Laws about home building contracts

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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. For more information on this and other building law changes, view our Domestic Building Consumer Guide page.

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 Victorian Building Authority to enter into a major domestic building contract.

Victoria has laws to prevent unfair contract terms in consumer contracts, including building contracts.

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