The Importance & Legal Requirement to Have a Written Building Contract
Note: Most of the following information was taken from the QBCC website and was current at the time of publishing.
This is general information only and not legal advise.
It can be an offence not to have a written contract.
Whether you’re building a house or carrying out a renovation you need a written agreement.
Domestic building work over $3,300 requires a written contract by law.
Examples of domestic building work include:
- building a new house or duplex
- building a shed, garage, carport, retaining wall, driveway, fence, workshop, swimming pool or spa
- removing or re-siting a dwelling intended to be used as a residence
- renovating, extending, altering, improving or repairing a home, duplex or unit
- refitting a kitchen or bathroom,
- painting and decorating
- landscaping, paving, site work, etc.
As you can see from the QBCC information above its important to have a written contract.
We often come across clients who tell us about unlicensed contractors and the things they try to get away with.
- No contract for work over $3300 is illegal
- Cash up front is illegal
- More than 10% deposit for small building works is illegal (3300 to 20000)
- If the contractor wants cash, you have to consider they are not paying GST
- No contract likely means no “Home Warranty” Insurance will be paid
- If you dont have home warranty insurance then you have no warranty cover for your home
- Does your contractor have contractors insurance ?
- If there is no contractors insurance certificate your home may not be insured during construction
We find a lot of people don’t realise that even simple things like painting are considered building work.
A professional contractor will always require a written contract
You have to ask your self how dodgy are those contractors who don’t want to use a written contract and what are they trying to get away with ?