Two tiers of contract in each state
| State | Smaller jobs | Larger jobs |
|---|---|---|
| NSW | $5,000 to $20,000: a small job contract with basic information, dated and signed by each party | More than $20,000: a large job contract with a longer list of required contents |
| Queensland | $3,301 to $19,999: a Level 1 contract | $20,000 or more: a Level 2 contract, with everything in Level 1 and more |
Below those amounts, the QBCC still recommends keeping a record or agreement, and publishes a two-page small building projects contract for it. In Victoria, Consumer Affairs Victoria recommends a written contract for all building work, whatever its size and price.
A large job contract in NSW
A selection of what NSW says a contract for work over $20,000 must contain:
- the date it was signed by both of you, and the parties’ names, including the licence holder’s name exactly as it appears on the contractor licence
- a sufficient description of the work, with plans and specifications attached
- the contract price, prominently displayed on the first page, with a warning and explanation if the price could change or is not known
- the warranties the Home Building Act 1989 requires
- a clear statement of the cooling-off period of five clear business days
- a checklist of 17 items, and a caution about signing if you cannot answer yes to all of them
- a progress payment schedule
- a note that the contractor must give you a Home Building Compensation certificate of insurance
- a clause that any agreement to vary the contract, or its plans and specifications, must be in writing and signed by both of you
- your acknowledgement that you have read and understood the Consumer Building Guide.
Before you and the builder enter a contract for residential building work costing more than $5,000, the builder must give you the Consumer Building Guide. The full list, and a sample contract to download, are on the NSW contracts page.
Level 1 and Level 2 contracts in Queensland
Level 1 must include
- the names of the parties, with the contractor’s name and licence number as on their licence
- the address of the work, and a description of it
- the contract price, or how it will be worked out
- the Queensland Home Warranty Scheme premium
- the completion date, or how it will be decided
- any plans and specifications
- a notice of your cooling-off rights.
A fully signed copy of the whole contract must reach you within five business days of entering it.
Level 2 adds
- the QBCC Consumer Building Guide, given to you before you sign
- a start date as well as a date for practical completion
- the price and a price change warning on the first page of the contract schedule
- if the price is not fixed, how it is calculated, including allowances such as prime cost items and provisional sums
- the statutory warranties, stated in the contract.
The warranties include that materials are new and suitable unless the contract says otherwise, and that the work is done with reasonable care, skill and diligence.
The cooling-off period
In NSW, a contract over $20,000 must set out a cooling-off period of five clear business days after you are given a copy of the contract.
In Queensland, every contract for building work over $3,300 must tell you about your cooling-off rights. You generally have five business days to withdraw, starting the day after you receive a signed copy of the whole contract and, for contracts of $20,000 or more, the Consumer Building Guide. If the contractor is late with these documents, the period runs later.
- The QBCC says you must “give the contractor a written and signed withdrawal notice stating you are withdrawing from the contract under the cooling-off provisions in section 35 of Schedule 1B of the QBCC Act.”
- Pay the costs the Act allows, which the QBCC says are usually $100 plus any out-of-pocket expenses the contractor reasonably incurred before you withdrew.
The Queensland right does not apply if you and the contractor had an earlier contract on substantially the same terms, covering substantially the same services, for the same site or home; if, before entering into the contract, you had formal legal advice on it from a practising lawyer; or if you told the contractor you had received that advice. Victoria has a similar trade-off: Consumer Affairs Victoria recommends independent legal advice before you sign, but notes it means you no longer have five days to change your mind afterwards.
Clauses the regulators warn about
| Clause | Where | What the regulator says |
|---|---|---|
| Arbitration | NSW | Arbitration clauses are not permitted in a home building contract and are void. |
| Termite control | NSW | Make sure nothing makes you, instead of the builder, responsible for termite control. |
| Cost plus | Queensland | Under cost plus and construction management contracts, home owners lose the scheme’s protection for non-completion. The QBCC strongly recommends formal legal advice before agreeing to either. |
| Rise and fall | Victoria | A cost escalation clause is an illegal term unless the price exceeds $500,000, and the Director of Consumer Affairs Victoria must approve it; the page says no such clause has yet been approved. Victoria’s new building contract laws, taking effect by 1 December 2026, will allow cost escalation clauses for contracts worth $1 million or more, adding up to 5% to the price; check Consumer Affairs Victoria before you sign. |
| Your warranties | Victoria | Any statement that restricts or denies your implied warranties is an illegal term. |
| Preliminary agreements | Queensland | Fees or penalties for not going ahead with the building contract after receiving the final price may be illegal; get legal advice before signing one. |
In NSW the builder must give you a copy of the signed contract within five business days of signing, not counting weekends, NSW public holidays or 27 to 31 December. Consumer Affairs Victoria’s advice is not to accept a copy unless the builder has signed it. Changes after signing are variations, covered in notice 05.