Domestic Building Contracts Act 1995 (Vic) — warranties
Vic domestic building contracts include statutory warranties + insurance requirements.
Who must comply
Registered domestic builders in Victoria contracting with home owners, including for associated work such as landscaping, paving, driveways, fencing, garages, pools and site work carried out with the construction or renovation of a home. Single-trade jobs (for example plastering, tiling, electrical, painting or plumbing alone) do not need a major domestic building contract. Reblocking, restumping, demolition or removal of a home require a registered builder whatever the value.
What triggers it
Agreeing to carry out domestic building work on a Victorian home involving more than one trade and worth more than $10,000; for insurance, work over $16,000.
When due
Contract signed before any work starts; certificate of currency for domestic building insurance given before the owner pays the deposit; extension-of-time claims within 15 business days after a delay ends; progress payments only as each stage is completed.
Evidence required
Signed major domestic building contract (the free Consumer Affairs Victoria model contract for new homes can be used); builder registration with the Building and Plumbing Commission; domestic building insurance certificate of currency; deposit and progress-payment records within the statutory limits; written variation records; extension-of-time claims stating the reason and length of delay.
Max penalty
Penalties for breaching the contract, deposit and insurance requirements are set in the Domestic Building Contracts Act 1995 (Vic) and are not restated here. Consumer Affairs Victoria advises owners not to pay any deposit until the builder provides the insurance certificate of currency.
Who must comply with this? The applicability test by industry, business structure and size.
Summary
The Domestic Building Contracts Act 1995 (Vic) sets the essential requirements for contracts to build, renovate, extend, repair, demolish or remove a home in Victoria. Where work involves more than one trade and is worth more than $10,000, a written major domestic building contract must be in place before work starts, and only a registered builder can enter into one. Domestic building insurance is required for work over $16,000 and protects the owner if the builder dies, becomes insolvent or disappears. The builder must give the owner a copy of the contract signed by both parties and enough time to have it reviewed, cannot take a deposit above 10 per cent (contracts under $20,000) or 5 per cent ($20,000 or more), and may claim progress payments only for completed stages. The Domestic Building Contracts Amendment Bill 2025 passed on 11 September 2025.
Enforced by
Topics
Related
- NSWHome Building Compensation Fund (NSW)NSW residential building work >$20,000 requires HBCF insurance.
- VICMaintain VBA registration as builder / draftsperson / surveyorVIC building practitioners must hold current registration + appropriate insurance.
- VICComply with Residential Tenancies Act 1997 (VIC)VIC RTA 1997 (significantly amended 2021) — minimum standards, pets, no-fault terminations reformed.
- VICRegister for VIC portable LSL (construction)Construction industry employers in VIC must register with CoINVEST and pay quarterly LSL levies.
- VICUnderquoting prohibition (Vic Estate Agents Act 1980)Vic real estate agents must not underquote a property sale price.
- CWLTHDesign and Distribution Obligations (DDO) — RG 274Issuers + distributors of retail financial products bound by DDO from 5 October 2021.
Frequently asked questions
- Who must comply with Domestic Building Contracts Act 1995 (Vic) — warranties?
- Registered domestic builders in Victoria contracting with home owners, including for associated work such as landscaping, paving, driveways, fencing, garages, pools and site work carried out with the construction or renovation of a home. Single-trade jobs (for example plastering, tiling, electrical, painting or plumbing alone) do not need a major domestic building contract. Reblocking, restumping, demolition or removal of a home require a registered builder whatever the value.
- What triggers Domestic Building Contracts Act 1995 (Vic) — warranties?
- Agreeing to carry out domestic building work on a Victorian home involving more than one trade and worth more than $10,000; for insurance, work over $16,000.
- When is Domestic Building Contracts Act 1995 (Vic) — warranties due?
- Contract signed before any work starts; certificate of currency for domestic building insurance given before the owner pays the deposit; extension-of-time claims within 15 business days after a delay ends; progress payments only as each stage is completed.
- What is the maximum penalty for Domestic Building Contracts Act 1995 (Vic) — warranties?
- Penalties for breaching the contract, deposit and insurance requirements are set in the Domestic Building Contracts Act 1995 (Vic) and are not restated here. Consumer Affairs Victoria advises owners not to pay any deposit until the builder provides the insurance certificate of currency.
- What evidence is required for Domestic Building Contracts Act 1995 (Vic) — warranties?
- Signed major domestic building contract (the free Consumer Affairs Victoria model contract for new homes can be used); builder registration with the Building and Plumbing Commission; domestic building insurance certificate of currency; deposit and progress-payment records within the statutory limits; written variation records; extension-of-time claims stating the reason and length of delay.
Source: https://www.consumer.vic.gov.au/housing/building-and-renovating/plan-and-manage-your-building-project/contracts. Rules Mate is not a law firm. Always verify against the live regulator source before acting.