the Owner (where the Owner is a real person) or the Directors of the
trustee (where the trustee is a company) must before executing this contract, execute a Deed of Guarantee
and Indemnity in the same form as included with this contract, save for the following amendments:
8.1 “Operative” is amended by adding a new clause 1A:
1A. Owner
“The Owner has executed this contract as trustee of a trust. The guarantor is a trustee of the trust, or a
director of a trustee of the trust, and gives this guarantee and indemnity in his or her personal capacity.”
8.2 Clause 4 of the Guarantee is amended by the addition of the following words at the end of the clause:
“or if a trustee of a trust, the trustee or the trust is wound up or declared insolvent or bankrupt, or the trust
is dissolved for any reason.”
9. Contract Complete in itself
Clause 3.0 is deleted and replaced with the following clause:
“3.0 The parties have not relied on any representation or warranty in entering into this Contract, except
those expressly set out in this Contract and the signed Preliminary Agreement.”
10. Builder’s right to Terminate this Contract
The first dot point in clause 42.1 is to be amended to be:
“Does not give the Builder any of the essential information required by Clause 13 (and if at the time of this
Contract the Owner provides proof of its right to be Owner of the Land but is not the registered owner of the
Land, the Owner failed to provide the essential information required by Clause 13 within 90 days of the
Owner being the registered proprietor of the Land).”
11. Lifetime Structural Guarantee
The Owner acknowledges and agrees to the terms and conditions of the lifetime structural guarantee,
attached to this Contract, in Schedule 4 Annexure A (Lifetime Structural Guarantee).
12. Bank Statement
A new clause 8.3 is to be added:
“If this Contract is not subject to finance, the Owner must provide the Builder with a bank statement, no older
than 1 week prior to Commencement, to confirm the Owner’s capacity to pay the Contract Price.”
13. Commencement
13.1 Clause 1.0 is amended by insertion of the following definition:
“‘Final Version Construction Documents’ means the Specification, Plans (including but not limited to floor
plans, elevation plans, sections and details and selections schedules) and any other drawings associated
with the Building Works, accepted by the relevant building surveyor for the purposes of issuing the
necessary building permits.”
13.2 Clause 13.0 is amended by insertion of the following last dot:
“. Final Version Construction Documents signed by the Owner.”
Other changes to the HIA Contract
Schedule 1 – the table in Item 1 regarding third party costs
(a) Gas (including both connection and any usage costs)
(b) Electricity (including both connection and any usage costs)
(c) Water (including both connection and any usage costs)
(d) Telephone (to one point)
(e) Sewerage
Schedule 1 – Item 2

Page 15 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Add a further dot point at the end of the list as follows:

(d) Additional costs identified in the Simonds’ Contract Specification (as initial and signed by both the
Builder and the Owners at the time of signing this Contract).
Schedule 4 Annexure A – Lifetime Structural Guarantee

Page 16 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Schedule 5
EXCLUDED ITEMS (Clause 48)

The Owner acknowledges that the Contract Building Works do not include those items of building work
and materials listed below and accepts full responsibility for this work and building materials.

The Owner must ensure that, when required by Victorian legislation, a person engaged by them to
complete excluded building work is registered as a building practitioner, uses a major domestic building
contract, and provides domestic building insurance.

Owner
NAME Mr Muneeb Ahmed

SIGNATURE

Page 17 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Signatures
This contract is made between the Owner and the Builder.
The schedules form part of this contract.
The Owner has read and understood this contract.

Owner
NAME Mr Muneeb Ahmed

SIGNATURE gner1_sig

WITNESS
SIGNATURE NOT APPLICABLE

WITNESS
NAME AND
ADDRESS NOT APPLICABLE

Builder
Andrew Flanagan
NAME

SIGNATURE
Signed for and on behalf of: Simonds Homes Victoria Pty Ltd

WITNESS
NAME NOT APPLICABLE

WITNESS
SIGNATURE NOT APPLICABLE

Please note
1. Where a company is signing: 'by A. Smith, Director' or 'Signed for and on behalf of XYZ Pty Ltd'
2. Where a partnership is signing: 'B. Bloggs in partnership with A. Bloggs and C. Bloggs'

NOTES: 1. Only sign this Contract when: All the Contract Documents required including Specifications and Plans are attached and signed; All the
details in the Schedules have been filled in. 2. The Builder must give the Owner a readily legible signed copy of this Contract within 5 clear Days after
it is signed.

Page 18 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Deed of guarantee and indemnity

Interpretation
BUILDER IS
OWNER IS

Guarantors
ADDRESS LINE 1
ADDRESS LINE 2
SUBURB STATE POSTCODE

Contract is that between the Builder and the Owner dated:

Background
The Owner executed the Contract at the Guarantor's request.
The Guarantor is aware of the Owner's obligations under the Contract.

Operative
1. Guarantee
The Guarantor guarantees to the Builder, the fulfilment of the Owner's obligations under the
Contract including but not limited to the due payment of all moneys arising out of the subject matter of
the Contract.
2. Indemnity
The Guarantor indemnifies the Builder against any claim, loss or damage arising out of the subject
matter of the contract caused by or resulting from any non-fulfilment of the Owner's obligations under
the Contract.
3. Principal Debtor
The Guarantor is deemed to be principal debtor jointly and severally liable with the Owner to
discharge the Owner's obligations under the Contract.
4. No Merger
The Guarantor agrees that this Deed does not merge on completion or on the ending of the Contract
by either party and continues notwithstanding that the Owner, if a corporation, is placed in liquidation
or if a person, is declared bankrupt.
5. No Release
The Guarantor is not discharged by:
◦ any variation to the Contract including a variation to the building works;
◦ any delay or claim by the Builder to enforce a right against the Owner; and
◦ any forbearance given to the Owner to perform the Owner's obligations under the Contract.
6. Severability
Any provision of this Deed which is illegal, void or unenforceable will be ineffective to the extent only of
such illegality, voidness or unenforceability and will not invalidate any other provision of this Deed.

Page 19 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

7. When More Than One Guarantor

If the Guarantor consists of more than one person, this guarantee and indemnity is not affected by the
failure of all persons comprising the Guarantor to sign this guarantee and indemnity or this Deed
being unenforceable against any of them.
8. Waiver of Rights
The Guarantor waives all rights as surety inconsistent with any of the terms of this Deed or to the
detriment or disadvantage of the Builder.

