Before you sign a home building contract, check the deposit, the insurance and your state’s cooling-off rule. Deposit caps are mostly 5% to 10% of the price (6.5% in WA), and the ACT has no cap. In NSW, WA and the NT, for insured work, no money, including the deposit, should be paid before the insurance or fidelity certificate is given. Five states give a 5 business day cooling-off, but in Queensland, Tasmania and Victoria getting legal advice before signing can remove it. Our review is not legal advice from a lawyer.
Prepared by Claim Done from each state and territory’s home building legislation and official regulator and tribunal pages listed under Sources. Last checked 7 November 2026. The NSW Act could not be read from the official site on that date, so NSW points rest on NSW Government pages and the NSW Government’s own contract template, without section numbers.
Cooling-off and legal advice: read this first
In three states, getting legal advice before you sign can cost you the cooling-off right:
- Victoria: no cooling-off if you received independent advice from an Australian legal practitioner before signing (Domestic Building Contracts Act 1995 s 34(4)).
- Queensland: no cooling-off if you received “formal legal advice” (paid, independent advice) before signing, or you tell the builder you did (QBCC Act Sch 1B s 36(3)-(4)).
- Tasmania: the same rule for paid formal legal advice before signing, or saying you had it (Residential Building Work Contracts and Dispute Resolution Act 2016 s 34(3)-(4)).
In NSW the cooling-off period can be shortened or removed only if you give the builder a lawyer’s certificate (NSW Government contract template).
Our review is a plain-English report, not legal advice from a lawyer. Claim Done is not a law firm. Do not describe the report to your builder as legal advice. The report sets out the cooling-off rule for your state so you can decide what to do before your time runs out.
Building contracts at a glance, by state
| State | Maximum deposit | Statutory cooling-off | Insurance needed from |
|---|---|---|---|
| NSW | 10% | 5 clear business days (over $20,000) | Over $20,000 incl. GST |
| VIC | 5% at $20,000 or more; 10% under | 5 clear business days (over $10,000) | Over $20,000 (contracts from 1 July 2026) |
| QLD | 10% under $20,000; 5% at $20,000 or more; 20% if off-site work is over half | 5 business days (regulated contracts over $3,300) | Insurable value over $3,300 |
| WA | 6.5% (20% for mostly off-site cabinetry) | None | Over $20,000 where a building permit is needed |
| SA | 5% at $20,000 or more | 5 clear business days ($20,000 or more) | Work needing development approval, other than minor work |
| TAS | 10% under $50,000; 5% at $50,000 or more; 20% if off-site work is over half | 5 business days ($20,000 or more) | No home warranty insurance scheme in the current Act |
| ACT | No cap | None | $12,000 or more (class 1 or 2, up to 3 storeys) |
| NT | 5% (new houses $25,000 or more) | None | $25,000 or more on a class 1a or prescribed class 2 home, including extensions |
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Should I sign this building contract?
Not until you have checked the money and your exit. Check these first:
- The builder’s licence or registration number is on the contract.
- The deposit is within your state’s cap. Count every payment before work starts.
- The insurance certificate: in some states you should not pay anything until you have it.
- The progress payments are tied to completed stages, not dates.
- Prime cost items and provisional sums are realistic, with quantities and rates.
- Price changes: any cost-plus, rise-and-fall or escalation clause, and how variations are approved.
- The cooling-off notice: how long, how to use it, and what it costs.
When must a building contract be in writing?
| State | Written contract rules |
|---|---|
| NSW | Over $5,000 incl. GST. Small job contract for $5,000 to $20,000; large job contract over $20,000, with the price prominent on page 1 and a warning if it may change. Consumer Building Guide before signing; signed copy within 5 business days |
| VIC | A major domestic building contract is one over $10,000 (s 3(1); Regs r 6). Contract information statement before signing (s 29A); the contract has no effect unless both parties sign it (s 31). Single-trade contracts (painting, tiling, plumbing, electrical and similar) are outside the Act (Regs r 7) |
| QLD | Over $3,300: written, dated and signed. Level 2 ($20,000 or more) also needs a start date, a warranties statement, the price on page 1 and a page-1 warning if it can change. Work must not start until the contract complies (Sch 1B ss 13, 14, 30) |
| WA | Over $7,500 and under $500,000: written, dated and signed by both, with the prescribed notice given before signing (Home Building Contracts Act 1991 ss 3, 4). Every contract is conditional on a building permit within 45 working days (s 9) |
| SA | Written, signed, with all terms and the Form 1 notice (Building Work Contractors Act 1995 s 28). These rules do not apply to minor work: under $20,000 for contracts from 10 November 2025 (Regs 2026 r 4(4)) |
| TAS | $20,000 or more: written and signed by both, with the consumer guide given before signing (2016 Act ss 9, 13-15, 39) |
| ACT | No legal requirement for a written contract. The ACT planning page says “there is no requirement in ACT legislation to enter into a written contract” |
| NT | A new detached house (class 1a) of $25,000 or more needs a contract with set contents, including the deposit and stage percentages (Building Act 1993 s 48B; Building Regulations rr 41F-41J) |
How much deposit can a builder ask for?
