Clause 7. Security Account and Ability to Pay This is an essential matter. Refer to Clause 4.
7.1 The owner , when requested by the builder at any time, must deposit that part of the contract price not being supplied by a lending body into an account at a bank, building society or a similarly recognised financial institution (to be known as a security account ). The security account must be in the joint names of the owner and the builder with: (a) the owner receiving interest, if any, on the money deposited in the account; and (b) the builder as joint signatory for any withdrawal from the account. 7.2 The owner must, within 2 working days of being requested by the builder at any time, give the builder written evidence, to the builder's satisfaction, of the owner's ability to pay all money that is or may become payable to the builder under this contract .
Clause 8. Accuracy of Contract Documents
8.1 Where the owner supplies any contract document , the owner warrants: (a) that contract document is accurate; and (b) the suitability of the design, materials and methods of working each specified therein. 8.2 If either party becomes aware of any error, ambiguity or inconsistency in or between the contract documents , that party must, within 2 working days of becoming aware, give the other party written notice detailing the problem. 8.3 The owner must, within 2 working days of receiving a notice or becoming aware of a problem, give the builder written instructions as to how the builder is to proceed with the building works . 8.4 If the owner fails to give the builder such written instructions within 2 working days , the builder may proceed with the building works applying the following order of precedence:
Notices are to be given in the manner set out in Clause 23.
(a) any special conditions; (b) these general conditions; (c) the specifications; (d) the plans, then (e) other documents.
8.5 If:
(a) compliance with the owner's instructions or the order of precedence, as applicable, involves more or less cost than a reasonable builder would have anticipated on the signing of this contract ; and (b) the problem is caused by documents other than those provided by the builder , the owner is deemed to have asked the builder for a variation to carry out that work and the procedure for variations in Clause 18 will apply. 8.6 In relation to a document that is: (a) supplied by; (b) prepared under instruction of; or (c) prepared from sketches provided by,
For variations refer to Clause 18.
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