Home Building Contracts Act 1991 (WA)

Western Australia Home Building Contracts Act 1991 Western Australia Home Building Contracts Act 1991 Contents Part 1 — Preliminary 1. Short title 2 2. Commencement 2 3. Terms used 2 Part 2 — Home building work contracts 4. Contracts to be in writing; prescribed explanatory notice to be given 6 5. Owner to be given copy of contract 6 6. Receipt of documents by owner, proof of 7 7. Variation of contract to be in writing and given to owner 7 8. Exceptions to s. 7 and related provisions 8 9. Building permit etc., implied conditions and terms as to 9 10. Deposits and progress payments, limits on terms as to 11 11. Defects, implied condition as to liability for 12 12. Understatement of prime cost items etc. by builder, offence 13 13. Rise‑and‑fall clause prohibited 13 14. Cost plus contracts, requirements as to 15 15. Unconscionable etc. conduct by builder as to contract etc. 15 15A. Misleading or deceptive conduct by builder or owner as to contract 17 Part 3 — Remedies 17. Breach of contract or Part 2, or entitlement to compensation, procedure in case of 18 19. How contract terminated 18 20. Adjustment of rights in certain cases 19 Part 3A — Home indemnity insurance and corresponding cover Division 1 — Introduction 25A. Terms used 20 Division 2 — Builders 25B. Application of this Division 24 25C. Builder doing residential building work without insurance or corresponding cover, offence 25 25D. Insurance policy for this Division, terms of 26 25DA. Corresponding cover by an approved fund for builders 29 Division 3 — Owner‑builders 25E. Application of this Division 30 25F. Sale by owner‑builder, restrictions on 30 25FA. Sale by certain owner-builders, further restrictions on 31 25G. Insurance policy for this Division, terms of 32 25GA. Corresponding cover by an approved fund for owner‑builders 33 Division 3A — Approved funds 25GB. Approval of fund by Minister 34 25GC. Certain changes to approved fund require Minister's consent 35 25GD. Approval of fund, revoking 35 Division 4 — Review 25H. Review of this Part by Minister 35 Division 5 — Provisions about non‑application of sections 25C(1) and (2) and 25F(1) 25I. Periods for s. 25C(3) and 25F(2), Minister may specify 36 25J. Contracts with builders, builders to give prescribed notice to other party 36 25K. Sale contract with owner-builder, owner-builder to give prescribed notice to other party 38 25L. Subsequent purchaser to be given notice given under s. 25J in some cases 38 Part 4 — General 26. Inspection by owner etc. of building work, prevention of etc. 39 27. Breach of Act, effect of on contract 39 28. Contracting out prohibited 40 29. Other laws not affected 40 30. Liability of officers for offence by body corporate 40 31. Prosecutions 41 31B. Infringement notices 41 32. Regulations 43 33. Retrospectivity of Act 44 34. Review of Act 44 Schedule 1 — Consequences of non‑fulfilment of conditions 1. Condition in s. 9(1), non-fulfilment of by builder 46 2. Condition in s. 9(1), non-fulfilment of by owner 46 3. Condition in s. 9(1), non-fulfilment of by builder and owner 46 4. Rights of builder and owner if cl. 2 or 3 or s. 13(4)(c) applies 46 5. Price increase, review of 47 Notes Compilation table 48 Other notes 50 Defined terms Western Australia Home Building Contracts Act 1991 An Act for the regulation of contracts between consumers and builders for the performance of certain home building work, to make provision for home indemnity insurance and funds providing corresponding cover, and for connected purposes. [Long title amended: No. 72 of 1996 s. 4; No. 37 of 2002 s. 4; No. 59 of 2004 s. 141.] Part 1 — Preliminary 1. Short title This Act may be cited as the Home Building Contracts Act 1991. 2. Commencement The provisions of this Act shall come into operation on such day as is, or days as are respectively, fixed by proclamation. 3. Terms used (1) In this Act unless the contrary intention appears — associated work includes site works, swimming pools, spas, pergolas, carports, garages, sheds, fencing, retaining walls, paving, driveways, landscaping and other like works; builder means a person who carries on, or 2 or more persons who together carry on, a business which consists of or includes the performing of home building work for others; Builders' Registration Board means the Builders' Registration Board constituted under the repealed Act; Building Commissioner means the officer referred to in the Building Services (Complaint Resolution and Administration) Act 2011 section 85; building licence means building licence issued under the Local Government (Miscellaneous Provisions) Act 1960 section 374 before that provision was deleted by the Building Act 2011 section 153(2); building permit means building permit as defined in the Building Act 2011 section 3; construct in relation to a dwelling means perform any work commencing with the preparation of the site and ending with the completion of the dwelling (including any associated work) and includes — (a) painting where that is part of the work included in a contract; and (b) the provision of lighting, heating, water supply, drainage, sewerage, gas and other like services; contract means a home building work contract; cost plus contract means a contract under which a builder is entitled to recover an amount excluding prime cost items and provisional sums that is not determined at the time when the contract is entered into, being an