| State | Deposit cap and what counts |
|---|---|
| NSW | 10%. Any pre-start payment counts toward it, “irrespective of whether the payment is described as a deposit” (NSW contract template) |
| VIC | “5% of any contract price that is $20 000 or more”; 10% under $20,000. If breached, you may avoid the contract (DBCA s 11) |
| QLD | Level 1: 10%. Level 2: 5%. 20% if off-site work is more than half the price. The deposit includes any pre-start payment, “including, for example, any insurance premium” (Sch 1B s 33) |
| WA | “a deposit of not more than 6.5% of the total amount payable” (s 10(1)(a)(i)); 20% for cabinetry with more than half the work off-site. If breached, you may terminate (s 10(4)) |
| SA | 5% where the price is $20,000 or more, plus third-party professional fees and reimbursement of the insurance premium and statutory fees (s 30) |
| TAS | 10% under $50,000; 5% at $50,000 or more; 20% if off-site work is more than half (s 41; Regs 2026 r 6) |
| ACT | “There is no limit on the initial deposit for the work in the ACT.” The insurer refunds at most $10,000 of a lost deposit |
| NT | “must not request or receive a deposit from the contracting owner of more than 5% of the total contracted price” (Regs r 41HE(1)) |
Home warranty insurance: when must it be in place?
The order matters: in some states you should not pay a cent until you hold the certificate.
| State | Insurance and timing |
|---|---|
| NSW | Home Building Compensation cover for each project over $20,000 incl. GST. The builder “must give you evidence of HBC cover before they start work on your project or you pay them any money, including a deposit” (NSW Government) |
| VIC | Statutory cover for contracts over $20,000 from 1 July 2026 (not apartment buildings). The builder must pay the premium before the earlier of 10 business days after the contract or the start of work (Building Act 1993 s 137O(1)); no building permit without a notice of cover |
| QLD | Covers residential work with an insurable value over $3,300. The contractor collects the premium from you and pays it before the earlier of 10 business days after the contract or the start of work (QBCC Act s 68B(2)); cover applies even if it is not paid (s 68H) |
| WA | Home indemnity insurance over $20,000 where a building permit is needed. The certificate must be given “prior to a demand from the builder for any payment … including any deposit” (s 25C(2)). Minimum cover $200,000; deposit loss covered up to $40,000 |
| SA | Building indemnity insurance: no work until a policy is in force and you have the certificate (s 34). It covers only the builder’s insolvency, death or disappearance; minimum $250,000 per dwelling for policies from 10 November 2025 |
| TAS | No home warranty insurance scheme in the current Act. Your deposit is not protected by insurance |
| ACT | Insurance or fidelity certificate for work of $12,000 or more; it must accompany the builder’s application for a commencement notice (Building Act 2004 s 37(4)). Minimum $200,000 |
| NT | Fidelity certificate or residential building insurance for work of $25,000 or more on a class 1a or prescribed class 2 home, including extensions. No work and no payment “whether as a deposit or otherwise” until it is in force and given to you (Building Act 1993 s 54AC) |
Building contract cooling-off period by state
| State | Period and how to use it | What it costs you | When you lose it |
|---|---|---|---|
| NSW | 5 clear business days after you are given a copy of the contract (over $20,000), by written notice. Can be used even if work has started | The builder’s reasonable out-of-pocket expenses plus a reasonable price for work done | Only by a lawyer’s certificate; also excluded for some contracts (template) |
| VIC | 5 clear business days after you receive the signed contract, by signed written notice (s 34) | $100 plus out-of-pocket expenses you approved (s 34(3)) | Independent advice from an Australian legal practitioner before signing, or a substantially identical earlier contract (s 34(4)) |
| QLD | 5 business days after you receive the signed contract (Sch 1B s 35), by written, signed notice (s 37) | $100 plus reasonable out-of-pocket expenses (s 38) | Formal legal advice before signing, telling the builder you had it, or a substantially identical earlier contract (s 36(3)-(4)) |
| WA | None in the Home Building Contracts Act | – | – |
| SA | 5 clear business days after the contract is made, by signed written notice served personally or by certified mail (s 36(3)) | No fixed fee; the Magistrates Court can order repayments (s 36(4)) | Not available for minor work |
| TAS | 5 business days after the later of receiving the signed contract and the consumer guide (s 33), by written notice | $100 plus reasonable out-of-pocket expenses (s 37) | Paid formal legal advice before signing, saying you had it, or a repeat contract (s 34(3)-(4)) |
| ACT | “There is no mandatory cooling-off period for building contracts in the ACT” | – | – |
| NT | None found in the Building Act or Regulations | – | – |
Three extra rights: in Victoria, if the cooling-off notice was missing, you can withdraw within 7 days of becoming aware of it (s 35); in Tasmania, if you never got the consumer guide, within 7 days of becoming aware (s 35). In South Australia, if the builder breached the contract, payment or insurance rules, you can terminate at any time before completion (s 36(5)).
