A building contract is the rulebook for your project. Victorian law gives homeowners strong protections, but only if you know they exist. Here are the ones that matter most before you sign.
When is a written contract required?
Under the Domestic Building Contracts Act 1995 (Vic), a contract to carry out domestic building work worth more than $10,000 is a major domestic building contract. It must be in writing and include the information the Act requires, such as the price, a description of the work, the start and completion dates, and the builder's registration details. The builder must be registered with the Building and Plumbing Commission for work of that value.
How much deposit can a builder ask for?
- If the contract price is less than $20,000: no more than 10%.
- If the contract price is $20,000 or more: no more than 5%.
A builder asking for more is a red flag. Payments after the deposit must be tied to stages of the work, as set out in the contract and permitted by the Act. Do not pay for stages that have not been completed.
Can I change my mind after signing?
Yes. Under section 34 of the Act, a building owner may end a major domestic building contract at any time before the end of five clear business days after receiving a copy of the signed contract. The builder may be entitled to keep a small amount to cover out-of-pocket expenses, as the Act allows. Get advice quickly if you are considering this.
What is Home Warranty cover?
Home Warranty replaced domestic building insurance for new contracts from 1 July 2026. It applies to eligible domestic building work valued at more than $20,000 and is provided by the Building and Plumbing Commission. The registered builder must pay the premium before the earlier of 10 business days after the contract is signed, or the work starting. Home Warranty may provide up to $400,000 in total assistance per home, subject to eligibility, limits and exclusions.
Before you pay a deposit, ask your builder for evidence the Home Warranty premium has been or will be paid within that timeframe.
Who appoints the building surveyor?
You do. A builder who has a major domestic building contract with you must not appoint a private building surveyor on your behalf. The surveyor's role is to check the work complies, independently of the builder.
What should the contract include? A checklist
- Builder's name, registration number and ABN
- A clear description of the work, drawings and specifications
- The contract price, and any provisional sums or prime cost items, with their allowances
- Start date, completion date or build time, and how delays are handled
- The progress payment stages
- How variations are requested, priced and approved in writing
- Home Warranty details
- Who is responsible for the building permit and surveyor appointment
Provisional sums and prime cost items are allowances for work or items not yet fully priced. If the allowances are unrealistic, your final price will rise. Ask how each was calculated.
What if something goes wrong?
Talk to your builder first and put concerns in writing. If a domestic building dispute cannot be resolved, the Building and Plumbing Commission provides dispute resolution services. Some matters may proceed to VCAT.
How AxisPro helps
We explain every contract line before you sign, including allowances, stages and variations. Transparent contracts protect both parties and set the tone for the whole build.