Victoria Major Domestic Building Contract: When Does the $10,000 Threshold Apply?

Figures checked 1 October 2026: under Consumer Affairs Victoria’s owner-builder guidance, dated 30 June 2025, domestic building work costing more than $10,000 requires a written contract, even if the owner signed the building permit as owner-builder. Consumer Affairs Victoria’s major-contract guidance, dated 8 July 2025, sets the threshold at $10,000 and requires the client to receive the Domestic Building Consumer Guide before signing; contracts over $10,000 must contain clear advice about a five-day cooling-off period, while work over $16,000 on the client’s property requires the certificate of currency for the applicable domestic building insurance.

When exactly does the $10,000 threshold apply?

The Consumer Affairs Victoria wording uses more than $10,000, rather than $10,000 or more. Its guidance dated 30 June 2025 records that the threshold increased from $5,000 to $10,000 on 1 August 2017; the corresponding threshold for permitted cost-plus contracts increased from $500,000 to $1 million.

A contract priced at exactly $10,000 is not described as “more than $10,000” in the cited wording. However, that wording does not resolve how the values of associated work packages should be considered, so it should not be treated as a complete scope or exemption ruling.

Which associated work counts, and which standalone trades are exempt?

The cited Consumer Affairs Victoria guidance does not identify every associated component, explain how separate associated-work values are aggregated, or provide a complete list of exempt standalone trades. It therefore does not support a reliable trade-by-trade conclusion such as treating every separately invoiced trade as automatically outside the threshold.

The specific rule that can be stated is that builders must confirm BPC registration before offering a contract where the work is worth more than $10,000, or where it involves restumping, reblocking, demolishing or removing a home regardless of value. That registration requirement should not be confused with a statement that a written major contract is required for those projects at every price.

Signing a building permit as owner-builder also does not remove the written-contract requirement for domestic building work over $10,000. Consumer Affairs Victoria warns against a builder or tradesperson asking the owner to sign as owner-builder while the tradesperson will do the work: the owner-builder may be unregistered or trying to avoid legal responsibilities, creating risk and unexpected costs.

What must the major contract contain?

The contract must be in writing, use clear English and set out all its terms in full. In practical terms, it should address:

• detailed descriptions of the work;
• the names and addresses of both parties;
• the builder’s registration number exactly as it appears on the registration certificate;
• the contract price, deposit and progress payments as required by law;
• the effective date, meaning the date on which both parties signed;
• definitions of words and key phrases;
• implied warranties;
• the Approved checklist;
• clear advice about the five-day cooling-off period; and
• the Domestic Building Consumer Guide being given to the client before signature.

When applicable, the contract should also include plans and specifications containing enough information to obtain a building permit. It should state the start and finish dates, allowances for delays, and the days allowed for foreseeable delays and inclement weather.

If the start date is unknown, the contract must explain how it will be determined, state that everything reasonably possible will be done to start work promptly, and give the number of days needed to finish after work starts.

What should be checked before the contract is offered?

Before offering the contract, the builder should complete the following checks:

• Registration: Confirm BPC registration where the contract exceeds $10,000 or the work involves restumping, reblocking, demolition or removal of a home, regardless of value.
• Site suitability: Confirm the site is suitable for the works and satisfy themselves that the foundation information is accurate.
• Permits: Have the required building or planning permits, or state in the contract how they will be obtained.
• Scope: Clearly define the work in the contract, plans, specifications and relevant documents, including the client’s special requirements and finishes.
• Unknown fittings: Identify unspecified fixtures and fittings or unknown prices clearly as provisional sum or prime cost items.
• Price and payments: State the price, deposit and progress payments clearly and ensure they accord with the law.
• Variations and access: Ensure the client understands the variation process and what constitutes reasonable access to the site.
• Timing: State start and finish dates, delay procedures and any liquidated damages clearly, along with the circumstances in which either party may end the contract.
• Insurance: For work over $16,000, provide the client with the certificate of currency for the applicable domestic building insurance.
• Consumer paperwork: Give the client the Domestic Building Consumer Guide before signature and point out the five-day cooling-off clause.

Which costs and clauses should be dealt with before signing?

