Building Contract

Parties and Property Details

Builder Details

You must enter the full legal name of the contracting entity. If you operate as a sole trader, use your personal name exactly as it appears on your builder's licence. For companies or trusts, use the registered business name. Never use a trading name alone in this section.

• Full Legal Name: [Insert Builder Name]
• Australian Business Number (ABN): [Insert ABN]
• Builder’s Licence Number: [Insert Licence Number]
• Registered Office Address: [Insert Street Address]
• Postal Address (if different): [Insert PO Box]
• Email Address: [Insert Email]
• Telephone Number: [Insert Phone]

Your ABN and licence number are mandatory. Under the Australian Consumer Law and various state-based Building Acts, displaying this information identifies the legal entity responsible for the work. This ensures the owner knows exactly who they are hiring and who holds the duty of care.

Owner Details

The owner listed on the contract must match the name on the Certificate of Title for the land. If there are multiple owners, list every individual. If an owner is a company, list the ACN. Using the correct legal names is critical for the validity of the agreement and for insurance purposes.

• Full Legal Name(s): [Insert Owner Name(s)]
• Address for Service: [Insert Street Address]
• Postal Address (if different): [Insert PO Box]
• Email Address: [Insert Email]
• Telephone Number: [Insert Phone]

Property and Site Details

This section defines the specific location where the work will occur. You must provide the full street address. Do not rely on local nicknames or landmarks.

• Site Address: [Insert Full Street Address]
• Lot Number: [Insert Lot Number]
• Deposited Plan (DP) Number: [Insert DP Number]
• Local Government Area (Council): [Insert Council Name]

Including the Lot and DP numbers is standard practice under regulations such as the Queensland Building and Construction Commission Act 1991 and the Victorian Building Act 1993. These details remove any doubt regarding the land subject to the contract.

You should verify these details against the title search or council records before signing. In some jurisdictions, specific contract forms require the plan number to be valid. Inaccurate property details can cause issues with home warranty insurance claims and dispute resolution processes. Ensure the site address matches the development application or planning permit if one exists.

1. Scope of Works

1.1 General Description The Builder agrees to carry out and complete the building work described in this Contract and the Specification attached. The work will be performed in a proper and workmanlike manner using new and suitable materials. The Builder must comply with all relevant Australian Standards, the National Construction Code (NCC), and the Building Code of Australia (BCA). All work must meet the tolerances set out in AS 4122-2000 (General Conditions of Contract) where specific tolerances are not otherwise detailed.

1.2 Specific Inclusions The contract price covers all labour, materials, plant, and equipment necessary to complete the following specific tasks. This list takes precedence over any general descriptions. Items marked with a [ ] are selected options. Tick the box and write in the specific details where indicated.

• Site Preparation: Clearing the site, removing vegetation and debris to a depth of [ ] mm, and levelling the building pad.
• Demolition: Safe removal of existing structures identified in the plans, including disposal of waste to a licensed facility.
• Substructure: Excavation for footings and piers, supply and installation of concrete to the specified strength grade (e.g., N25/N32), and steel reinforcement as per engineer’s details.
• Lock-up Stage: Supply and install timber or steel framing, external cladding, windows, and external doors. Includes all flashings and weatherproofing to meet AS 2047-2014 (Windows and Doors).
• Internal Linings: Installation of plasterboard to walls and ceilings, cornices, and setting.
• Fixing Stage: Supply and install internal doors, architraves, skirtings, and built-in joinery specified in the schedule.
• Floor Coverings: Supply and installation of [ ] tiles, [ ] carpet, or [ ] timber flooring as per the schedule.
• Services: rough-in and fit-off of electrical, plumbing, and drainage by licensed contractors.
• Painting: Application of [ ] coats of low sheen acrylic to walls and [ ] coats of enamel to trims using [ ] brand paint.
• Landscaping: Supply and spread topsoil to [ ] mm depth, supply and lay turf (approx. [ ] sqm), and plant specified garden species.

1.3 Exclusions The contract price does not include the following items unless expressly listed in the Inclusions section or subsequently agreed to in writing. The Owner must arrange and pay for these items separately or pay the Builder a variation fee to undertake them.

