Letter of Appointment Terms and Conditions

1. Appointment of the relevant building surveyor

1.1 This document sets out the terms of Appointment of the RBS named in the schedule.
1.2 By signing this document the Owner appoints the RBS under section 78 of the Building Act as its RBS for the Building Work to be performed at the Building Site on the Terms contained in this document.
1.3 The Owner acknowledges that they independently appoint the RBS on these Terms notwithstanding any recommendation that may have been made by the Builder.
1.4 The RBS accepts the Appointment subject to any circumstances set out in section 79 of the Building Act which would prevent it from acting as the RBS.
1.5 Upon execution of these Terms by the RBS, the appointment is deemed to be accepted by the RBS.

2. RBS’s primary obligations

2.1 The RBS must:
a. perform the Services in accordance with all Legal Requirements;
b. in the performance of the Services, exercise the standard of professional skill, care and diligence to be expected of a competent RBS;
c. obtain all approvals required under any Legal Requirement for the performance of the Services;
d. do all things necessary and necessarily incidental for the performance of the Services.

3. RBS is not responsible for quality of workmanship

3.1 The Owner acknowledges that the RBS is not responsible for:

a. supervising or approving the workmanship of the Builder; or
b. ensuring the Builder has complied with the specifications under the building contract entered into with the Owner including but not limited to specifications in relation to the standard, quality and finish of the Building Works, the choice and quality of fixtures and fittings, the workmanship of sub-contractors to the Builder including but not limited to tilers, painters, plasterers, floor sanders, cabinet makers, electricians and plumbers.

4. The Owner’s primary obligations

4.1 The Owner must pay the RBS’s Fees, as adjusted by any additions or deductions made under the these Terms within 14 days of an Invoice being issued by the RBS.
4.2 If the Owner does not make payments within 14 days of an Invoice being issued, interest at a rate of 2% above the Bank Rate may be added to the unpaid Fees and must be paid by the Owner.
4.3 The Owner agrees to appoint the Builder as its agent in relation to all matters arising under these Terms including to make all payments on the Owner’s behalf and that once the Owner signs these terms the RBS may proceed on the basis that the Builder will act as the agent of the Owner.
4.4 The Owner acknowledges that the RBS will make arrangements directly with the Builder for the payment of the RBS’s Fees under these Terms including:
a. receiving purchase orders from the Builder;
b. issuing Invoices directly to the Builder;
c. the use by the Builder of the RBS’s software and technology systems to review the status of the RBS’s Services for Building Work and to make payments;
d. payments made by the Builder on behalf of other owners who have engaged the RBS for the same or similar services to those provided under these Terms.
4.5 The Owner may seek information from the Builder about the amounts paid under these Terms.
4.6 The Owner acknowledges that the RBS must inspect the Building Work in order to perform the Services and gives the RBS authority to access the Building Site at any time reasonably required by the RBS.
4.7 The Owner is responsible for making all necessary inquiries of the relevant council about the need for any planning approval and obtaining any necessary planning approvals to undertake the Building Work.
4.8 The Owner is responsible for complying with any covenants or other restrictions which apply to the land on which the Building Work will take place and no building permit issued by the RBS can be taken to give the Owner permission or authority not to comply with their obligations under property laws.
4.9 The parties acknowledge that the Builder is not a party to these Terms but the Builder will act as the agent for the Owner.

5. Owner gives authority to the Builder

5.1 Immediately following the acceptance of appointment by the RBS, the Owner by signing this document, agrees to appoint the Builder to act as their agent for the purposes of all matters relating to the Services including (but not limited to):

a. making an application to the RBS for a building permit for the Building Works in accordance with the requirements of the Building Act;
b. responding to any requests for information about the building permit application;
c. calling for all inspections of the works by the RBS;
d. making an application for an occupancy permit or certificate of final inspection;
5.2 Notwithstanding the above authority given by the Owner to the Builder:
a. the RBS is required by the Building Act to send a copy of the building permit to the Owner and to send copies of any written directions issued under the Building Act to the Owner;
b. the Owner may contact the RBS at any time.

6. Fees

6.1 The Fees payable under these Terms are calculated using the rates in the Schedule of Fees.
6.2 Additional Fees may be charged for Additional Services required under the Building Act which include (but are not limited to):

a. obtaining additional information or documents from a council or other government authority;
b. amending a building permit due to any change in circumstances or as result of a request from the Owner or their agent;
c. carrying out inspections of the Building Work which are in addition to the inspections required at mandatory notification stages of the Building Works;
d. reporting matters to the VBA;
e. responding to any requests for information from the VBA or other government authority including councils or the Building Appeals Board
f. issuing any notices or orders under Part 8 of the Building Act.

