From 1 August 2017, the threshold amount for a major domestic building contract increased from $5,000 to $10,000, and the threshold amount above which cost plus contracts are permitted increased from $500,000 to $1 million.
You must give your client a copy of the Domestic Building Consumer Guide before they sign a major domestic building contract.
The law governing home building contracts in Victoria is the Domestic Building Contracts Act 1995, which:
- sets an amount for the deposit
- defines the stages of building and how much the client pays for each stage
- only allows certain changes to the contract price (legal changes include variations, and prime cost and provisional sum items).
By law, you must have a major domestic building contract for most work worth more than $10,000 (even if your client is an owner builder).
You must be registered with the Building and Plumbing Commission (BPC) to enter into a major domestic building contract.
Victoria has laws to prevent unfair contract terms in consumer contracts, including building contracts.