Contracts
HIA, MBA, AS 4000, AS 4902, plain-English contracting fundamentals, variations, progress claims, retentions, deeds.
116 entries
Abandonment of Residential Building Contracts in Australia
When a builder stops work and never returns, what counts as abandonment in AU residential contracts. Abandonment vs repudiation vs frustration and the owner remedies.
Adjudication Process Across Australia: How Construction Payment Disputes Get Decided
A practical walk-through of the adjudication process under Security of Payment laws in NSW, VIC, QLD, WA and SA. Payment claim, payment schedule, application, determination, enforcement.
Adjudication Process for Payment Claims in Australian Construction
Adjudication is the rapid statutory dispute mechanism under the various state Security of Payment Acts. This entry explains the end-to-end flow used across Australia: payment claim, payment
Cost Plus Contracts In AU Residential Construction: Common Disputes
Cost plus residential contracts produce a predictable set of disputes: overhead rate, justification of costs, audit rights and what counts as the cost. Where the lines sit under AU law.
Cost Plus vs Fixed Price Building Contracts in Australia
How fixed price and cost plus residential building contracts allocate risk in AU, and the statutory limits on cost plus under state home building law.
Delay Claims for Builders in Australia
How EOT claims, delay damages, concurrent delay and notice provisions work in AU residential building contracts and the standard QBCC notice windows.
Design and Construct Contracts in Australian Residential Building
Design and construct is a delivery model where one builder takes responsibility for both design and construction. In residential work it concentrates risk on the builder and the novated consultants.
Dispute Resolution Clauses in Australian Residential Building Contracts
How mediation, expert determination, tribunals and litigation are structured in Australian residential building contracts, including the mandatory pre-tribunal processes in NSW, VIC and QLD.
Extension of Time Claims in Australian Residential Building Contracts
How extension of time claims work in AU residential building contracts: qualifying events, notice rules, the prevention principle and how time becomes at large.
Final Payment and Retention Release on Residential Builds (AU)
How the final claim works at Practical Completion, what triggers retention release at the end of the DLP, and what a defects notice does to your money.
Fixed Price Versus Lump Sum Contracts In AU Residential Construction
Builders often use fixed price and lump sum as synonyms. They are not the same thing under AU residential construction law and the difference shifts risk between builder and owner.
Force Majeure in Australian Residential Building Contracts
Force majeure is a creature of contract in Australia. What that means for AU residential builders, how COVID exposed the gaps and how to draft a clause that actually works.
Holdback and Retention on Australian Residential Builds
How the 5 and 2.5 per cent retention structure works across an Aussie home build, when each release happens, and where retention has to sit in a trust account.
Liquidated Damages in Australian Residential Building Contracts
How liquidated damages work in AU residential contracts: pre-estimate of loss, daily rate calculation, the penalties doctrine and state contract caps.
Milestone Payments in Australian Residential Building Contracts
How milestone payment schedules work in AU residential building. State by state stage requirements, claims-based alternatives and how Security of Payment Acts overlay.
Nominated vs Non-Nominated Subcontractors in AU Construction
Nominated subbies are picked by the principal but contracted by the builder. The split matters because the builder carries the risk for trades they did not choose.
Owner Builder Contracts in Australian Residential Building
When a homeowner holds an owner-builder permit they hire subcontractors directly. Statutory home warranty insurance does not cover the build, and the consumer protection regime flips.
Plans and Drawings in Australian Residential Building Contracts
Which plans, drawings and revisions form part of an Australian residential building contract, how order of precedence resolves conflicts, and where latent design risk sits when drawings change
Preliminary Services Agreements in Australian Residential Building
A preliminary services agreement covers the pre-construction work a builder does before the fixed-price contract is signed, including soil tests, design fees and council application costs.
Principal-Supplied Subcontractor Arrangements in AU Residential Building
How principal-supplied subcontractor arrangements differ from direct engagement in Australian residential building, and where contract risk and insurance sit.
Progress Claim Templates Compliant Under Australian SoP
What a compliant Security of Payment progress claim looks like, what each state requires in a supporting statement and where statutory declarations apply.
Progress Payment Disputes on Residential Builds in Australia
How residential progress payment disputes arise, how the Security of Payment Acts apply to builders and subbies, and which tribunal handles which fight in each state.
Provisional Sums and Prime Cost Items in Residential Contracts
How provisional sums and prime cost items work in AU residential building contracts, including builder margin treatment and the variation interaction.
Retention and Security Release Risk for Australian Builders
Retention runs 5 per cent, halved at practical completion. Trust accounts bite at $20m in NSW and $10m in QLD. WA sets a $20,000 threshold but excludes small-scale residential work. Unclaimed retention is money gone.