7. Goods and Services Tax

7.1 In this Clause 7 words that are defined in the A New Tax System (Goods and Services Tax) Act 1999 (Cth) have the same meaning as given in that Act.
7.2 Except as otherwise provided by this Clause 7, all consideration payable under the Terms in relation to any supply is exclusive of GST.
7.3 If an adjustment event occurs in relation to a taxable supply under these Terms:

a. the supplier must provide an adjustment note to the recipient within 7 days of becoming aware of the adjustment; and
b. any payment necessary to give effect to the adjustment must be made within 7 days after the date of receipt of the adjustment note.

8. Occupational Health and Safety

8.1 The RBS agrees to comply with all Legal Requirements in relation to occupational health and safety as relevant to its Services.

9. Personal Information

9.1 Where personal information of the Owner is provided to the RBS, the RBS will use that information for the purposes of fulfilling its obligations under these Terms and in accordance with its Information Privacy Statement which can be found at www.groupfour.com.au/privacy

10. Insurance

10.1 The RBS holds all insurances required by the Building Act.

11. Liability and Warranties

11.1 To the extent permitted by law, the RBS’s liability to the Owner arising from the provision of the Services is limited to either the RBS resupplying the Services or reimbursement by the RBS of Fees paid for its Services.
11.2 The RBS is not liable to the Owner for any consequential loss and damage whatsoever arising from or in relation to the provision of the Services
11.3 The RBS makes no warranties in relation to the performance of the Services except those that it is required to make by law.

12. Indemnity

12.1 The Owner must indemnify the RBS on demand from and against any Claim or Loss suffered or incurred by the RBS arising out of or in connection with any breach of the Terms by the Owner or negligence by the Owner.
12.2 The Owner’s liability to indemnify the RBS under this Clause 11 will be reduced proportionately to the extent that a wrongful or negligent act or omission of the Owner or its employees, agents or other contractors contributed to the Claim or Loss.

13. Assignment

13.1 The Owner may not assign or novate the benefit of these Terms to any person.
13.2 The RBS may assign or novate the benefit of these Terms to any other person provided that 7 Business Days written notice of the assignment or novation is provided to the Owner and provided that any requirements of the Building Act in relation to the termination of the Appointment are met.

14. Variation

14.1 The RBS may amend or vary any Terms by providing 7 Business Days written notice of the amendment or variation to the Owner, in which case the Owner’s continued use of the Services shall be deemed to be acceptance of the amendment or variation.

15. Termination

15.1 Termination of the Appointment is subject to compliance with the requirements in the Building Act for the termination of the appointment of an RBS.
15.2 Upon termination by either party:
a. the Owner will be liable to the RBS for any Fees which were due and payable by the Owner to the RBS under the Terms as at the date of termination; and the Owner will be liable to the RBS for any Loss that the RBS has incurred or is likely to incur arising out of or in connection with the termination as a debt due and payable from the Owner to the RBS.
b. the Owner will be liable to the RBS for any Fees which were due and payable by the Owner to the RBS under the Terms as at the date of termination; and the Owner will be liable to the RBS for any Loss that the RBS has incurred or is likely to incur arising out of or in connection with the termination as a debt due and payable from the Owner to the RBS

16. Dispute resolution

16.1 If a dispute or difference between the parties arises in connection with the Terms, then either party may deliver by hand or send by registered post to the other party, a written notice of dispute identifying and providing details of the dispute.
16.2 Within 10 Business Days of the receipt of a notice of dispute, the parties will confer and undertake good faith negotiations in an attempt to resolve the dispute.
16.3 If the dispute remains unresolved the parties must within a further 10 Business Days, or such other period agreed by the parties in writing, attempt to reach agreement on an alternative dispute resolution procedure such as the appointment of an independent person to mediate the dispute.
16.4 Each party must continue to fulfil its obligations under these Terms during the period which the parties are attempting to resolve the dispute.