• Any underground services not shown on the provided plans or dial-before-you-dig diagrams.
• Application for specific local council permits other than the Building Permit (e.g., planning permits, permits for demolishing regulated trees, or vehicle crossovers).
• Removal of asbestos or hazardous materials discovered during demolition.
• Soil testing, surveying, or engineering reports required prior to construction commencement.
• Site connection fees charged by utility providers (electricity, gas, water, telecommunications).
• Driveways, concrete paths, retaining walls, and fences not specifically detailed in the building plans.
• Air conditioning, solar panels, and window treatments (blinds and curtains).
• Supply of appliances (refrigerator, dishwasher, washing machine) unless specified in a supply and install contract.
• Cleaning and waste removal not directly related to the Builder's construction work (e.g., final builder’s clean required for handover).

Contract Price

The total Contract Price for the carrying out of the Works is $[INSERT CONTRACT PRICE].

This amount includes Goods and Services Tax (GST) at the rate required by the A New Tax System (Goods and Services Tax) Act 1999 (Cth). The builder warrants that this price complies with the requirements of the Australian Competition and Consumer Act 2010 (Cth) regarding unfair contract terms and consumer guarantees.

Nature of the Price

The parties agree that the Contract Price is a [FIXED PRICE / ESTIMATE].

[IF FIXED PRICE DELETE THIS PARAGRAPH] If the price is a Fixed Price, the builder agrees to complete the Works for this amount unless varied by a valid variation issued in accordance with this contract. Changes to legislation or unforeseen site conditions may alter this price, and the builder will notify the owner of any such changes in writing.

[IF ESTIMATE DELETE THIS PARAGRAPH] If the price is an Estimate, the builder has calculated the cost based on current labour and material rates. The final price may vary. The builder will provide the owner with reasonable notice of any price increases and the reasons for them before incurring the additional cost.

Provisional Sums

The Contract Price includes the following Provisional Sums. A Provisional Sum is an estimate of the cost of work for which details, such as the full design or specification, are not known at the time of signing this contract. These items are an allowance only and will be adjusted based on the actual cost incurred by the builder.

• [Provisional Sum Item 1]: $[INSERT AMOUNT]
• [Provisional Sum Item 2]: $[INSERT AMOUNT]
• [Provisional Sum Item 3]: $[INSERT AMOUNT]

Any difference between the actual cost and the Provisional Sum allowance will be added to or deducted from the Contract Price. The builder will keep records and receipts for these items and make them available to the owner on request.

Prime Cost Items

The Contract Price includes the following Prime Cost (PC) Items. A PC Item is a monetary allowance for the supply of necessary items that the owner will select or that require specific selection before the builder can purchase them.

• [PC Item 1 - e.g. Kitchen Tapware]: $[INSERT AMOUNT]
• [PC Item 2 - e.g. Bathroom Tiles]: $[INSERT AMOUNT]

If the actual cost of the selected item is higher than the allowance, the builder will add the difference to the Contract Price. If the cost is lower, the builder will deduct the difference. Any adjustments will include the applicable margin on the actual cost as outlined in the Schedule of Items.

All adjustments to Provisional Sums and Prime Cost Items will be listed in the progress claims or the final account. This process aligns with the security of payment laws in the relevant state or territory, such as the Building Industry Security of Payment Act 1999 (NSW) or the Building Industry Fairness (Security of Payment) Act 2017 (QLD).

4. Payment Schedule

The contract price is payable in stages. Work at each stage must be completed to a professional standard and approved by the builder before an invoice is issued for that stage.

Deposit Payment A deposit is required to secure the booking and cover preliminary costs such as permits and materials ordering. The deposit amount is strictly limited by Australian consumer law. Under section 45 of the Domestic Building Contracts Act 1995 (Victoria) and similar provisions in other jurisdictions like the Home Building Act 1989 (NSW), the maximum deposit is 10 percent of the total contract price. For work valued over $20,000, any request for a deposit higher than 10 percent is unlawful. This deposit is deducted from the final progress payment.

Stage 1: Base Stage This payment is due upon completion of the base stage work. This includes site excavation, pouring of concrete footings, and installation of the sub-floor system. This milestone is critical as it establishes the foundation of the structure. Ensure the concrete has cured and levels have been checked against the plans before requesting this payment.

Stage 2: Frame Stage Payment becomes due when the frame is complete. This means the flooring, wall, and roof framing are erected and fixed in position. This stage must pass a relevant framing inspection by a private certifier or local council building surveyor. Ensure all bracing and tie-downs are installed as per the engineer’s specifications and the National Construction Code requirements before invoicing.

Stage 3: Lock-Up Stage This payment covers the work required to make the building secure. The lock-up stage is reached when the property can be securely locked. This includes installation of external doors and windows, and the fixing of external cladding or brickwork. Roof covering must also be complete to ensure the building is weatherproof.