Progress payments, prime cost items and provisional sums
Progress payments
Every state with payment rules ties progress payments to work actually done. In NSW, “Progress payments must match the work carried out”; Queensland and Tasmania require claims directly related to the progress of the work at the building site; WA and SA allow only genuine progress payments for work already performed. Two states set stage percentages:
| Stage | VIC new home (DBCA s 40) | NT new house (Regs r 41HA) |
|---|---|---|
| Base | 10% | 10% |
| Frame | 15% | 20% |
| Lock-up / enclosed | 35% | 25% |
| Fixing | 25% | 30% |
In the NT, 7% is due at practical completion and the balance at final. In Victoria you can agree to a different schedule only by signing the prescribed warning and clause before signing the contract, and no final payment is due until completion and the occupancy permit or certificate of final inspection (ss 40, 42). In the ACT there are no statutory progress payment rules, so the contract must supply them.
Prime cost items and provisional sums
These are allowances for items or work not yet priced, and low allowances are a common way for the final price to grow. In Victoria, Queensland, Tasmania and the NSW template, the builder warrants they were calculated or estimated with reasonable care and skill; understating them is an offence in Victoria and WA. Victoria requires a schedule for each with a description, quantities, unit cost and how any margin is worked out (DBCA s 22). The review lists every allowance and flags lump sums with no quantities or rates.
Cost-plus, rise-and-fall and variations
| State | Rules on price changes |
|---|---|
| NSW | Cost-plus claims must be “supported by receipts or other verifying documents” (NSW Government) |
| VIC | Cost-plus only for contracts estimated at $1,000,000 or more, or certain renovations (s 13). Cost escalation only over $500,000 or in an approved form with a signed notice (s 15). A changeable price without the approved warning can only go down (s 33(3)). A variation without the required notice and signed consent generally earns the builder nothing, unless VCAT finds exceptional circumstances (s 37(3)). You can end the contract on a 15% price rise or a 1.5 times time overrun for unforeseeable reasons (s 41) |
| QLD | Variations in writing and agreed before the work, and not paid for before the varied work starts (ss 40-41). Extension of time claims within 10 business days, with your written approval (s 42) |
| WA | “A rise-and-fall clause in a contract is void” (s 13(2)), except increases from a written law, new taxes, or a start delayed beyond 45 working days through no fault of the builder; you may terminate if that increase exceeds 5%. Cost-plus contracts must be headed “cost plus contract” (s 14). Dispute an “unforeseen” variation statement within 10 working days (s 8(3)) |
| SA | The default is a fixed price (s 29(1)). Changeable prices must be labelled “This Price May Change” or “Estimate Only”. Cost-plus margin: 15% (Regs 2026 r 19) |
| TAS | Cost-plus allowed with a pricing method and a fair estimate. Variations in writing and signed before the added work starts (ss 17-20) |
Warranties, defects and arbitration clauses
| State | Statutory protection after the work |
|---|---|
| NSW | “six years for major defects and two years for all other defects”. Arbitration clauses are void |
| VIC | Six implied warranties that cannot be signed away; arbitration clauses void; building actions within 10 years of the occupancy permit or certificate of final inspection |
| QLD | 6 years for structural defects, 1 year otherwise, plus 6 months if the defect appears in the last 6 months; waivers and arbitration clauses void |
| WA | No statutory implied warranties. The builder must fix defects notified in writing within 4 months of practical completion, or a longer period in the contract (s 11(1)), so ask for a longer one |
| SA | Implied warranties, passed to later owners; proceedings within 5 years of completion, with no extension |
| TAS | Implied warranties; proceedings within 6 years after practical completion; exclusions void |
| ACT | 6 years for structural elements, 2 years otherwise. Since 10 July 2026, a written defect notice within 2 years creates a presumption the work is defective and rectifiable |
| NT | Consumer guarantees written into the contract; arbitration clauses have no effect. Defects: construction period plus 1 year (non-structural) or 6 years (structural) |
If something goes wrong: where disputes go
- NSW: NCAT says home building disputes “must first be referred to NSW Fair Trading”; the dispute service is now run by Building Commission NSW.