Guarantor's Statement
I/we understand the nature, terms and extent of the guarantee and indemnity provided by me/us and further
acknowledge that I/we have obtained legal advice prior to executing this Deed.
Signed as a Deed

SIGNATURE

WITNESS'S NAME AND ADDRESS

SIGNATURE

DATE

Page 20 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

GENERAL CONDITIONS

A. Interpretation

Clause 1. Definitions
NOTE 1.0 • 'All Weather Access' means reasonable access to the Building Site
Throughout the to enable the carrying out of the Building Works including in
Contract whenever a
defined phrase or conditions resulting from Restricted Access.
word is used it is
shown in bold print. • 'Builder' means the person, partnership or company named in the
Particulars of Contract.
• 'Building Period' means the building construction time estimated by
the Builder to carry out the Building Works as stated in Item 1 of
Schedule 1, subject to Clause 34.
• 'Building Works' means the works to be carried out and completed by
the Builder as shown in the Contract Documents and as varied in
accordance with this Contract.
• 'Building Site' means the land upon which the Building Works are to
be carried out.
• 'Building Surveyor' means the person, partnership or company
named in the Particulars of Contract.
• 'Business Day' means a day that is not a Saturday or a Sunday or a
day that is wholly or partly observed as a public holiday throughout
Victoria.
• 'Commencement' means the day on which the Building Works
commence on the Building Site.
• 'Completion' means that the Building Works to be carried out under
the Contract have been completed in accordance with the Plans and
Specifications set out in the Contract.
• 'Contract Documents' means this signed Contract and the
Conditions, signed Specifications, signed Plans and an Engineer's
Design.
• 'Contract Price' means the amount show in Item 2 of Schedule 1.
• 'Days' means calendar days.
• 'Engineer's Design' includes a footing design or other structural
design that has been prepared by a qualified engineer for the
concrete footings, stumps, piers or slab construction, or for a particular
part of the Building Works that require a structural design, drainage
design where appropriate and computations accompanying the
foregoing.
• 'Final Claim' means the Builder's claim setting out the balance of the
Contract Price due for payment by the Owner to the Builder, taking
into account all monies paid by the Owner and all other amounts to be
added to or deducted from the Contract Price under this Contract.
• 'Final Payment' means the payment of the amount of the Final Claim.

Page 21 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

• 'Foundations Data' has the same meaning as set out in Section 30 of

the Domestic Building Contracts Act 1995.
• 'Land' means the land containing the Building Site.
• 'Lending Body' means a person or corporation which has agreed or
agrees to make a loan to the Owner to enable the Owner to pay
monies which become payable to the Builder under this Contract.
• 'Notice of Completion' means a notice given by the Builder
pursuant to Clause 36 informing the Owner that the Building Works
have reached Completion.
• 'Owner' means the person, partnership or company named in the
Particulars of Contract and wherever appearing in this Contract
includes their agents executors and administrators.
• 'Plans' means the drawings showing the layout and design details of
the Building Works with dimensions and elevations, including
Engineer's Design.
• 'Possession' includes occupancy, use or control.
• 'Prime Cost Item' means an item (for example, a fixture or fitting) that
either has not been selected or whose price is not known at the time
which this Contract is entered into and for the cost of supply and
delivery which the Builder has made allowance for in the Contract
Price.
• 'Progress Payment' means a payment that the Builder may claim on
the completion of a construction stage as detailed in Schedule 3.
• 'Provisional Sum Item' means an item of work (including labour and
materials) for which the Builder, after making all reasonable inquiries,
cannot give a definite price at the time that this Contract is entered into
and which the Builder has made allowance for in the Contract Price.
• 'Restricted Access' has the meaning in Clause 26.1.
• 'Site Access' means access for delivery and tradesmen's vehicles
from the roadway to the Building Site on the Land.
• 'Site Drainage' means drains deemed by the Soil Test Report that
are necessary to protect the Building Works from water damage.
• 'Soil Test Report' means an investigation of the Building Site to
seek evidence of filling on the Land, concealed rock and to establish a
depth for the footing excavations.
• 'Specifications' means the Contract document that shows the full
details of the Building Works and includes the details of the materials
to be supplied.
• 'Statutory or Other Authority' means the Local Government, State
or Federal Government, or any Government Agency or registered
building surveyor that has the power to affect the Building Works.
• 'Sub-Contractor' means a person, partnership or company who
contracts with the Builder to carry out part of the Building Works.

Clause 2. Headings, footnotes, etc.

2.0 The headings (but not the explanatory notes) form part of this Contract.

Page 22 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Clause 3. Contract complete in itself

3.0 This Contract is complete in itself and overrides any earlier agreement,
whether made verbally or in writing.

Clause 4. Joint and several obligations

4.0 If there is more than one Owner under this Contract, their obligations are
joint and several.

Clause 5. Assignment and sub-letting

5.0 Either party may assign their rights and duties under this Contract with the
written consent of the other.

Clause 6. Notices
6.0 Unless otherwise stated in this Contract, a notice given under this Contract
must be in writing and in English.
6.1 Notices may be given:
• personally;
• by sending it by prepaid post to the party's address shown in the
Particulars of Contract or the address that is last notified in writing;
• by sending it by facsimile to the party's fax number shown in the
Particulars of Contract or the fax number that is last notified in writing;
or
• by sending it by email to the party's email address shown in the
Particulars of Contract or that is last notified in writing.
6.2 Notice is deemed to be received:
• if given personally, by handing it to the other party;
• if sent by prepaid post, 5 Business Days after posting;
• if sent by facsimile, at the time and on the day shown in the sender's
transmission report;
• if sent by email, at the time of transmission unless the sender's server
or email indicates a malfunction or error in transmission or the
recipient immediately notifies the sender of an incomplete or illegible
transmission.
6.3 If the notice is deemed to be received on a day which is not a Business Day
or after 5pm, it is deemed to be received at 9am on the next Business Day.
6.4 If two or more people comprise a party, notice to one is effective notice to
all.

Page 23 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

B. Main obligations of the parties

Clause 7. Building Act 1993 insurance

NOTE 7.0 Where an insurance policy is required under Division 3 of Part 9 of the
The insurance policy Building Act 1993 in relation to this Contract and it is not issued before this
is all of the terms and
conditions of the Contract is entered into then until such an insurance policy is issued:
insurance policy and
not just the certificate • the Builder is not able to enforce any provision of this Contract;
of insurance.
• the Building Works must not commence; and
• no money (including the deposit) is payable under this Contract.
7.1 The Builder is to ensure that a copy of that insurance policy is given to the
Owner within 7 Days after it is issued.

Clause 8. Finance
8.0 If an amount is inserted in Item 11 of Schedule 1 then this Contract is
conditional upon the Lending Body providing to the Owner written
approval of a loan of at least that amount in order to enable the Owner to
pay to the Builder the monies which become payable under this Contract,
such approval unless otherwise stated in Item 11 of Schedule 1 to be
provided within 14 Days of the date of this Contract. The Owner promises
diligently to pursue such written approval.
8.1 Should such written approval not be obtained within the time provided, this
Contract will be voidable within 7 Days at the option of the Owner to be
exercised by notice in writing to the Builder, whereupon all monies paid by
the Owner to the Builder, will be refunded except for a sum calculated in
accordance with Clause 19.4.
8.2 If required by the Builder, the Owner must deposit that part of the
Contract Price not being supplied by the Lending Body into a separate
bank account in the joint names of the Owner and the Builder with:
• interest received on the money in the account belonging to the
Owner; and
• withdrawals requiring the signatures of both the Owner and the
Builder.

Clause 9. Deposit
9.0 The Owner must pay to the Builder the deposit set out in Item 3 of
Schedule 1 on the later of:
• the signing of this Contract; or
• the issue of an insurance policy in relation to this Contract under
Division 3 of Part 9 of the Building Act 1993.
9.1 The amount of the deposit must not be:
• more than 5%, if the Contract Price is $20,000 or more; or
• more than 10%, if the Contract Price is less than $20,000.

