A building contract protects both you and your builder. In Victoria, the Domestic Building Contracts Act 1995 sets out specific requirements for residential construction contracts. Understanding what should be in your contract and what your rights are will help you enter the building process with confidence.
When a written contract is required
In Victoria, a written contract is required for any domestic building work valued at $10,000 or more. For work between $10,000 and $500,000, a major domestic building contract must be used. This is a legal requirement, not an optional extra.
Even for smaller projects under $10,000, a written agreement outlining the scope, price, and timeline is strongly recommended. We provide detailed written quotes for every project regardless of size, because clarity upfront prevents misunderstandings later.
What your contract should include
A compliant domestic building contract must include the names and addresses of both parties, a description of the work, the contract price, the start date and estimated completion date, details of any allowances and prime cost items, warranty information, and dispute resolution procedures.
Payment schedules are also regulated. The deposit cannot exceed 5% for projects over $20,000, and progress payments must be tied to specific stages of work rather than arbitrary dates. This protects homeowners from paying for work that has not been completed.
Handling variations
Variations are changes to the original scope of work. They happen on almost every project, sometimes because the homeowner wants to change something, sometimes because site conditions reveal something unexpected.
All variations should be documented in writing, with a clear description of the changed work and any cost impact, before the variation work begins. We handle variations transparently. If something changes, we discuss it with you, agree on the cost impact, and document it properly before proceeding.
Have questions about contracts and what to expect? We are happy to walk you through our process.
Schedule a CallWarranties and your rights
Under Victorian law, domestic building work carries implied warranties covering defects for six years for structural work and two years for non-structural work. These warranties apply regardless of what the contract says.
We stand behind our work with our own warranties, including a 10-year warranty on all fencing. We also carry $10,000,000 in public liability insurance. If something is not right, we come back and fix it. That is how we have always operated.