Do I Need a Building or Renovation Contract?

On the QBCC website, you can download free and fully compliant contracts for new home construction, renovations, repairs, extensions, small building projects and demolition of residential premises.

If you are doing domestic building work of over $3,300 you will definitely need a contract but even for small building projects under $3,300, it is recommended to have a contract or an agreement in place. If you are not sure what should be in your building or renovation contract then read on. There are different types of QBCC contracts:

QBCC contracts

You don’t have to use a QBCC contract. There are other contracts that are issued by industry associations, but you will need to make sure that they comply with Queensland legislation. Unfortunately, for those wanting to use an interstate contract they usually aren’t compliant with QBCC legislation. You could also prepare your own contract but you will need to get legal advice first.

Paying for Work

It is advised not to pay ahead of time for work that might not get done. Sticking to the payment schedule outlined in your contract will protect you in situations where your builder/contractor is unable to complete the job. The legalities around how much you should pay and when the payments are due are very specific. Deposits are generally not more than 5% of the total contract price (where the building work is $20,000 and more). The number and timing of Progress payments (for jobs more than $3,300) can be negotiated between you and your builder/contractor. However, all progress payments have to relate to how much work was carried out on site. As a rule of thumb, the contractor can’t claim more than 50% of the contract price (including deposit) before at least 50% of the work has been done.

You can find more information here:

By | 2017-10-18T18:09:25+00:00 May 15th, 2017|Categories: Good Building Practice, Residential|Tags: , , , |