Page 24 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Clause 10. Commencement and Building period

NOTE 10.0 Commencement must occur within 21 Days after the Builder receives:
The Building Period • the essential information from the Owner (refer to Clause 13);
may be extended in
accordance with • all necessary building permits and planning approvals (refer to
Extensions of Time.
Refer to Clause 34. Clause 19); and
• payment of the deposit under Clause 9.
10.1 The Building Period starts on the actual day of Commencement.
10.2 The Builder will do everything that is reasonably possible to ensure the
Building Works will start as soon as practicable.

Clause 11. Statutory warranties

NOTE 11.0 To the extent required by the Domestic Building Contracts Act the Builder
The Building Period warrants that:
may be extended due
to further unforeseen
delays as set out in
Clause 34.
• the Building Works will be carried out in a proper and workmanlike
manner and in accordance with the Plans and Specifications set out
in this Contract;
• all materials to be supplied by the Builder for use in the Building
Works will be good and suitable for the purpose for which they are
used and that, unless otherwise stated in this Contract, those materials
will be new;
• the Building Works will be carried out in accordance with, and will
comply with, all laws and legal requirements including, without limiting
the generality of this warranty, the Building Act 1993 and the
regulations made under that Act;
• the Building Works will be carried out with reasonable care and skill
and will be completed by the end of the Building Period;
• if the Building Works consist of the erection or construction of a
home, or are Building Works intended to renovate, alter, extend,
improve or repair a home to a stage suitable for occupation, the home
will be suitable for occupation at the time the Building Works are
completed; and
• if this Contract states the particular purpose for which the Building
Works are required, or the result which the Owner wishes the
Building Works to achieve, so as to show that the Owner relies on
the Builder's skill and judgement, the Building Works and any
material used in carrying out the Building Works will be reasonably fit
for that purpose or will be of such a nature and quality that they might
reasonably be expected to achieve that result.

Clause 12. Owner must pay the Contract Price

12.0 The Owner must pay the Builder the Contract Price set out in Item 2 of
Schedule 1 and other amounts to be paid by the Owner under this
Contract in accordance with Clause 30 or as otherwise stated in this
Contract. The Owner may be required to pay more if:

Page 25 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

• there are additional costs payable by operation of Clause 12.1;

• additional costs are caused by a deficiency or conflict within the
Contract Documents (refer to Clause 16);
• a survey of the Land is needed to determine the correct boundaries of
the Land (refer to Clause 17);
• additional building permit fees are payable by operation of Clause 18;
• there is a variation to the costs of complying with changed laws (refer
to Clauses 21 and 22);
• there is an additional amount to pay for an agreed variation (refer to
Clauses 23 and 24);
• the Owner is to pay the cost of providing access (refer to Clause 26);
• interest charges apply by operation of Clause 31; or
• there are additional costs associated with Prime Cost Items or
Provisional Sum Items in Schedule 2 (refer to Clause 33).
12.1 Should the following circumstances arise:
• that the authorised person under the Building Act 1993 properly
requires that a variation to the Building Works be made;
• the variation requirement arose as a result of circumstances beyond
the Builder's control;
• the Builder gave a notice pursuant to Clause 23 including a copy of
such requirement; and
• the Owner does not within 5 Business Days of receipt of such notice
advise in writing that such variation requirement is disputed,
the Building Works are varied by operation of this Clause in accordance
with that requirement and the price for the variation will be charged and
paid in accordance with Clause 24.
12.1.1 Subject to Clause 12.1.2, where the requirement relates to costs
associated with excavations and/or footings, the Builder must make no
charge unless the Builder has obtained the Foundations Data before
entering this Contract and the cost could not reasonably have been
ascertained from the Foundations Data. For the purposes of this Clause,
the Builder does not have to commission the preparation of Foundations
Data to the extent that such data exists and it is reasonable for the Builder
to rely on that data.
12.1.2 Notwithstanding Clause 12.1.1, the Builder is entitled to make an extra
charge for an amount not already provided for in this Contract if the need
for the additional amount could not have been reasonably foreseen had the
Builder obtained the Foundations Data.
12.2 The price for additional excavations and footings, if any, including an
amount for the Builder's profit and overheads, being the percentage
stated in Item 10 of Schedule 1 applied to the cost of that work, is payable
with the next Progress Payment.
12.3 If there are additional charges associated with Clause 12.1 which when
added to the Contract Price increases the Contract Price by 15% or
more the Owner may bring this Contract to an end by giving the Builder a
written notice, either personally or by registered post.
12.4 If the Contract is brought to an end by the Owner under Clause 12.3, the
Builder is entitled to a reasonable price for the work carried out under the
Contract to the date the Contract is ended.

Page 26 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Clause 13. Owner must provide essential information

13.0 The Owner must give the Builder written evidence of the following within
30 Days of the date of this Contract to enable Building Works to
commence:
• satisfactory evidence of the Owner's title to the Land;
• full details of any easements, restrictions or covenants which affect the
Land;
• satisfactory evidence of the Owner's capacity to pay the sum of the
Contract Price and where monies are to be borrowed, satisfactory
written evidence that any loan has been approved by the Lending
Body and that the mortgage documents have been signed;
• details of any inspections required by the Lending Body;
• copies of any town planning approval and proof of payment of the
relevant fees, where the Owner is responsible for obtaining the
approval; and
• where there are existing structures on the Land to be removed by the
Owner, evidence that such structures have been demolished and all
debris has been removed.

C. Before work begins

Clause 14. Owner to supply documents

14.0 If the Owner supplies the Specifications, Plans and/or Engineer's
Design the Owner must supply a sufficient number of copies to allow the
Builder to construct the Building Works and to obtain the necessary
approvals.

Clause 15. Copyright

15.0 If the Builder constructs the Building Works in accordance with Plans
which may incorporate designs which are:
• supplied by the Owner;
• prepared under instruction from the Owner; or
• prepared from sketches supplied by the Owner,
then:
• the Owner warrants that the Owner has the right to use the design
and Plans and that no breach of copyright is involved in constructing
the Building Works in accordance with the Plans; and
• the Owner indemnifies the Builder in relation to any claim for breach
of copyright.
15.1 A claim for breach of copyright brought against the Builder is a breach of
this Contract by the Owner.

Page 27 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Clause 16. Interpretation of Contract Documents

16.0 If there is any difference between scaled dimensions and figures on the
Plans, the figures prevail. If there is any inconsistency between these
Contract conditions and related Contract Documents they take priority in
the following order:
• these Contract conditions;
• the Specifications; then
• the Plans.
16.1 If the Builder finds any deficiency in the Plans or any conflict between the
Plans and the Specifications, the Builder must promptly notify the
Owner in writing. The Owner must then advise the Builder in writing how
to resolve the problem or which document to follow. If the Owner does not
do so within 7 Days, the Builder may decide what to do, and must notify
the Owner in writing within 7 Days of the decision or the document that will
be followed.
16.2 If additional costs will be incurred by reason of the operation of Clause 16.1
the Builder must request a variation pursuant to the provisions of
Clause 23.2 and the procedure in relation to such variation as set out in
Clauses 23 and 24 will apply.
16.2.1 Should the Owner's consent required by the Builder pursuant to
Clause 23.4 not be provided by the Owner within 7 Days of the Builder's
notice given pursuant to Clause 23.2, then either party may end this
Contract within 14 Days of the expiration of such 7 Day period by written
notice given to the other.
16.2.2 If this Contract is ended under this Clause then the Builder shall be
entitled to a reasonable amount calculated in the manner set out in
Clause 19.4.
16.3 The Builder is not entitled to claim for extra costs for errors in Plans
and/or Specifications that the Builder has prepared.

