Penalties – builders and tradespeople

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Consumer Affairs Victoria can issue an infringement notice if we identify breaches of certain sections of the Domestic Building Contracts Act 1995.

An infringement notice allows you to pay a fine for these offences without an admission of guilt, rather than going to court.

The fine is less than the maximum penalty a court can impose if it found you guilty. For more information, view About infringement notices.

For full details of your legal obligations, refer to the Domestic Building Contracts Act 1995.

The value of a penalty unit is $192.31 for the 2023-24 financial year. For more information, visit the Indexation of fees and penalties - Department of Treasury and Finance.

Section of the Domestic Building Contracts Act

Obligation

Infringement notice penalty for breaching obligation

s.12(2)

A contract for more than one sort of work must clearly identify the domestic building work and money to be received for each of the works.

10 penalty units

s.22

Details of prime cost items and provisional sums must be set out in writing.

25 penalty units

s.23

A builder must supply the building owner with proof of cost of prime items and provisional sums as soon as possible.

10 penalty units

s.25

Within five days after entering into a domestic building contract, the builder must give the building owner a copy of the contract.

10 penalty units

s.26(1)

A builder must give to a building owner a copy of any documents the builder is given in relation to any public statutory authority, provider of services such as gas, electricity, telephone, water and sewerage, or person registered under the Building Act 1993, and must do so as soon as practicable after receiving the document.

10 penalty units

s.29

A builder must not enter into a major domestic building contract unless registered as a builder.

50 penalty units

s.31

A building contract must be in writing, be signed and contain all terms, details of the work and parties, relevant dates, prices and registration number.

25 penalty units

s.32(1)

A builder must make allowances for delays in time when calculating the date of the works to be finalised.

25 penalty units

s.36(2)

A builder must comply with a requirement, published by the Minister, in the Government Gazette, requiring builders to give anyone whom they enter, or are about to enter, into a major domestic building contract a copy of a document relating to that work.

10 penalty units

s.43(2)

A person who makes a display home available for inspection must have a copy of the plans and specifications used for its construction and a draft copy of the major domestic building contract prominently displayed in the display home.

25 penalty units