17. General Terms and Definitions

17.1 These Terms comprise the entire understanding between the parties and no regard will be had to any prior dealings.
17.2 The Appointment comes into effect from the date of execution by the RBS and continues until the date the Occupancy Permit for the Building Works is issued or the final Invoice is paid, whichever is the later date.
17.3 In the interpretation of these Terms no rule of construction applies to the disadvantage of the RBS on the basis that the RBS prepared the Terms.
17.4 The Terms are governed by the laws of the State of Victoria.
17.5 Any Clause which is held to be illegal, invalid, void, voidable or unenforceable will be severed from these Terms and the remaining provisions will remain in force.
17.6 All notices or documents to be given to either party under these Terms may be given electronically to the email address stated in the Schedule or to a substitute email address advised by one party to the other from time to time as the address to which notices may be given.
17.7 All obligations to indemnify under the Terms survive termination or expiration and completion of the Appointment.
17.8 In the Terms:
‘Additional Fees’ means those Fees that may be charged for Additional Services based on the hourly rate set out in the Schedule as referred to in Clause 5.
‘Additional Services’ means those Services that may be required and for which Additional Fees may be charged as referred to in Clause 5.
‘Appointment’ means the appointment of the RBS under section 78 of the Building Act by the Owner pursuant to these Terms.
‘Bank Rate’ means the Westpac Banking Corporation 30 day bank bill business loan variable interest rate on the date on which the Fees were payable.
‘Builder’ means the party, however described, with whom the Owner enters into a building contract;
‘Building Act’ means the Building Act 1993 (Vic) as amended.
‘Building Regulations’ means the Building Regulations 2006 (Vic) as amended
‘Building Work’ means the work described in the Schedule in respect of which the Services are to be performed.
‘Building Site’ means the property listed in the Schedule on which the Building Work is to be performed.
‘Business Days’ means any day that is a week day except for public holidays;
‘Claim’ includes any action, claim, demand or proceeding, including for the payment of money or any other relief or remedy, and whether arising in contract, tort (including negligence), restitution, under statute or otherwise at law or in equity;
‘Fee’ means the amount to be paid by the Owner to the RBS by reference to the rates as specified in the Schedule including all disbursements and expenses (other than the Reimbursable Expenses) but excluding any additions or deductions which may be required to be made by the Terms;
‘Invoice’ means a claim for payment by the RBS which includes a tax invoice and sets out:
a. details of the part of the Services performed to which the claim relates;
b. the amount claimed by the RBS;
c. details of any Reimbursable Expenses claimed.
‘Legal Requirements’ means:
a. all laws (including statutes, regulations, the common law, codes and standards) relevant to the Services; and
b. the requirements of all authorities or persons having jurisdiction over or in respect of any part of the Site or the Services;
‘Loss’ includes any cost, loss, liability, action, damage or expense, howsoever arising;
‘RBS’ means relevant building surveyor as defined in the Building Act
‘Reimbursable Expenses’ means those disbursements and expenses detailed in the Covering Page (if any);
‘Schedule’ means the first page of this document which contains details including details of the parties, the Building Works, the Building Site and the Schedule of Fees.
‘Services’ means the services described in the Schedule, as may be more fully set out in or reasonably ascertainable from the Building Act, together with all tasks and activities incidental to and necessary for the performance of the Services;
‘Terms’ means the terms of appointment contained in this document;
‘VBA’ means the Victorian Building Authority

Schedule 1 – Fees
Building Permits

Building Permit Fees Victoria Wide

Dwelling TypeUnit Price ex. GSTGSTTotal Inc. GST
Building Permit Single Storey*$1500$150$1650
Building Permit Double Storey*$1650$165$1815
*Less that 40sq
Inspections

Inspection Fees based on location

Mandatory Inspection TypeRegion ARegion B
Single Storey$150$250
Double Storey$200$300
Triple StoreyPOA
Multi UnitsPOA

Region A: All metropolitan council including Greater Geelong, Surf Coast, Mornington Peninsula, Cardinia and Yarra Ranges

Region B: All other regions Group Four operate in, refer to map: http://groupfour.com.au/building-inspections-melbourne/

Statutory Charges

Estimate as they are subject to change by the relevant authorities

Building Permit Government Levy based on 0.128% of Cost of Works$TBA
Lodgement and Administration Fee$44.30

All Pricing ex. GST unless otherwise states.

Fees are subject to change without notice.

Additional Service DescriptionUnit Price ex. GST
Part 4 Assessments$250
Relevant Authorities DisbursementsPOA
Amendments – Minor$150
Amendments – Major$250
Protection Notice Determinations$275 min.
Same Day Inspections (on top of base rate)$180
Weekend Inspections$350
Building Notices$1000
Building Orders$2000
Cancelled InspectionsBase Rate
Alternative Solution Acceptance Letters$50
Alternative Solutions Reports$660 per hr (min)
Not approved Mandatory InspectionsAdditional $50 to base rate
Protection of the Public Assessments$250 per hr. (min)
Multi Unit Inspections (more than 2)10% discount of subsequent inspections carried out at same location

All pricing is ex. GST unless otherwise stated. Fees are subject to change without notice.