amount that includes the actual cost to be incurred in — (a) acquiring materials; and (b) performing work, specified in the contract, together with an additional amount that comprises either — (c) a sum calculated as a percentage of that cost; or (d) a specified sum, or both; date of the contract or date of the variation means the day on which the contract or variation was signed by the last party to sign it; dwelling means a building occupied or intended for occupation solely or mainly as a place of residence; home building work means the whole or part of the work of — (a) constructing or re‑constructing a dwelling including an existing dwelling and/or strata/community title dwelling; or (b) placing a dwelling on land; or (c) altering, improving or repairing a dwelling, including a strata/community title dwelling; or (d) constructing or carrying out any associated work in connection with — (i) any work referred to in paragraph (a) or (b); or (ii) an existing dwelling, including a strata/community title dwelling; home building work contract means a contract between a builder and an owner for the performance by the builder of home building work, but does not include — (a) a cost plus contract; (b) a contract for the performance of home building work — (i) for a builder who is in turn obliged to perform the work under another contract; or (ii) if the amount stated in the contract as being payable under the contract for the work is $6 000, or such other amount as is prescribed, or less; or (iii) if the amount stated in the contract as being payable under the contract for the work is $200 000, or such other amount as is prescribed, or more; owner in relation to a contract means the person for whom or which home building work is to be performed under the contract; perform in relation to home building work includes — (a) causing the work to be performed; and (b) organizing or arranging for the performance of the work; prescribed means prescribed by regulations; repealed Act means the Builders' Registration Act 1939; strata/community title dwelling means a building or part of a building, occupied or intended for occupation solely or mainly as a place of residence, that is erected on a lot within the meaning of the Community Titles Act 2018 or the Strata Titles Act 1985; working days means Monday to Friday but excluding in respect of home building work to be carried out in any area a day that is a public holiday in that area or throughout the State. (2) It is immaterial, for the purposes of the definition of home building work contract, that a contract between a builder and an owner for the performance of home building work also includes work that is not home building work. [Section 3 amended: No. 58 of 1995 s. 97; No. 76 of 2000 s. 44; No. 37 of 2002 s. 5; No. 16 of 2011 s. 113; No. 19 of 2011 s. 148; No. 32 of 2018 s. 214.] Part 2 — Home building work contracts 4. Contracts to be in writing; prescribed explanatory notice to be given (1) A contract — (a) must be in writing — (i) setting out all of the terms, conditions and provisions of the contract; and (ii) showing the date of the contract; and (b) must be signed by the builder and the owner or their respective agents. (2) A notice containing an explanation of the relevant provisions of this Act is to be prescribed. (3) The owner must be given a notice referred to in subsection (2) before the owner signs a contract. (4) A builder who is a party to a contract must ensure that the requirements of subsections (1) and (3) are complied with in respect of that contract. Penalty: $2 000. (5) If any requirement of subsection (1) is not complied with by the builder the contract may be terminated by the owner in accordance with section 19. 5. Owner to be given copy of contract (1) The owner must be given a copy of the signed contract — (a) as soon as is reasonably practicable after a contract has been signed by both parties; and (b) before the home building work is commenced. (2) A builder who is a party to a contract must ensure that the requirements of subsection (1) are complied with in respect of that contract. Penalty: $500. (3) If — (a) subsection (1) is not complied with by a builder in respect of a signed contract; and (b) the owner in writing requests the builder to give to the owner a copy of the contract, the builder must comply with that request within 10 working days of receiving it. Penalty: $10 000. [Section 5 amended: No. 76 of 2000 s. 45.] 6. Receipt of documents by owner, proof of A document signed by the owner acknowledging receipt of a notice referred to in section 4(2) or of a copy of a signed contract, or both, and showing the date of receipt is evidence that the notice or copy of the contract was received by the owner on that day. 7. Variation of contract to be in writing and given to owner (1) A variation of a contract — (a) must be in writing — (i) setting out all of the terms of, and the cost of, the variation; (ii) showing the date of the variation; and (b) must be signed by the builder and the owner or their respective agents. (2) The owner or his agent must be given a copy of the signed variation — (a) as soon as is reasonably practicable after it has been signed by both parties; and (b) before the work to which the variation relates is commenced. (3) A builder who is a party to a variation of a contract must ensure that the requirements of subsections (1) and (2) are complied with in respect of that variation. Penalty: $500. (4) This section has effect subject to sections 8 and 13(4) and clause 5 of Schedule 1. (5) In this section and in section 8 contract includes any previous variation of the contract. 