Extensions and renovations that involve structural changes to your home are building projects under Victorian law, regardless of the size or cost.
You must have a major domestic building contract for work worth more than $5000, including:
- renovations, alterations, extensions, repairs and any other improvements
- work associated with renovation, alteration, extension or repair of a home. This includes landscaping, paving, retaining structures, driveways, fencing, garages, workshops, swimming pools or spas
- preparation of plans or specifications by the builder for the work
- any work associated with building on land zoned for residential purposes and for which a building permit is required.
We recommend you have a written contract for all work, regardless of cost. For more information about contracts, view our Contracts for building projects page.
Only registered builders can:
- enter into a major domestic building contract and take out domestic building insurance, which is required for work over $12,000
- reblock, restump, demolish or remove a home, regardless of the value of this work.
Some extension and specialist companies, such as those dealing with bathroom renovations and kitchen renovations, will not provide detailed information and a price unless you sign a contract and pay a deposit for plans and specifications.
Signing this type of contract might mean you cannot use the plans elsewhere, despite paying for them.
If you change your mind after any cooling-off period, you may not get all your money back and could lose your plans.
Warning for potential owner builders
Be wary if a builder or tradesperson suggests you sign a building permit as an owner builder for your extension or renovation, even though they will be doing the work.
This is risky for you and may end up costing a lot more than you expect. The builder may be unregistered and/or trying to avoid their legal responsibilities.
Contact us or your lawyer to get advice before you agree to become an owner builder in these circumstances. You can find more information about what it means to be an owner builder on our Owner builders page.
Last updated: 28/01/2012