Clause 17. Owner must identify the Land

17.0 The Owner must show the Builder the boundaries of the Land and
warrants that they are correct and put up a sign on the Land showing the
Owner's name and the lot or street number.
17.1 If the Builder has a reasonable doubt about whether the boundaries are
correct, the Builder must notify the Owner in writing and the Owner must
obtain a survey within 7 Days.
17.2 If the Owner does not do so within 7 Days, the Builder may, as the
Owner's agent, obtain the survey. The Owner must pay to the Builder
the price of the survey, including an amount for the Builder's profit and
overheads being the percentage as shown in Item 10 of Schedule 1 applied
to the cost of the survey, with the next Progress Payment.

Clause 18. Building permit fees

18.0 Unless shown otherwise in Items 4 and 5 of Schedule 1 the Builder has
included in the Contract Price fees payable for the building permit and
planning approvals.

Page 28 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

18.1 In the case of multiple dwellings where additional fees may be applicable,
such as for head works, open space allowances and planning fees, these
are not included in the Contract Price unless specified in Schedules 1
or 4.
18.2 If a building permit fee increases or decreases after the date of this
Contract the Owner must pay any increase and the Builder must credit
any decrease and the next Progress Payment will be varied accordingly.

Clause 19. Planning approvals and building permits

NOTE 19.0 The Owner is responsible for obtaining and paying for any planning
Some Councils have approval that is required unless stated otherwise in Item 4 of Schedule 1.
Planning Laws and
special requirements The party obtaining such planning approvals must take all reasonable
that may affect the steps to do so within the time period shown in Item 4 of Schedule 1.
building of a new
home within their
municipality. There
may be special
restrictions on the
positioning of the
home on the land
and/or restrictions on
the type and/or
colour of exterior
building materials.

19.1 Subject to the receipt of the planning approval and if the Owner has not
already obtained the necessary building permits, the Builder must apply
for them within 14 Days after receiving evidence of the Owner's title to the
Land and ability to pay under Clause 13.
19.2 If the Builder obtains the building permits, the Builder must give copies of
the permit documents to the Owner, if requested to do so.
19.3 If the necessary planning approval and/or building permits are not obtained
within the time specified in Items 4 or 5 of Schedule 1, then if:
• neither party is at fault, either party may bring this Contract to an end
by giving written notice to the other;
• the Builder is at fault, the Owner may bring this Contract to an end
by giving the Builder written notice; or
• the Owner is at fault, the Builder may bring this Contract to an end
by giving the Owner written notice,
provided that the party who wishes to end this Contract under the
conditions of this Clause must do so within 14 Days of the expiration of the
period set out in Items 4 or 5 of Schedule 1.
19.4 If this Contract is ended under this Clause and the Builder is not at fault,
the Builder is entitled to a reasonable price for the work performed,
including the costs incurred and an amount for the Builder's profit and
overheads being the percentage shown in Item 6 of Schedule 1 applied to
the cost of that work. The price:
• may include an amount for the preparation of Plans and
Specifications, the Engineer's Design and Soil Test Report -
unless these have been allowed for in a separate contract; and
• must not include an amount for work on the Building Site for which
planning or building approval was not obtained.

Page 29 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

19.5 If the Builder is identified in Item 5 of Schedule 1 as the party responsible

for the building permit, then the Builder is responsible for paying for fees
of the Building Surveyor appointed by the Owner and this cost is
included in the Contract Price. The Owner authorises the Builder to
make applications, appeals or referrals under the Building Act 1993 for the
Building Works.
19.6 The Owner must otherwise sign all documents and do all acts as required
by the Builder to obtain all permits, consents and certificates from the
Building Surveyor or any Statutory or other authority that has the power
to affect the Building Works.

Clause 20. Insurance

NOTE 20.0 The Builder:
Re Clause 20.4 • must insure in the names of the Builder, the Owner and the Lending
The Owner should
note that the Owner Body (as stated in the Particulars of Contract), against liability for
will be liable for loss physical loss, destruction or damage to the Building Works and the
caused by the Owner
or someone for whom goods and materials on the Land as described in the Contract
the Owner is
responsible, i.e. any Documents; and
Sub-Contractors,
employees, etc • must indemnify the Owner in respect of and insure against liability for
working on the site personal injury, death, property loss or damage arising out of the
for the Owner to
perform any Building Building Works.
Works which are not
included in the
Building Works. The
Owner should
therefore consider
insuring against this
Public Liability risk.

20.1 The Builder must maintain the insurance from the date the Owner gives
the Builder Possession of the Land under Clause 25 to the earlier of:
• the date that the Owner takes Possession of the Land or any part of
the Land; or
• the date the Builder hands over Possession of the Land.
The Owner must pay the Builder a reasonable amount to cover the pro-
rata cost of the insurance for any period during which the Final Payment is
unreasonably withheld from the date the money is due.
20.2 The Builder must provide the Owner with a current 'Certificate of
Currency' within 7 Days of Commencement of the Building Works. The
Certificate must show the names of the Builder, Owner, Lending Body
and the job address.
20.3 The cover for personal injury, death, property loss or damage arising out of
the Building Works must be for an amount which is not less than
$5 million for any one claim and the Builder must include as parties to be
insured under the policy, any Sub-Contractors who do not provide the
Builder with evidence of adequate and continuing insurance cover.
20.4 The Builder is not responsible for, and does not indemnify the Owner or
the Owner's employees or agents or any person claiming through the
Owner against any loss or liability that arises out of something done or not
done by the Owner or any person for whom the Owner is responsible. The
Owner indemnifies the Builder in relation to such claims.
20.5 The Builder must be registered with WorkCover to protect any person
employed by the Builder in carrying out the Building Works.

Page 30 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

D. During work

Clause 21. Variations to statutory laws

NOTE 21.0 If the Plans and/or the Specifications have to be varied to comply with
Refer to Clause 24 either a change in the law or statutory requirements after this Contract is
for information
relating to Variations entered into the Builder must not give effect to any variation unless the
requested by the following circumstances apply:
Owner or the Builder.
• a building surveyor or other authorised person under the Building Act
1993 requires in a building notice or building order under that Act that
the variation be made;
• the requirement arose as a result of circumstances beyond the
Builder's control;
• the Builder included a copy of the building notice or building order in
the notice required by the Act; and
• the Owner does not advise the Builder in writing within 5 Business
Days of receiving the notice required by the Act that the Owner
wishes to dispute the building notice or building order.
21.1 The Owner and the Builder may then agree to vary the Plans and the
Specifications to make them comply or to avoid the need to comply. The
variation must be in writing and signed by the Owner and the Builder. If
the Builder and the Owner do not agree within 7 Days to vary the Plans
and the Specifications, they are varied in accordance with the Builder's
notice under Clause 21.
21.2 If the variation involves additional cost, the Owner must pay it, plus the
percentage specified in Item 10 of Schedule 1. If the variation involves a
saving, the saving is to be deducted from the Contract Price. In each
case, the adjustment is to be made to the next Progress Payment to the
Builder.
21.3 If the cost of the variation is greater than 15% of the total of the Contract
Price and other amounts to be added to or deducted from the Contract
Price under this Contract;
• the Owner may bring this Contract to an end by giving the Builder a
written notice either personally or by registered post; or
• the Builder may bring this Contract to an end by giving the Owner a
written notice either personally or by registered post if the Owner fails
to give written evidence of ability to pay for the variation within 14 Days
after receiving the Builder's notice.
21.4 If the Contract is brought to an end by either the Builder or the Owner
under this Clause, the Builder is entitled to a reasonable price for work
performed to the date this Contract is ended, including costs incurred and
an amount for the Builder's profit and overheads being the percentage
shown in Item 6 of Schedule 1 applied to that cost.
21.5 Nothing in this Clause allows the Builder to charge the Owner for building
work required as a result of a direction issued under Division 2 of Part 4 of
the Building Act 1993.