8. Exceptions to s. 7 and related provisions (1) Section 7(1) and (2) does not apply to a variation of a contract that is made necessary by — (a) any written direction lawfully given by a person acting under a written law; or (b) circumstances that could not reasonably have been foreseen by the builder at the time when the contract was entered into, if the builder gives to the owner, within the time allowed by subsection (2), a statement setting out the reason for, and the cost to be incurred on account of, the variation and a copy of any direction referred to in paragraph (a). (2) A statement under subsection (1) must be given within 10 working days after the builder — (a) received notice of the direction under paragraph (a); or (b) became aware, or should reasonably have become aware, of the circumstances referred to in paragraph (b), of that subsection, as the case may be. (3) Where — (a) a statement is given to the owner by the builder for the purposes of subsection (1)(b); and (b) the owner considers that the variation is not one to which subsection (1) applies, the owner cannot make a complaint as provided in section 17 unless the owner makes the complaint within 10 working days after the statement was given to the owner. (4) Subsection (1)(b) does not enable a builder to vary a contract, except in accordance with section 7(1) and (2) or 13(4) or clause 4 of Schedule 1, by reason only of an increase in the costs of labour (including related overhead expenses) or materials, or both, to be incurred by the builder. [Section 8 amended: No. 14 of 1996 s. 4; No. 76 of 2000 s. 46; No. 16 of 2011 s. 114; No. 24 of 2011 s. 163(2) and (3).] 9. Building permit etc., implied conditions and terms as to (1) Subject to subsection (5) every contract is conditional upon — (a) a building permit being granted, in respect of the home building work included in the contract, within 45 working days from the date of the contract; and (b) where a condition is attached to the permit which will result in a variation of the contract, the owner and the builder acknowledging in writing within that period that each of them accepts that condition; and (c) it becoming lawful under the Water Services Act 2012 section 82, within 45 working days from the date of the contract, for the home building work to be commenced; and (d) where a direction is given by a licensee under the Water Services Act 2012 section 82 in connection with the carrying out of the work which will result in a variation of the contract, the owner and the builder acknowledging in writing within that period that each of them accepts that direction. (2) It is a term of every contract that — (a) the builder will — (i) do all things that are reasonably necessary to be done to ensure that any condition referred to in subsection (1)(a) and (c) applicable to the contract is fulfilled; and (ii) not unreasonably decline to accept a condition or direction referred to in subsection (1)(b) or (d) that applies to the contract; (b) the owner will — (i) do all such things as may be required to be done by the owner to ensure that any condition referred to in subsection (1)(a) and (c) applicable to the contract is fulfilled; and (ii) not unreasonably decline to accept a condition or direction referred to in subsection (1)(b) or (d) that applies to the contract. (3) If a builder properly submits to the relevant authorities within 20 working days after the date of the contract all necessary applications required for the purpose of having conditions referred to in subsection (1)(a) and (c) fulfilled, the builder is to be taken to have complied with the builder's obligations under subsection (2)(a)(i). (4) If a condition implied by subsection (1) is not fulfilled the consequences to, and the rights and remedies of, the parties are as set out in Schedule 1. (5) A condition referred to in a paragraph of subsection (1) does not apply to a contract — (a) to the extent that the subject matter of the condition was completed before the contract was entered into; or (b) where the only work to be performed under the contract is the construction or carrying out of associated work; or (c) for any other prescribed home building work. [(6) Deleted.] [Section 9 amended: No. 73 of 1995 s. 188; No. 14 of 1996 s. 4; No. 76 of 2000 s. 47; No. 37 of 2002 s. 6; No. 24 of 2011 s. 163(4) and (5); No. 25 of 2012 s. 217.] 10. Deposits and progress payments, limits on terms as to (1) A builder must not enter into a contract which provides that the builder is entitled to demand or receive from the owner any payment — (a) before the commencement of the home building work to which the contract relates unless the payment is — (i) a deposit of not more than 6.5% of the total amount payable to the builder under the contract for the home building work; or (ii) of a prescribed kind; (b) after the commencement of the home building work unless the payment is — (i) a genuine progress payment for work already performed or materials or services already supplied; or (ii) is of a prescribed kind. Penalty: $10 000. (2) Where a contract provides for the purchase by the owner of materials for a dwelling in a prefabricated form or of a dwelling that is transportable or for a