Stage 4: Fixing Stage This payment is due when internal fitting-out is substantially complete. This includes installation of internal wall linings, architraves, skirtings, doors, built-in cupboards, and shelving. Wet areas must be prepared, and stairs installed (where applicable). This stage brings the building to a point where it is ready for final finishes.

Stage 5: Practical Completion The final balance is payable upon Practical Completion. This is when all work described in the contract is finished, except for minor defects. The home must be clean, tidy, and safe for occupation. All services including electricity, gas, and water must be connected and operational. You must provide the owner with keys, manuals, and certificates of compliance for electrical and plumbing works prior to receiving this final payment.

Any changes to the scope of works, design, or specifications outlined in the original contract are considered variations. You must request any variation in writing via email or letter. This request must describe the work you want added, removed, or changed clearly. We will not proceed with any variation until we receive this written instruction.

Once we receive your request, we will assess the impact on the work and provide a written quote. This quote will detail the adjustment to the contract price and any extension of time required to complete the project. We prepare this quote based on current rates and the cost of materials. You must approve this quote in writing before we start the variation work. If you approve the quote verbally, we require confirmation via email or text message to ensure we have an accurate record.

We manage these variations strictly in accordance with the Home Building Act 1989 (NSW) for residential projects, or equivalent consumer protection laws in other states and territories. These regulations require that all variations are documented and agreed upon to protect both parties. The written quote serves as the necessary evidence of this agreement. It ensures you understand the financial implications before we incur costs.

Where the variation affects structural elements or compliance with the National Construction Code (NCC), we may need to update plans or seek new certifications. Any costs associated with updating plans, engineering certificates, or building approvals are included in the variation quote. We will not commence work that requires new approvals until those approvals are secured.

If we proceed with a variation based on your verbal instruction without immediate written confirmation, we reserve the right to charge for the work based on the actual time and materials incurred. However, to avoid disputes and keep accounts clear, we strongly adhere to the written process.

If we find necessary variations during construction that are required for compliance with NCC standards or safe work practices, we will notify you immediately in writing. We will treat these as mandatory variations and provide a quote for the work required. These situations are rare, and we will always explain why the change is necessary before proceeding.

All approved variations are added to the final contract price. Payment for variation work usually falls due upon completion of that specific part of the work, unless we agree otherwise in writing. We will issue an updated progress claim or a separate invoice reflecting the agreed variation amount. This ensures your progress payments accurately reflect the work completed on site.

Signatures and Execution

This part of the agreement formalises the contract. You must ensure everyone signs and dates the document correctly. The way you sign depends on your business structure and the state or territory where the project is located.

Who Must Sign

For the contract to be legally binding, the builder or their authorised representative and the property owner must sign. If the owner is a company, a director must sign. If you operate as a sole trader or partnership, sign personally. If you run the works through a company, an authorised director must sign on behalf of the company.

Witnessing Requirements

Rules regarding witnesses vary by state. You must check the specific regulations for your location.

• New South Wales: Under the Conveyancing Act 1919 (NSW), a witness must watch the signatory sign and then sign themselves. The witness must be over 18 years old and not be a party to the contract.
• Victoria: The Building Act 1993 (Vic) sets out domestic building contract requirements. While witnessing is standard for major domestic works, always confirm if the specific type of job requires a witness for the domestic building insurance or contract validity.
• Queensland: The Queensland Building and Construction Commission Act 1991 (QBCC Act) governs these contracts. A witness is required to watch the owner sign and then sign and print their full name.
• Western Australia: A witness must sign and print their name and address.
• South Australia, Tasmania, Australian Capital Territory, and Northern Territory: Refer to local variations of the Building Work Contractors Act or similar legislation. It is safest practice to use a witness for all residential building work to avoid disputes about capacity or duress.

Dates

Ensure the date of signing is recorded next to every signature. This date is . It often triggers the cooling-off period, starts the timeline for construction, or activates insurance requirements.

Authority to Sign

If someone other than the owner signs, such as a tenant or a relative, you must verify they have legal authority to enter into the contract. If they do not, you may not be able to enforce the agreement or claim payment.

Execution by Company

If a company is a party to the contract, the Corporations Act 2001 (Cth) applies. Generally, two directors or one director and one company secretary must sign. Alternatively, a single director can sign in the presence of a witness who attests to their signature. Ensure the company’s full name and ACN appear on the signature line.

Do not start work until all parties have signed this section and you have returned a fully executed copy to the owner. Commencing work without a signed contract can void your insurance and limit your rights under security of payment laws.