Page 31 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Clause 22. Variations to State or Commonwealth tax laws

22.0 The Owner must pay to the Builder a sum equal to any increase in any
tax, duty or charge which takes effect after the date of this Contract and
which causes an increase in the cost to the Builder in complying with the
Contract. Such sum shall be paid by the Owner to the Builder with the
Final Payment.

Clause 23. Requested variations

23.0 Either the Owner or the Builder may ask for the Building Works to be
varied. The request must be in writing, must be signed and must set out the
reason for and details of the variations sought.
23.1 If the Owner requests the variation and the Builder reasonably believes
the variation will not require a variation to any permit and will not cause any
delay and will not add more than 2% to the Contract Price the Builder
may carry out the variation.
23.2 If the Builder requests the variation, the notice given by the Builder must
state the following further particulars:
• what effect the variation will have on the Building Works;
• if the variation will result in any delays, the Builder's estimate of such
delays; and
• the cost of the variation and the effect it will have on the amount
payable by the Owner under this Contract.
23.3 If the Owner requests a variation and if the Builder has not agreed to
carry out the variation under Clause 23.1, the Builder must give the
Owner, within a reasonable time of receiving the notice under Clause 23.0,
a notice:
• setting out the particulars listed in Clause 23.2; or
• stating that the Builder refuses or is unable to carry out the variation
and stating the reasons therefore.
23.4 Subject to Clause 23.1, the Builder must not give effect to any variation
unless the Owner gives the Builder a signed consent to or request for the
variation attached to a copy of the notice referred to in Clauses 23.2 or
23.3.
23.5 If, within 7 Days of the Builder giving the Owner the notice of particulars
under Clause 23.3, the Owner does not give the Builder:
• a signed request to the variation under Clause 23.4; and
• written evidence of the Owner's ability to pay for the variation,
the request by the Owner for the variation is deemed withdrawn.

Clause 24. Effect of variations

24.0 When a variation has been effected under Clauses 12, 23 or 38:
• if the variation increases the amount to be paid by the Owner under
this Contract the amount is added to the next Progress Payment
after the work is done. If it decreases the amount to be paid by the
Owner under this Contract the amount is subtracted from the
Progress Payment for the stage relevant to the variation;

Page 32 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

• the Contract Documents are read as if so varied; and

• the Completion Date or the number of Days required to finish the
work are read as that date or number of Days, as adjusted to take
account of the variation.

Clause 25. Possession

25.0 The Owner must, within 7 Days of receiving a request from the Builder,
give the Builder exclusive Possession of the Land to carry out the
Building Works. The Builder's right to Possession of the Land is under
a contractual licence only. The Builder has the Owner's authority to allow
or refuse anyone access, and may remove unauthorised people from the
Land.
25.1 The Owner or an authorised officer of the Lending Body is entitled, after
giving the Builder reasonable prior notice, to go on the Land to inspect
the Building Works at reasonable times provided that such inspection
does not delay or interfere with the progress of the Building Works.

Clause 26. All Weather Access

26.0 The Owner acknowledges that the cost of All Weather Access is not
included in the Contract Price.
26.1 If due to conditions resulting from inclement weather access to the
Building Site is restricted ('Restricted Access'):
• so as to impede the carriage of machinery and/or materials to and
from the Building Site or the Building Works being carried out in a
safe manner; and
• the carrying out of the Building Works are, or will be delayed;
the Builder may request a variation in accordance with Clause 23.2 to
carry out additional Building Works reasonably required to include a
means of All Weather Access to the Building Site.

Clause 27. Owner must not direct Builder's workers

27.0 The Owner, or an agent acting on behalf of the Owner or an officer of the
Lending Body, must not make inquiry of or give directions to the Builder's
workers or Sub-Contractors on the Building Site or elsewhere.

Clause 28. Owner must arrange Lending Body inspections

28.0 The Owner must notify the Builder in writing if and when the Lending
Body will want to inspect the Building Works before making a Progress
Payment. The Builder must do everything reasonable to assist the
Lending Body to inspect the Building Works. This includes sending a
notice that a stage has been completed to the Lending Body at the same
time as one is sent to the Owner.

Page 33 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Clause 29. Builder to claim Progress Payments

29.0 The Builder must give the Owner a written claim for each Progress
Payment when each stage has been completed, as set out in Schedule 3.
The claim must set out each of the following:
• the amount paid or to be paid for the stage or stages completed to
date;
• the amount paid or to be paid for, and details of, any variations made
and other amounts paid or to be paid by the Owner under this
Contract;
• the sum of those amounts;
• payments that have already been made by the Owner; and
• the total claimed, taking into account the payments already made.

Clause 30. Owner must make Progress Payment

30.0 The Owner must pay the amount of a Progress Payment set out in
Schedule 3 within the number of Days set out in Item 7 of Schedule 1 after
both:
• the stage has been completed; and
• the Owner has received a written claim for the Progress Payment.
30.1 If the Owner is getting finance from a Lending Body, the Owner must
give the Lending Body an authority, while this Contract lasts, to make
payment direct to the Builder of any amount the Owner agrees has
become due under this Contract. The Owner must notify the Lending
Body when each stage is completed and the payment is due.

Clause 31. Builder's right to agreed damages

NOTE 31.0 If the Owner does not pay the amount of a Progress Payment, or the
Section 27 of the Act Final Payment, within 7 Days after it becomes due, the Builder is entitled
provides that if the
Owner fails to pay to interest on the unpaid amount, at the rate set out in Item 8 of Schedule
the Builder any 1, from the date the payment becomes due until the date the payment is
amount due under
the Contract a made.
Domestic Building
Dispute exists
between the parties.

Clause 32. Unfixed materials on Site

32.0 Any unfixed goods or materials on the Building Site (apart from those
supplied and paid for by the Owner and clearly marked accordingly) are
the property of the Builder.

Page 34 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Clause 33. Prime Cost Items and Provisional Sum Items

NOTE 33.0 Where the Owner is to select any item for a Prime Cost Item or a
Prime Cost Items - Provisional Sum Item, the Owner must make the selection within 7 Days
Certain fixtures and
fittings may need to of receiving a written request to make the selection from the Builder.
be selected after the
signing of the
Contract. These items
may include the stove
or special kitchen
and bathroom
products. The Builder
will allow in the
Contract Price an
amount which should
cover the expected
cost, subject to the
Owner's final
selection.
Provisional Sum Items
- Are items of work
(labour and materials)
included in the
Contract Price for
which the Builder
cannot give a
definite price, for
example, site
excavation, rock
removal and concrete
footings.