similar arrangement, a payment for the materials or dwelling and associated work is a genuine progress payment for the purposes of subsection (1)(b)(i) — (a) if property in the materials or dwelling passes absolutely to the owner on the payment being made; and (b) notwithstanding that the materials or dwelling are not placed on or affixed to the land of the owner. (3) Where — (a) a contract sets out a schedule of payments due at specified stages of the home building work; and (b) a payment is demanded or required in accordance with that schedule, the payment is to be taken to be a genuine progress payment for the purposes of subsection (1)(b)(i) until the contrary is shown. (4) If a builder enters into a contract in breach of subsection (1), the contract may be terminated by the owner in accordance with section 19. (5) A builder under a contract must not demand or receive from the owner any payment after the commencement of the home building work unless the payment is a genuine progress payment for the purposes of subsection (1)(b)(i) or of a prescribed kind under subsection (1)(b)(ii). Penalty: $10 000. [Section 10 amended: No. 76 of 2000 s. 48.] 11. Defects, implied condition as to liability for (1) It is a term of every contract that the builder is liable to make good at the cost of the builder defects in the home building work notified in writing to the builder within the period of 4 months commencing on the day of practical completion. (1a) Nothing in subsection (1) prevents a contract from providing for a period greater than 4 months as the period within which the notification referred to in that subsection must be given. (2) In subsection (1) — defect means a failure — (a) to perform the home building work in a proper and workmanlike manner and in accordance with the contract; or (b) to supply materials that are of merchantable quality and reasonably fit for the purpose for which the owner required the home building work to be performed, not being a failure for which the builder is specifically declared by the contract to be not liable; practical completion means brought to the stage where the home building work is completed except for any omissions or defects which do not prevent the home building work from being reasonably capable of being used for its intended purpose. (3) The regulations may provide for exemptions from the requirements of this section. [Section 11 amended: No. 76 of 2000 s. 49.] 12. Understatement of prime cost items etc. by builder, offence (1) A builder must not enter into a contract that contains an amount or an estimated amount for a prime cost item or a provisional sum if the amount or estimated amount is misstated by being less than the least amount that it could reasonably cost to supply the item or perform the work to which the amount relates. Penalty: $10 000. (2) In determining whether an amount is misstated for the purposes of subsection (1) regard is to be had to the matters or contingencies that were known (which may be set out on the contract), or ought reasonably to have been known, to the builder at the date of the contract. 13. Rise‑and‑fall clause prohibited (1) A builder must not enter into a contract that contains a rise‑and‑fall clause. Penalty: $10 000. (2) A rise‑and‑fall clause in a contract is void. (3) In this section rise‑and‑fall clause means, subject to subsection (4), a provision under which a price stipulated for the performance of home building work may change to reflect changes in the costs of labour (including related overhead expenses) or materials, or both, to be incurred by the builder. (4) A provision of a contract is not within the definition in subsection (3) by reason only that it allows a builder to increase the stipulated price to reflect further costs actually imposed on or incurred by the builder — (a) as a direct consequence of a written law of the State or the Commonwealth; or (b) on account of an increase in any tax, duty or other charge imposed under any such law after the date of the contract; or (c) by reason of a delay in the commencement of home building work beyond 45 working days after the date of the contract being a delay — (i) that is caused solely by the failure of the owner to comply with a condition imposed on the owner by the contract, including a condition to the effect that the owner produce satisfactory evidence of the owner's ability to pay the contract price or of the owner's title to the land on which the work is to be performed; or (ii) that occurs without any failure on the part of either the owner or the builder to comply with his or her obligations under the contract. (5) Where subsection (4)(c) applies the consequences to, and the rights and remedies of, the parties are as set out in clauses 4 and 5 of Schedule 1. 14. Cost plus contracts, requirements as to (1) A builder must not enter into a cost plus contract with an owner for the performance of home building work unless the contract is in writing and the written contract — (a) has a heading at the beginning that includes the words "cost plus contract"; and (b) contains an acknowledgment by the parties that the contract is a cost plus contract and that this Act, apart from this section and Part 3A, does not apply to the contract. Penalty: $10 000. (2) Subsection (1) does not apply to a cost plus contract that comes within paragraph (b) of the definition of home building work contract in section 3. (3) If a builder enters into a cost plus contract in breach of subsection (1), the contract may be terminated by the owner in accordance with section 19. [Section 14 amended: No. 37 of 2002 s. 7.] 