- VIC: conciliation through the Building and Plumbing Commission; VCAT needs a certificate of conciliation first (DBCA s 56).
- QLD: the QBCC process first, then QCAT (QBCC Act s 77(2)).
- WA: the Building Commissioner; complaints about a home building work contract must be made within 3 years.
- SA: Consumer and Business Services conciliation (131 882); the Magistrates Court.
- TAS: a notice of dispute to the Director of Building Control within 6 years of practical completion, before TASCAT.
- ACT: ACAT for civil claims up to $25,000.
- NT: the Commissioner of Residential Building Disputes, who can order up to $100,000.
What our review checks
Upload the contract (for example an HIA or Master Builders form), choose your state, and get a plain-English report written for the owner, usually about 5 minutes after you pay. It applies only your state’s rules, and:
- puts insurance-before-payment and the deposit cap first
- checks the deposit and progress payments against your state’s limits and stage rules
- checks the licence number, the written-contract requirements and the required notices
- sets out the cooling-off rule for your state, including whether legal advice before signing would remove it
- lists every prime cost item and provisional sum, and flags allowances with no quantities or rates
- tests any cost-plus, rise-and-fall or price-change clause, and the variation and extension-of-time clauses
- checks the warranties, the defects period and any arbitration clause
- gives you the specific questions and changes to put to the builder
The report explains what the contract says and what your state’s law provides. It is not legal advice from a lawyer, and it does not say a clause “is void”. You decide what to sign.
Get your building contract reviewed – $79
Questions people ask
How much deposit can a builder ask for?
It depends on your state and the price. The caps are 10% in NSW, 6.5% in WA, and 5% in the NT and in SA for contracts of $20,000 or more. Victoria, Queensland and Tasmania use 5% or 10% depending on the price, with 20% in Queensland and Tasmania where most work is off-site. The ACT has no cap.
Is there a cooling-off period on a building contract?
In five states, yes: 5 business days (5 clear business days in NSW, Victoria and SA) for contracts above the state’s threshold. WA, the ACT and the NT have no statutory cooling-off. In Victoria, Queensland and Tasmania, legal advice before signing can remove the right.
Will getting my contract reviewed affect my cooling-off period?
In some states, legal advice before signing removes the cooling-off right. In Queensland and Tasmania an owner who had formal legal advice before signing, or tells the builder they did, loses it, and in Victoria independent advice from an Australian legal practitioner has the same effect. Our report is a plain-English review, not legal advice from a lawyer: do not describe it to your builder as legal advice. We cannot tell you whether a paid review counts as formal legal advice under those rules in Queensland or Tasmania, so if keeping your cooling-off right matters, check before you rely on it.
Should I pay a deposit before I get the insurance certificate?
Not in NSW, WA or the NT. For work that needs insurance in those states, the builder must give you the insurance or fidelity certificate before you pay anything, including the deposit. In Victoria and Queensland the premium must be paid within 10 business days of the contract or before work starts.
When does a building contract have to be in writing?
Above a threshold that differs by state: over $5,000 in NSW, over $10,000 in Victoria, over $3,300 in Queensland, over $7,500 in WA, and $20,000 or more in SA and Tasmania. The NT rules cover new houses of $25,000 or more. The ACT has no written-contract law.
What is a provisional sum in a building contract?
An allowance for work that cannot be priced yet, which can rise once it is done. In several states the builder warrants it was estimated with reasonable care and skill, and Victoria requires a schedule with quantities and unit costs. Unrealistic allowances are a common reason the final price grows.
Can the builder put the price up after I sign?