33.1 An allowance for a Prime Cost Item does not include amounts for
installation, Builder's profit and overheads and cartage. These are
included in the Contract Price.
33.2 An allowance for a Provisional Sum Item does not include an amount for
the Builder's profit and overheads. The amount for the Builder's profit
and overheads is included in the Contract Price.
33.3 If a Prime Cost Item selected by the Owner is unavailable, then the
Owner must specify an alternative item within 7 Days of the Builder's
request to do so, and if the Owner fails to comply the Builder shall be
entitled to select an alternative as near as practical in quality to the original
item selected by the Owner.
33.4 In relation to each Prime Cost Item and Provisional Sum Item, if the
actual price of supplying the item or providing the work is:
• less than the allowance, the difference is deducted from the Contract
Price; or
• more than the allowance, the total of the difference plus the relevant
margin or excess stated in Schedule 2 applied to that difference is
added to the Contract Price and is payable with the Progress
Payment in which the amount for that item or work is included.
33.5 Where there are no further Progress Payments to be made, the Builder
must calculate the amount and notify the Owner as soon as possible. The
amount of the difference must be paid or allowed with the Final Payment
as the case may be.
33.6 In calculating the amount spent, the Builder must pass on normal trade
discounts to the Owner. This does not include cash or special discounts
for bulk purchasing or personal reasons.
33.7 The Builder must give the Owner a copy of any invoice, receipt or other
document that shows the cost to the Builder of any Prime Cost Item or
labour and materials that relate to a Provisional Sum Item, as soon as
practicable after receiving same.

Page 35 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

33.8 The Builder warrants that any allowance for a Provisional Sum Item
included by the Builder in the Contract has been calculated with
reasonable care and skill taking account of all the information reasonably
available at the date the Contract is made, including the nature and
location of the Building Site.

Clause 34. Builder's right to extensions of time

34.0 The date for Commencement is put back or the Building Period is
extended if the carrying out of the Building Works is delayed due to:
• a variation or a request for a variation by the Owner in accordance
with Clauses 16, 21, 23 and 24;
• a suspension of work in accordance with Clause 35;
• inclement weather or conditions resulting from inclement weather in
excess of the Days nominated in Schedule 1;
• an Owner's refusal to agree to a variation requested by the Builder
under Clause 26.1;
• disputes with neighbouring owners or residents, or proceedings
brought or threatened by them, that are not the Builder's fault;
• civil commotion or industrial action affecting the work of tradespeople
or the work of a manufacturer or supplier of materials;
• anything done or not done by the Owner or by an agent, contractor or
employee of the Owner;
• a delay in getting any approval, provided that it is not the Builder's
fault. Refer to clause 19; or
• any other cause that is beyond the Builder's direct control.
34.1 The Builder is to give the Owner a written notice informing the Owner of
the extension of time. The written notice must state that cause and the
extent of the delay.
34.2 To dispute the extension of time the Owner must give the Builder a written
notice, including detailed reasons why the Owner disputes the claim, within
7 Days of receiving the Builder's notice.
NOTE 34.3 If there is an extension of time due to anything done or not done by the
The amount to be Owner or by an agent, contractor or employee of the Owner, the Builder
stated in Item 12 of
Schedule 1 is is, in addition to any other rights or remedies, entitled to delay damages
negotiable and is to
reflect the damage worked out by reference to the period of time that the Building Period is
the Builder will suffer extended and the greater of $250 per week or that amount set out in Item
as a result of a delay.
The minimum amount 12 of Schedule 1. Delay damages will accrue on a daily basis.
that the Builder is
entitled to is $250
per week.

34.4 The Owner must pay any delay damages with the next Progress
Payment.

Clause 35. Suspension of work

35.0 The Builder may suspend the Building Works if the Owner:
• does not make a Progress Payment that is due within 7 Days after it
becomes due; or
• is in breach of this Contract.

Page 36 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

35.1 If the Builder suspends the Building Works, the Builder must
immediately give notice in writing by registered post to the Owner. The
Owner must remedy the breach within 7 Days after receiving the notice.
The Builder must recommence the Building Works within 21 Days after
the Owner remedies the breach and gives notice of this to the Builder.
35.2 The date on which the Building Works are to be completed is changed
and extended to cover the period of suspension.

E. Completion of the Works

Clause 36. Final inspection

36.0 When the Builder considers that the Building Works have reached
Completion the Builder is to give to the Owner:
• a Notice of Completion; and
• the Final Claim.
36.1 Notwithstanding any other provision of this Contract, the Builder must not
demand Final Payment until after the Builder has given to the Owner
either:
• a copy of the occupancy permit under the Building Act 1993, if the
building permit for the Building Works requires the issue of an
occupancy permit; or
• in any other case, a copy of the certificate of final inspection.
36.2 The Builder and the Owner must meet on the Building Site within 7 Days
of the Owner receiving the Notice of Completion and Final Claim to
carry out an inspection in accordance with Clause 37.
36.3 If the Owner does not meet with the Builder to inspect the Building
Works as required by Clause 36.2, the Owner must pay the amount of the
Final Claim within a further period of 7 Days.
36.4 If within 7 Days after service of the Notice of Completion the Owner fails
to attend an inspection of the Building Works, the Final Payment is due
and payable at the expiration of a further period of 7 Days.

Clause 37. List of defects and Final Payment

37.0 When the Owner and the Builder meet on the Building Site to inspect
the Building Works, the Owner is to give the Builder a written list of all
known defects and incomplete work. The Builder and the Owner are to
sign the list and each must keep a copy.
37.1 If the Owner does not give the Builder a written list or does not list any
known defects or incomplete work, the Owner must pay the Final Claim
within a further period of 7 Days.
37.2 If the Owner gives the Builder a list of known defects and incomplete work
the Builder must carry out the work required to rectify any defects or to do
any incomplete part of the Building Works for the Building Works to
reach Completion.
37.3 The Builder is to give the Owner a written notice when the work under
Clause 37.2 has been done.

Page 37 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

37.4 The Owner must pay the Final Claim within a further period of 7 Days
after the Owner receives the Builder's notice under Clause 37.3.
37.5 The fact that the Owner pays the Final Claim is not evidence that there
are no defects or incomplete work nor a waiver of any rights under a
statutory warranty.
37.6 The fact that the Builder signs the list is not an admission that the defects
exist or there is incomplete Building Works.
37.7 'Defect' does not include a defect arising from the fact that something has
to be supplied or done by the Owner.

Clause 38. Handover and Final Payment

38.0 When the Owner pays the Final Claim the Builder must hand over
Possession of the Land to the Owner together with all keys, certificates
and warranties in the Builder's possession.
38.1 If the Owner takes Possession of the Land or any part of the Land
before paying the Final Claim and without the Builder's prior written
consent, the Owner commits a substantial breach of this Contract entitling
the Builder to elect to either:
• treat the Owner's action as a repudiation of this Contract and accept
that repudiation;
• give the Owner a notice to remedy breach of contract under
Clause 42; or
• accept the Owner's actions as a variation of the Building Works to
omit that part of the Building Works not carried out and completed as
at the date the Owner takes Possession.
38.2 If the Owner breaches (including repudiates) this Contract, nothing in this
Clause 38 prejudices the right of the Builder to recover damages or
exercise any other right or remedy.
38.3 If the Builder accepts the variation of the Building Works under the third
paragraph of Clause 38.1, the Builder is to give the Owner written notice
to that effect and the Builder may give a Notice of Completion and a
Final Claim under Clause 36.