15. Unconscionable etc. conduct by builder as to contract etc. (1) A builder must not — (a) in connection with the formation or execution of a contract or negotiations to vary a contract after execution, or the circumstances in which the contract or variation of contract is entered into, engage in conduct that is unconscionable, harsh or oppressive; or (b) enter into a contract that contains any provision that is unconscionable, harsh or oppressive. (2) Without limiting the generality of subsection (1) regard may be had to the following for the purposes of that subsection — (a) the relative strengths of the bargaining positions of the builder and the owner; and (b) whether, as a result of conduct engaged in by the builder, the owner was required to comply with conditions that were not reasonably necessary for the protection of the legitimate interests of the builder; and (c) whether the owner was able to understand the contract; and (d) whether any undue influence or pressure was exerted on, or any unfair tactics were used against, the owner or a person acting on behalf of the owner by the builder or a person acting on behalf of the builder. (3) A provision of a contract must not be called in question under subsection (1)(b) by reason only that it entitles the builder — (a) by notice in writing given at any time before the commencement of the home building work to require the owner to satisfy the builder — (i) that the owner has title to the land on which the work is to be performed; and (ii) by production of evidence in writing, that the owner is able to pay the contract price; (b) by notice in writing given at any time before the commencement of home building work that is to be performed by way of a variation of a contract to require the owner to satisfy the builder, by the production of evidence in writing, that the owner is able to pay the price agreed for that work; (c) if the owner fails to satisfy the builder as mentioned in paragraph (a) or (b) within 10 working days of receipt of a notice under that paragraph, to terminate the contract or the variation, as the case may be, by notice in writing given to the owner within a further 10 working days. (4) The State Administrative Tribunal may approve a form of contract submitted to the Building Commissioner for an opinion on whether any provision is in breach of subsection (1)(b) and a provision in a form so approved must not be called in question under that subsection. (5) Forms of contract for various kinds of home building work may be prescribed which are to be taken to comply with all the requirements of this Act. (6) This section is enforceable as referred to in section 17 and not otherwise. [Section 15 amended: No. 76 of 2000 s. 50 and 57; No. 37 of 2002 s. 20; No. 16 of 2011 s. 115.] 15A. Misleading or deceptive conduct by builder or owner as to contract A person who is a builder or an owner must not, in connection with — (a) the formation or execution of a contract; or (b) negotiations to vary a contract after execution; or (c) the circumstances in which a contract or variation of contract is entered into, engage in conduct that is misleading or deceptive. [Section 15A inserted: No. 76 of 2000 s. 51.] Part 3 — Remedies [16. Deleted: No. 16 of 2011 s. 116] 17. Breach of contract or Part 2, or entitlement to compensation, procedure in case of If an owner or builder under a contract claims that — (a) there has been a breach of — (i) the contract, not being a breach in respect of which a building remedy order may be made under the Building Services (Complaint Resolution and Administration) Act 2011; or (ii) a provision in Part 2; or (b) the owner or builder is entitled to compensation under Schedule 1, then, subject to the Building Services (Complaint Resolution and Administration) Act 2011, the owner or builder may make a complaint under section 5(2) of that Act. [Section 17 inserted: No. 16 of 2011 s. 117.] [18. Deleted: No. 16 of 2011 s. 118] 19. How contract terminated (1) Where under section 4(5), 10(4) or 14(3) or Schedule 1 a party to a contract may terminate the contract the party may give notice of termination to the other party and the contract is terminated at the time when the notice is given. (2) A notice given by a party under subsection (1) must be in writing signed by the party and must be given to the other party before the completion of the home building work under the contract. 20. Adjustment of rights in certain cases If a contract is terminated under section 4(5), 10(4) or 14(3) or Schedule 1, the owner or builder may make a complaint under the Building Services (Complaint Resolution and Administration) Act 2011 section 5(2) claiming that the owner or builder is entitled to — (a) the return or repayment of the whole or part of any consideration, or the value of any consideration, given by the owner under or in relation to the contract; or (b) payment to the builder in respect of — (i) any materials supplied by the builder; or (ii) any home building work or other services performed by the builder; or (iii) costs, including overhead expenses and loss of profit, incurred by the builder, under or in relation to the contract. [Section 20 inserted: No. 16 of 2011 s. 119.] [21‑24. Deleted: No. 16 of 2011 s. 120] [25. Deleted: No. 76 of 2000 s. 55.] Part 3A — Home indemnity insurance and corresponding cover [Heading inserted: No. 72 of 1996 s. 5; amended: No. 37 of 2002 s. 8.] Division 1 — Introduction [Heading inserted: No. 72 of 1996 s. 5.] 