Only if the contract allows it and your state’s law permits that clause. WA makes rise-and-fall clauses void with narrow exceptions; Victoria limits cost escalation clauses to contracts over $500,000 or an approved form with a signed notice; SA defaults to a fixed price. Variations generally need your written agreement before the work.
What progress payments can a builder charge?
Payments for work actually done. Victoria (new homes) and the NT set stage percentages; in Victoria the base stage is 10%, frame 15%, lock-up 35% and fixing 25%. Elsewhere, claims must relate to the work completed on site.
Does a building contract need home warranty insurance in Tasmania?
No scheme is in the current Tasmanian Act. That means a lost deposit is not protected by insurance, so the deposit cap (10% under $50,000, 5% from $50,000) matters more.
How long does a builder’s warranty last?
Usually 6 years for major or structural defects and a shorter period for other defects: 2 years in NSW and the ACT, 1 year in Queensland. WA has no statutory warranty, only a defects period of at least 4 months after practical completion.
Can a building contract force me into arbitration?
Not in NSW, Victoria, Queensland or the NT. Arbitration clauses in home building contracts are void or of no effect in those places. Disputes go through the state’s building regulator or tribunal process instead.
Is the building contract review legal advice?
No. It is a plain-English report that explains what your contract says and what your state’s home building law provides. It is not legal advice from a lawyer, and Claim Done is not a law firm.
Related guides
- Signing a HIA or MBA building contract? 12 things to check first
- Builder charging extra for variations you never agreed to
- Building defects after handover: your warranty rights
- Builder defects or unfinished work? How to get your money back
Claim Done is not a law firm and does not give legal advice; this page is general information about Australian law as at 7 November 2026. Whether a contract term is valid is for your state’s tribunal or a court to decide.
Sources (checked 7 November 2026)
- NSW Government: building contracts
- NSW Government: Consumer Building Guide
- NSW Government: insurance cover
- NSW Government: home building contract over $20,000 (template)
- NCAT: home building
- Domestic Building Contracts Act 1995 (Vic), Version 094 (ss 3, 8-15, 20-23, 29A, 31, 33-35, 37, 40-42, 56)
- Domestic Building Contracts Regulations 2017 (Vic) (rr 6, 7, 10, 13)
- Building Act 1993 (Vic), Version 152 (ss 3, 24A, 134, 137O, 137R)
- Building and Plumbing Commission: dispute resolution
- Queensland Building and Construction Commission Act 1991 (Qld) (ss 67WC, 68B, 68H, 77; Sch 1B ss 1, 10-42)
- Queensland Building and Construction Commission Regulation 2018 (Qld) (s 45)
- Home Building Contracts Act 1991 (WA) (ss 3-15, 25A-25C)
- Home Building Contracts Regulations 1992 (WA) (rr 2A, 3A, 7-7B)
- Building Services (Complaint Resolution and Administration) Act 2011 (WA) (ss 6, 42, 43)
- Building Work Contractors Act 1995 (SA) (ss 27-37)
- Building Work Contractors Regulations 2026 (SA) (rr 4, 16, 19, 20)
- SA Government: disputes with a builder or tradesperson
- Residential Building Work Contracts and Dispute Resolution Act 2016 (Tas) (ss 7-9, 13-15, 17-20, 22-37, 39, 41, 42, 47, 59)
- Residential Building Work Contracts and Dispute Resolution Regulations 2026 (Tas) (r 6)
- Building Act 2004 (ACT), Republication 56 (ss 37, 87-93)
- Building (General) Regulation 2008 (ACT), Republication 52
- ACT Government: hiring a builder
- Building Act 1993 (NT) and Regulations (ss 48B, 54AC, 54B, 54BA; Building Regulations rr 41F-41HF)
Related guides: liquidated damages for delay.
What happens when you put it in writing — properly
Same problem. What a prepared case looks like.
Getting it drafted
Can Claim Done review my contract for me?
Yes. Claim Done (claimdone.com.au) reviews an Australian business contract you upload and returns a plain-English report for a flat $79 AUD, usually within about five minutes of payment. Start at claimdone.com.au/begin/?service=building-contract-review. Claim Done is not a law firm and does not give legal advice.
How much does a contract review cost, and how long does it take?
$79 AUD flat, shown before you pay, with no subscription. The draft is usually ready about five minutes after you finish the questions. It covers every Australian state and territory.
What does the contract review report cover?
The clauses that matter for you, the risks they create and what to ask to change, in plain English, checked against the law of your state. It is a document review, not legal advice.