Retention Money in Australian Residential Construction
Retention money is a slice of each progress payment a head contractor withholds from a subcontractor to cover defects. In Australian residential construction it usually sits at 5 to 10 per cent
Risk Allocation in Australian Residential Building Contracts
The typical risk matrix for an Australian residential build: who carries the weather, latent ground, design, supply chain and regulatory approval risks, and how the contract should record those
Set-Off Rights for Builders in Australia: Contractual vs Equitable Set-Off
How set-off lets a builder reduce what it owes a counterparty by netting cross-claims, and how Security of Payment laws restrict it on progress payments.
Site Conditions and Latent Conditions Clauses in Australian Residential Contracts
Site condition warranties, latent condition clauses and how they allocate risk for unforeseen ground conditions, contamination and underground services on Australian residential building jobs.
Specification and Scope of Works in Australian Residential Building Contracts
A Scope of Works defines exactly what the builder must build, to what quality, using which products. Ambiguity in the SoW is the single biggest source of variation disputes on Australian
Subcontract Agreements in Australian Residential Building
A subcontract sits between a head contractor builder and a trade. Back-to-back terms and flow-down clauses transfer head contract obligations down, but security of payment law limits how far
Subcontractor Claims When a Builder Defaults
When a residential head contractor stops paying or goes under, subbies have a layered set of remedies in Australian law. Security of Payment adjudication is usually the fastest. Subcontractors
Subcontractor Payment Schedules Under Security of Payment Acts
When a subbie issues a payment claim under a state Security of Payment Act the head contractor has a hard statutory window to respond with a payment schedule. In NSW and VIC that window is 10
Termination Rights in Australian Residential Building Contracts
Termination for breach, common law repudiation and state-specific exit rights in AU residential building contracts: how each ground works and what triggers it.
Cooling-off rights for NSW residential building contracts
The 5 clear business day cooling-off period under section 7BA of the Home Building Act 1989, when it applies (over $20,000 incl GST), how rescission works, refund obligations, and the extended
Deposit Limits for Residential Building Work in NSW
Section 8 of the Home Building Act 1989 caps a NSW deposit at 10 per cent of the contract price. One number, no value tiers, no threshold: the simplest deposit rule in the country.
How to choose a standard residential building contract in NSW
A practical guide for NSW residential builders on choosing between HIA, Master Builders and bespoke contracts, covering the mandatory terms imposed by the Home Building Act 1989 and the five
Practical completion and handover for NSW residential building work
How completion is defined under section 3B of the Home Building Act 1989, the four statutory presumption dates, why practical completion triggers final payment plus the statutory warranty clock
Prime Cost and Provisional Sum Items in NSW Building Contracts
The Home Building Act 1989 never defines a prime cost item or a provisional sum. What it does force is the s 7 (5) warning next to the price on page one, and it caps no margin.
Progress payment rules under the Home Building Act 1989 (NSW): section 8A
For NSW residential building work over $20,000, section 8A of the Home Building Act 1989 limits progress payments to milestone, claim-by-claim or regulation-authorised bases, with the deposit
Retention Trust Funds in NSW Construction
NSW requires head contractors on head contracts worth $20 million or more to hold subcontractor retention money in an approved trust account. The scheme is set up under the Building and
Security of Payment NSW: Payment Claims and Adjudication Explained
The Building and Construction Industry Security of Payment Act 1999 (NSW) gives builders, subcontractors and suppliers a fast statutory right to be paid for construction work. This entry covers
Variations to NSW residential building contracts: written and signed under the Home Building Act 1989
How variations to NSW residential building contracts must be documented under section 7E and Schedule 2 of the Home Building Act 1989. The written-and-signed rule, what a compliant variation
When a NSW Builder Can Lawfully Terminate a Home Building Contract
The Home Building Act 1989 grants no termination right, it only makes you state one. Section 10 then makes a non-compliant contract unenforceable by the builder alone, so the owner can still sue you.
When Cost Plus Contracts Are Lawful in New South Wales
Section 8A(2)(b) of the Home Building Act 1989 (NSW) permits cost plus at any contract value, with a margin, subject to documentation. Victoria bans it below $1,000,000.
Contract Termination Rights for Builders in Victoria
Section 49X of the Domestic Building Contracts Act 1995 (Vic) gives a Victorian builder a statutory right to end a domestic building contract once the owner breaches a dispute resolution order.
Cooling off on major VIC building contracts: section 34 mechanics in detail
A deep dive into the five clear business day cooling off period under section 34 of the Domestic Building Contracts Act 1995 (Vic). Major vs minor threshold, the notice and refund mechanics.