Consumer Affairs Victoria’s major-contract guidance dated 8 July 2025 says the following costs should be included in the contract price rather than added later as extras:

• the building fee, which may or may not include mandatory building surveyor inspection costs and may vary between companies;
• planning permit fees if the council requires a planning permit;
• the local council lodgement fee;
• any crossing deposit or asset protection fee, which is refundable at the end of the project if no damage occurred to council property;
• the non-refundable council inspection fee;
• GST; and
• government levy charges when the contracted cost of the work is more than $10,000.

The contract must not contain:

• a compulsory arbitration clause;
• a caveat concerning an existing right or interest in the building-site land title; or
• a waiver or negation of implied warranties.

A cost escalation or “rise and fall” clause is permitted only where the contract price is more than $500,000 and the Director of Consumer Affairs Victoria approves it. The cited guidance states that the Director has not approved any cost escalation clauses, and likely increases caused by inflation, wage increases and similar costs must be included in the contract price.

A cost-plus method cannot be used for a contract below $1 million; guidance identifies $1 million as the threshold above which cost-plus contracts are permitted. The stated exception is investigative work needed to establish the contract price when renovating an existing house. The builder must still provide a fair and reasonable estimate of the total amount likely to be received and then enter a fixed-price contract for the remaining work.

The expression “practical completion” should be removed and replaced with “complete in accordance with the plans and specifications”.

Should smaller jobs still be put in writing?

Yes. A job that does not cross the major-contract threshold may not attract the same prescribed contract requirements, but a handshake or vague quote leaves too much room for disagreement about scope, price, GST, payment, dates, variations, permits and insurance.

For smaller work, both parties should still record the agreed scope, materials and finishes, price and payment schedule, start and finish dates, responsibility for permits, variation process, site access and any insurance requirements in writing. That is practical risk management, not a claim that every smaller job is subject to the major-contract rules.

How should current rules and insurance be checked?

The cited Consumer Affairs Victoria pages record that the Domestic Building Contracts Amendment Bill 2025 passed the Victorian Parliament on 11 September 2025. The material used here does not provide a commencement date for the Bill, so passage alone should not be treated as proof that a new rule has commenced. Check the regulator’s current guidance before relying on a threshold, exemption or cooling-off right.

Contract compliance and insurance are separate checks. For any public liability or other policy, read the Product Disclosure Statement (PDS), including its conditions, exclusions and limits, and ask the insurer or broker to confirm the relevant cover in writing.

This is general information, not financial or legal advice. Check the current Consumer Affairs Victoria page and confirm registration with the BPC before signing.

Sources

• Preparing a major domestic building contract – Consumer Affairs Victoria
• Owner builders – Consumer Affairs Victoria

FAQ

Does a contract priced at exactly $10,000 have to be a major domestic building contract?

The cited Consumer Affairs Victoria wording applies to domestic building work more than $10,000, not work costing exactly $10,000. Because the associated-work and exemption details are incomplete in the cited material, an exactly $10,000 project should still be checked with the regulator. A written contract remains sensible even where the major-contract threshold does not apply.

Are licensed electricians, plumbers or asbestos removalists automatically exempt?

Consumer Affairs Victoria recommends always using licensed electricians, plumbers and asbestos removalists where asbestos removal is required. That licensing recommendation does not establish that their work is automatically exempt from the major-contract rules. The cited material does not provide a complete list of exempt standalone trades.

What should be checked during the five-day cooling-off period?

Read the Domestic Building Consumer Guide, contract and cooling-off clause before signing and ask about any unclear price, scope, variation, payment or timing issue. The cited material does not set out the full cancellation procedure or notice method, so follow the contract’s clause and the regulator’s current guidance rather than assuming how cancellation must be made.

Does signing as owner-builder remove the written-contract requirement?

No. Even if the owner signed the building permit as owner-builder, the cited guidance says a written contract is required for domestic building work more than $10,000. Signing as owner-builder while a builder or tradesperson performs the work can also shift insurance, legal and financial responsibilities onto the owner.

Does holding public liability insurance prove that the building contract is compliant?

No. Insurance and contract compliance are separate matters. Check the contract, registration, consumer guide and cooling-off clause independently, then read the relevant policy’s PDS and confirm the cover with the insurer or broker.