Clause 39. Defects within the 3 month period

39.0 The Builder must fix any additional defects in the Building Works that the
Owner notifies in writing within 3 months from the earlier of:
• the date that the Owner takes Possession of the Land or any part of
the Land; or
• the date the Builder hands over Possession of the Land.
39.1 Defects that in the reasonable opinion of the Builder affect the safety or
security of the Building Works or may lead to it being damaged must be
fixed by the Builder as soon as practicable after notification by the Owner.
39.2 Other defects must be listed by the Owner and given to the Builder at the
end of the 3 month period. The Builder must fix those defects within
21 Days after the expiration of the 3 month period or as soon as
reasonably practicable.

Page 38 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

39.3 The Builder must fix defects without cost to the Owner. The Builder must
do so in normal working hours or at any time agreed between the Builder
and the Owner. The Owner must provide reasonable access to the
Builder.

Clause 40. Owner's claim for agreed damages

NOTES 40.0 If the Building Works have not reached Completion by the end of the
Re Clause 40 Building Period the Owner is entitled to agreed damages in the sum set
The amount used to out in Item 9 of Schedule 1 for each week after the end of the Building
calculate agreed
damages takes into Period to and including the earlier of:
account the
expenses that will be • the date the Building Works reach Completion;
incurred by the
Owner if the Building • the date this Contract is ended; and
Works are not
completed on time • the date the Owner takes Possession of the Land or any part of the
(for example, rent for
alternative housing Land.
or interest payments).
The amount to be
stated in Item 9 of
Schedule 1 is
negotiable and
should accurately
reflect the Owner's
estimated expenses.
If no amount is stated
in Item 9 of Schedule
1, the amount of
$250 per week is
allowed to the
Owner.
The Building Period
shown in Item 1 of
Schedule 1 may be
extended due to
unforeseen delays.
Refer to Clause 34.

40.1 The Owner may deduct the amount of any such damages from the Final
Payment.

Clause 41. Ending this Contract under bankruptcy or liquidation

41.0 Either the Owner or the Builder may bring this Contract to an end by
giving written notice to the other by registered post, if the other becomes
bankrupt or assigns his or her estate for the benefit of his or her creditors,
or makes a composition or arrangement with them, or, being a corporation
goes into liquidation (except for the purposes of reconstruction), or has a
receiver, manager, mortgagee in possession, administrator or provisional
liquidator appointed.

Clause 42. Builder's right to end this Contract

42.0 If the Owner breaches (including repudiates) this Contract, nothing in this
Clause prejudices the right of the Builder to recover damages or exercise
any other right or remedy.
42.1 The Owner is in substantial breach of this Contract if the Owner:
• does not give the Builder any of the essential information required by
Clause 13;

Page 39 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

• does not pay a Progress Payment as required by Clause 30;

• takes Possession of all or any part of the Land before paying the
Final Claim and without the Builder's prior written consent; or
• is otherwise in substantial breach of this Contract.
42.2 If the Owner is in substantial breach of this Contract the Builder may give
the Owner a written notice to remedy the breach:
• specifying the substantial breach;
• requiring the substantial breach to be remedied within 10 Days after
the notice is received by the Owner; and
• stating that if the substantial breach is not remedied as required, the
Builder intends to end the Contract.
42.3 If the Owner does not remedy the substantial breach stated in the notice to
remedy the breach within 10 Days of receiving that notice, the Builder may
end this Contract by giving a further written notice to that effect.
42.4 The Builder is not entitled to end this Contract under this Clause when the
Builder is in substantial breach of this Contract.
42.5 If the Builder brings this Contract to an end under this Clause, the Builder
is entitled to the Contract Price and other amounts payable by the Owner
under this Contract, less the cost to the Builder of performing the
remainder of the Building Works. The Builder is also entitled to
reasonable compensation for any other loss caused by the Owner's
breach.
42.6 Any sum payable by the Owner to the Builder pursuant to the operation of
this Clause is due and payable upon the Builder bringing the Contract to
an end.

Clause 43. Owner's right to end this Contract

43.0 If the Builder breaches (including repudiates) this Contract, nothing in this
Clause prejudices the right of the Owner to recover damages or exercise
any other right or remedy.
43.1 The Builder is in substantial breach of this Contract if the Builder:
• suspends the carrying out of the Building Works, otherwise than in
accordance with Clause 35;
• has the Builder's licence cancelled or suspended; or
• is otherwise in substantial breach of this Contract.
43.2 If the Builder is in substantial breach of this Contract the Owner may give
the Builder a written notice to remedy the breach:
• specifying the substantial breach;
• requiring the substantial breach to be remedied within 10 Days after
the notice is received by the Builder; and
• stating that if the substantial breach is not remedied as required, the
Owner intends to end this Contract.
43.3 If the Builder does not remedy the substantial breach stated in the notice
to remedy the breach within 10 Days of receiving that notice, the Owner
may end this Contract by giving a further written notice to that effect.
43.4 The Owner is not entitled to end this Contract under this Clause when the
Owner is in substantial breach of this Contract.

Page 40 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Clause 44. Owner may get another Builder to finish work

44.0 If the Owner brings this Contract to an end under Clause 43, then the
Owner's obligations to make further payment to the Builder is suspended
for a reasonable time to enable the Owner to find out the reasonable cost
of completing the Building Works and fixing any defects.
44.1 The Owner is entitled to deduct that reasonable cost calculated under
Clause 44.0 from the total of the unpaid balance of the Contract Price and
other amounts payable by the Owner under this Contract if this Contract
had not been terminated and if the deduction produces:
• a negative balance - the Builder must pay the difference within
7 Days of demand; and
• a positive balance - the Owner must immediately pay the difference to
the Builder.

Clause 45. Subcontracting

45.0 The Builder may subcontract any part of the Building Works but such
subcontracting does not relieve the Builder from the Builder's obligations
under this Contract.

Clause 46. No waiver

46.0 Except as provided at law or in equity or elsewhere in this Contract, none of
the provisions of this Contract may be varied, waived, discharged or
released, except with the prior written consent of the parties.

Clause 47. Severance

47.0 Any provision in this Contract which is illegal, void or unenforceable will be
ineffective to the extent only of such illegality, voidness or unenforceability
and will not invalidate any other provisions of this contract.

Clause 48. Excluded items

48.0 The Owner and Builder agree that the items set out in Schedule 5 are
excluded from the Contract.
48.1 The Owner must ensure that any person engaged by them to complete
any building work excluded from the Contract:
• holds an appropriate licence or registration to carry out the works;
• obtains domestic building insurance when required under Division 3 of
Part 9 of the Building Act 1993; and
• uses a "major domestic building contract" when required by the
Domestic Building Contract Act 1995.

Page 41 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

F. Disputes, conciliation and tribunal

If you have a dispute you should first discuss the matter with the other party. Serious disputes can often
be avoided by good communication. It is suggested that in the event of a dispute the parties meet as
soon as possible and try to resolve the matter through discussions.

