Building contracts: what must be in writing, and your cooling-off period

A written contract protects you and the builder. In Queensland, the law sets out when you need one and what it must include.

When do you need a written building contract?

Home building work priced over $3,300 needs a written contract. The price includes labour, materials and GST.

• $3,301 to $19,999: a Level 1 contract, the simpler kind, often used for renovations and repairs.
• $20,000 or more: a Level 2 contract. The builder must also give you QBCC’s Consumer Building Guide before you sign.

QBCC publishes free contracts that builders can use.

How much deposit can a builder ask for?

• $3,300 or less: no more than 20%
• $3,301 to $19,999: no more than 10%
• $20,000 or more: no more than 5%

The one exception is a job where more than half the price is custom work made off site, such as made-to-measure cabinets or a shed kit. Then the deposit can be up to 20%.

If a builder asks for more, ask why, and don’t pay until you are sure.

Home warranty insurance

For home building work over $3,300, the builder must pay for home warranty insurance. It must be paid within 10 business days of signing, or before work starts, whichever comes first. Ask for proof.

How long is the cooling-off period?

Contracts over $3,300 must tell you about your right to cool off. You have 5 business days to change your mind. The days start the day after you receive a signed copy of the whole contract.

The cooling-off right doesn’t apply if you had a previous contract with the builder on much the same terms, or if a lawyer advised you on the contract before you signed.

What to check before you sign

1. The builder holds the right licence class. Search them on this site.
2. The price, what it includes and what it leaves out.
3. Start and finish dates, and what happens if the job runs late.
4. How changes are handled. See our guide to variations.
5. The deposit is within the cap above.
6. When each progress payment is due, and what must be finished first.