Is this right? Paying 50% Deposit before installation.

[seriph1]

Hi Tezza and welcome to the forum! Please point us in the right direction as to where we can access the same info as yourself..... it is an important consideration for me as I intend to ask for far more than 10 or 20% deposits from clients.

have fun!!!!!

[Tezza]

Hi there Steve,
Thanks for the welcoming

Okay, you asked for the information....

http://www.buildingcommission.com.au...sp?intSiteID=1

then look in the Building Act 1993, Domestic Building Contracts Act 1995. And check out the other ones which may interest you
~~~~~~~~~~~~~~
http://www.dms.dpc.vic.gov.au/ search for the relevant acts here, such as the Building Act 1993, Consumer Affairs Act 1972

When you open these in PDF do a word search. A note, where at the end of a rule it says "10 points" or "50 points" etc, these are actually penalty points and each point is worth $1K, these are penalised to the person that has committed the offence.
To give you an example:
http://www.buildingcommission.com.au...tracts_Act.pdf

In the above Act, Division 2 section 11 it reads:

"Division 2—Restrictions Applying to the Nature and
Contents of Contracts
11. Limit on amount of deposit
(1) A builder must not demand or receive a deposit
under a domestic building contract of more than—
(a) 5% of any contract price that is $20 000 or
more;
(b) 10% of any contract price that is less than
$20 000—
before starting any work under the contract.
Penalty: 100 penalty units.

(3) If a builder does not comply with sub-section (1),
the building owner may avoid the contract at any
time before it is completed. "

Thats 100 points!!!

Don't be scared LOL be afraid

Read the words carefully and read INTO them. It says "before" starting any work. Once you've started, ask for as much as you like, but it has to be on a contract with a schedule of payments.

Starting means, by having proof that you have started ie an invoice with the date from your materials supplier. Make sense?????

I can give you more detailed information but they amended the Building Act in Oct 2006 and I simply don't have the time to read the whole thing again.

Hope this helps

T