Clause 49. Disputes

49.0 If either the Owner or the Builder refers a domestic building work dispute
to the chief dispute resolution officer under Part 4 of the Domestic Building
Contracts Act 1995 they must within 5 Days give a copy of the referral to
the other party.

Page 42 of 42
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

Domestic Building Consumer Guide

Mandatory contract information statement for consumers
Your builder must give you a copy of this guide before you sign a major domestic building contract. A major
domestic building contract is required for most building projects to build, renovate or extend a home, such as a
house or unit, where the cost of the work is over $10,000.
Reading this guide will help you to know your rights and responsibilities and understand the roles and
responsibilities of your builder and building surveyor.
Learn more about the topics in this guide, and domestic building contracts and work generally, at
consumer.vic.gov.au/buildingguide.

Before your building project starts Make sure you have enough time to thoroughly read
the contract. You should also consider obtaining
You will usually need to appoint building practitioners independent legal advice before you sign the
when you build, renovate or extend a house or unit, contract, even though this means you no longer have
or do other building work. Other work includes work the five-day cooling-off period to change your mind.
such as landscaping, fencing or building a swimming
pool, driveway or a garage. You may need a builder If you are asked to sign a pre-construction contract
to complete the building work, and if you need a (for example, a contract for design or specification
building permit you will need a building surveyor. work or obtaining permits) that is for more than
$10,000, it will be a major domestic building contract.
The Victorian Building Authority (VBA) registers
building practitioners. If you are concerned about the Your contract will also include a checklist, which sets
conduct of a building practitioner you should contact out the matters you must consider before signing the
the VBA. contract. You must complete and sign the contract
checklist.
You can check the registration and disciplinary
history of a building practitioner via the links at You can make a variation to a contract after it has
consumer.vic.gov.au/buildingguide. been signed by using a variation notice (for example,
to change the plans and specifications). You and
Your builder must also take out Domestic Building your builder must agree in writing to the changes and
Insurance (DBI) for your project, if the building work put the details, including the new price and
costs more than $16,000. This covers defective or completion date, in the contract before the work is
incomplete work for up to six years if your builder carried out.
dies, disappears or becomes insolvent. You can also
claim on DBI with the Victorian Managed Insurance Find more information about the contract, the
Authority if your builder fails to comply with a final checklist and contract variations via
order from the Victorian Civil and Administrative consumer.vic.gov.au/buildingguide.
Tribunal or a court.
Appointing a building surveyor
Check when you may make a claim via the links at
consumer.vic.gov.au/buildingguide. Some building projects require a building permit. A
building permit is written approval from a building
Appointing your builder surveyor that your plans and specifications comply
with the building regulations. It allows your builder to
You appoint your builder by signing a major domestic start your building project.
building contract.
If your building work requires a building permit, you
Your contract must be in writing and include details must engage a building surveyor before you apply for
such as: the permit. There are penalties for you and your
 the contract price builder if a building permit is not obtained.
 the deposit and progress payments required by
You can only engage one building surveyor, but you
law for completed stages of work
may choose either a private building surveyor or a
 a description of the building work to be carried out municipal building surveyor. Your builder may
 the plans and specifications, and recommend a building surveyor, but cannot appoint a
 advice on the five-day cooling-off period. private building surveyor for you.
The contract price should be a fixed amount. Cost- You can choose a building surveyor via the links at
plus contracts, for example where your builder consumer.vic.gov.au/buildingguide.
charges you by the hour, are only allowed for
projects over $1 million, or for renovation projects in If you want to engage a municipal building surveyor,
limited circumstances. contact your local council.
(1 August 2017)

consumer.vic.gov.au/buildingguide Page 1 of 2
This guide must not be taken as legal advice.
DocuSign Envelope ID: 581FCECD-960B-497F-8A42-883C9BFB6473

During your building project supply as soon as possible (for example, materials
such as tiles, or a service such as a tiler to work
Role of your builder on the flooring)
 put the details and costs of any changes in writing
Your builder is responsible for completing your – you and your builder must sign off on the
building project to the standard required by the changes before the builder starts the work, and
building regulations and your plans and  only make stage payments when the building work
specifications. The builder may undertake the work for each stage is complete – do not make
or engage and manage tradespeople to do the work. payments in advance.
Your builder must also provide you with a copy of the Check everything in your contract has been delivered
DBI policy and a certificate of insurance for your and is in working order before you make the final
building project, before you pay your deposit. If you payment.
are concerned about the validity of the certificate,
you should check with the insurer. Find details at consumer.vic.gov.au/buildingguide.

Role of the building surveyor Tips and traps

A building surveyor is responsible for checking that Beware of:
your building project meets the minimum standards  an extremely low quote compared to other
of the building regulations. They will independently: builders – this may indicate a risk that the quality
 assess your plans and issue the building permit of the job may be compromised, that the builder
 require protection work to be undertaken so your may not fully understand what is required or may
building work does not damage your neighbour’s not be properly registered or insured
property  sales pitches that put pressure on you to sign the
 conduct the mandatory building inspections contract quickly to avoid a price increase, and
personally or have a building inspector conduct  a builder who recommends that you get an owner
the inspections at the mandatory notification builder permit while they organise all the building
stages of your building project, and work.
 issue the occupancy permit or certificate of final
inspection on completion of the building work. If things go wrong
Your building surveyor may issue directions and Statutory warranties and guarantees
orders to the builder to fix building work or to stop
work. They can also give you building notices and The workmanship and quality of your building project
orders about the building work, if necessary. is protected by specific statutory building warranties
and general consumer guarantees.
The mandatory inspection stages for a house are:
 completion of excavations before placing the Statutory building warranties make sure that your
footings builder uses good workmanship and delivers
everything in your contract. You can take legal action
 before pouring the concrete footings or slab
for a breach of the statutory building warranties at
 completion of the framework, and
any time, up to 10 years after the date the occupancy
 completion of all of the building work. permit or certificate of final inspection was issued.
You can ask your building surveyor to carry out You are also protected by the Australian Consumer
additional inspections, for example, pre-plaster Law (ACL). The ACL provides statutory guarantees
inspections and wet area inspections. Your building that goods and services supplied in trade or
surveyor may charge more for additional inspections. commerce, such as building work, meet certain
Find more information about building surveyors at standards. For example, building work must be
consumer.vic.gov.au/buildingguide. carried out with due care and skill, be fit for purpose
and be delivered in a reasonable time.
Your role
Disputes
You are responsible for checking the progress of
your building project, talking to your builder about Many disputes can be avoided when there is good
any issues or concerns you may have and paying communication between you and your builder. If a
your builder for completed work. You have the right dispute does arise, you should first try to sort it out
to reasonable access to your building site at any time with your builder.
during construction, to check on the progress. If you cannot resolve the dispute, contact the
Make sure you: Victorian government’s free and independent
 choose a building surveyor, if required service, Domestic Building Dispute Resolution
 provide the builder with the items you agreed to Victoria. Find details and lodge a dispute, via the
links at consumer.vic.gov.au/buildingguide.
(1 August 2017)

consumer.vic.gov.au/buildingguide Page 2 of 2

This guide must not be taken as legal advice.