25A. Terms used In this Part — approved fund means a fund that is approved under section 25GB; builder includes, in addition to the meaning given by the definition in section 3(1), a person who — (a) was registered under the repealed Act; or (b) is a building service contractor in a class of building service contractor prescribed by the regulations, whether or not the person carries on a business referred to in that definition; building contract means — (a) a residential building work contract; or (b) a cost plus contract between a builder and another person for the performance by the builder of residential building work but does not include a contract for the performance by a builder of residential building work for another builder who is in turn obliged to perform the work under another contract; building service contractor has the meaning given in the Building Services (Registration) Act 2011 section 3; corresponding cover — (a) in relation to residential building work performed by a builder, means the cover referred to in section 25DA; and (b) in relation to residential building work performed by an owner‑builder, means the cover referred to in section 25GA; cost of the building work means — (a) in relation to residential building work performed by a builder under a residential building work contract, the amount payable under the contract; or (b) in relation to residential building work performed — (i) by a builder on behalf of another person where the work is not performed under a residential building work contract; or (ii) by a builder on the builder's own behalf; or (iii) by an owner‑builder, the estimated cost of construction specified in the application for a building permit; developer means a person for whom residential building work is performed under a building contract in relation to 4 or more dwellings; insolvency means — (a) in relation to a natural person, insolvent under administration as that expression is defined in the Corporations Act 2001 of the Commonwealth; (b) in relation to a body corporate, subject to external administration under the Corporations Act 2001 of the Commonwealth; minimum amount means $10 000 or such other amount as is prescribed to be the minimum amount for the purposes of this section; owner-builder, in relation to a dwelling, means — (a) a person who constructs the dwelling under a building licence issued to that person in accordance with section 4A(1)(c) of the repealed Act; or (b) a person who — (i) was registered under the repealed Act; and (ii) constructs the dwelling for himself or herself as his or her principal place of residence and not for immediate sale; and (iii) was issued a building licence for the residential building work for the dwelling when no policy of insurance that complies with Division 2 was in force, or no corresponding cover (of the type referred to in section 25DA) was provided by an approved fund, in relation to the residential building work; or (c) a person who — (i) has owner‑builder approval under the Building Services (Registration) Act 2011 section 45 to carry out residential building work for the dwelling; and (ii) is issued a building licence or granted a building permit for the residential building work; or (d) a person who — (i) is a building service contractor in a class of building service contractor prescribed by the regulations for the purpose of this definition; and (ii) constructs the dwelling for himself or herself as his or her principal place of residence and not for immediate sale; and (iii) was issued a building licence or granted a building permit for the residential building work for the dwelling when no policy of insurance that complies with Division 2 was in force, or no corresponding cover (of the type referred to in section 25DA) was provided by an approved fund in relation to the residential building work; rescind, in relation to a contract, means to avoid the contract as from its beginning; residential building work means home building work that is — (a) home building work described in paragraph (a), (b) or (c) of the definition of that term in section 3; or (b) home building work described in paragraph (d) of the definition of that term in section 3, when — (i) it is to be performed under a contract which also includes the performance of home building work described in paragraph (a), (b) or (c) of that definition; or (ii) it is associated work of a prescribed kind, but does not include home building work where the cost of the building work is the minimum amount or less; residential building work contract means a contract, other than a cost plus contract, between a builder and another person for the performance by the builder of residential building work but does not include a contract for the performance by a builder of residential building work for another builder who is in turn obliged to perform the work under another contract; sale contract, in respect of residential building work performed by a builder or owner‑builder, means a contract to sell or otherwise dispose of — (a) a dwelling constructed by the builder or the owner‑builder; or (b) the land on which the building is constructed; settlement means the time at which the obliga