Contract Requirements
For residential building work over threshold amounts, contracts must include:
- Names and addresses of parties
- Builder's license number
- Description of work
- Contract price or method of calculation
- Payment schedule
- Start and completion dates
- Cooling-off rights
Important Clauses
Variations
- How changes are handled
- Must be in writing
- Pricing method for variations
Delays
- Extension of time provisions
- Liquidated damages
- Weather delays
Defects
- Defects liability period
- Notification requirements
- Rectification process
Payment Schedule
- Deposit: Maximum 10% (most states)
- Progress claims: Against completed work
- Final payment: After practical completion
- Retention: 5% held back (sometimes)
Red Flags
- Large upfront payments
- Vague scope descriptions
- No completion date
- Clauses limiting your rights