What Is a Written Contract?
A written contract for building work is a legally binding document that sets out the terms and conditions of the building project, including the scope of work, contract price, payment schedule, start and completion dates, and the rights and obligations of both the homeowner and the builder. In most Australian states, a written contract is legally required for residential building work above a specified value.
What a Contract Must Include
While requirements vary by state, most jurisdictions require domestic building contracts to contain:
- Full names and addresses of the builder and homeowner
- Builder’s licence number and insurance details
- Detailed scope of work — plans, specifications, and any allowances
- Contract price — either fixed price or cost-plus with a maximum
- Payment schedule — deposit amount and progress payment stages
- Start date and completion date (or estimated timeframe)
- Cooling-off period notice — informing the homeowner of their right to withdraw
- Dispute resolution clause — process for handling disagreements
- Warranties — reference to statutory warranties that apply
- Variations process — how changes to scope or price are handled
When a Written Contract Is Required
| State/Territory | Contract Required For Work Over | Legislation |
|---|---|---|
| QLD | $3,300 | QBCC Act |
| NSW | $5,000 | Home Building Act 1989 |
| VIC | $10,000 | Domestic Building Contracts Act 1995 |
| WA | $7,500 | Home Building Contracts Act 1991 |
| SA | $12,000 | Building Work Contractors Act 1995 |
| TAS | $20,000 | Building Act 2016 |
| ACT | $12,000 | Building Act 2004 |
How It Relates to Licence Verification
A licensed builder is legally obligated to provide a compliant written contract that includes all required terms and consumer protections. An unlicensed builder may provide no contract at all, or one that lacks the statutory protections you are entitled to. Use TradieVerify to verify your builder’s licence before signing anything — it is your first line of defence in ensuring the contractual relationship is legitimate and enforceable.