Cooling-off rights for VIC residential building contracts
The 5 clear business day cooling-off period under section 34 of the Domestic Building Contracts Act 1995 (Vic), when it applies (major domestic building contracts over $10,000 incl GST), how
Deposit Limits for Residential Building Contracts in Victoria
Section 11 of the Domestic Building Contracts Act 1995 (Vic) caps deposits at 5 per cent above $20,000 and 10 per cent below. It applies to every domestic building contract, not only major ones.
Domestic Building Contract Requirements in Victoria
Victorian domestic building work over $10,000 needs a major domestic building contract. Section 31 sets the mandatory contents. Section 25 gives the owner a signed copy within 5 clear business days.
Practical completion and occupancy permits for VIC residential building work
How Victorian builders manage practical completion and the occupancy permit. The contract defines practical completion in Victoria (unlike NSW which has a statutory definition under HBA section
Prime Cost Items and Provisional Sums in Victoria
Sections 20 to 23 of the Domestic Building Contracts Act 1995 (Vic) govern prime cost and provisional sum items. Victoria does not cap the margin on an over-run. It forces you to disclose the method.
Progress Payment Rules Under the DBCA in Victoria
Section 40 of the Domestic Building Contracts Act 1995 (Vic) caps a build-all-stages contract at base 10, frame 15, lock-up 35 and fixing 25 per cent. These are ceilings, not entitlements.
Section 137B owner-builder resale rules in Victoria
Section 137B of the Building Act 1993 stops an owner-builder selling within 6 years and 6 months of completion without a defects report, the section 137C warranty and the required resale insurance.
Security of Payment VIC: How Builders and Subbies Get Paid Fast
The Building and Construction Industry Security of Payment Act 2002 (Vic) gives Victorian builders and subcontractors a statutory right to claim progress payments and have disputes determined by
Variations to VIC residential building contracts: written and signed under DBCA section 38
How variations to Victorian major domestic building contracts must be documented under section 38 of the Domestic Building Contracts Act 1995. The written-and-signed rule, the cost-estimate
When Cost Plus Contracts Are Lawful in Victoria
Section 13 of the Domestic Building Contracts Act 1995 (Vic) plus regulation 10 make cost plus lawful only at $1,000,000 or more, or for renovation work that genuinely cannot be costed first.
BIF Act security of payment for Queensland builders
How the Building Industry Fairness (Security of Payment) Act 2017 (Qld) gives builders, subcontractors and suppliers a statutory right to be paid. Payment claims, payment schedules within 15
Contract Termination Rights for Builders in Queensland
Queensland gives a builder no statutory right to terminate. Schedule 1B arms the owner, so the exit is contractual: substantial breach, a 10 business day notice to remedy, then a second notice.
Cooling-off rights for QLD residential building contracts
The 5 business day cooling-off right for regulated residential building contracts in Queensland under Schedule 1B of the QBCC Act 1991. When the right applies, how rescission works, refund
Cost Plus Contracts: Lawfulness in Queensland
Cost plus is lawful for domestic building work in Queensland at any value. Schedule 1B of the QBCC Act 1991 regulates it by reasonable estimate at $3,300 and $20,000 rather than banning it.
Deposit Limits for Residential Building Contracts in Queensland
Queensland caps deposits by contract level: 10 per cent for level 1 contracts under $20,000, 5 per cent for level 2 at or above it, 20 per cent where off-site work exceeds half the price.
Practical Completion and Handover in Queensland
In Queensland practical completion is a defined day, not a milestone the builder declares. Schedule 1B builds the defects document into the definition: no defects document, no practical completion.
Prime Cost Items and Provisional Sums in Queensland
Queensland turns the allowance itself into a statutory warranty: Schedule 1B section 26 makes the builder warrant it was calculated with reasonable care and skill, and section 28 voids any disclaimer.
Progress Payment Rules Under the QBCC Act in Queensland
Queensland legislates no stage table. Schedule 1B section 34 lets a builder claim only what is directly related to progress on site and proportionate to the work done, on penalty of 50 penalty units.
Schedule 1B QBCC Act: Level 1 vs Level 2 Domestic Building Contracts (QLD)
Schedule 1B of the QBCC Act sets the rules for residential building contracts in Queensland. This entry explains Level 1 vs Level 2 contracts and the consequences of using a non-compliant one.
Variations to QLD residential building contracts
How variations to regulated residential building contracts in Queensland must be documented under Schedule 1B of the QBCC Act 1991. Written and signed, identifying the work, price impact and
Are Cost Plus Contracts Lawful in WA?
Cost plus is lawful in WA and almost entirely unregulated. Section 3 of the HBCA excludes it from the Act, so the 6.5 per cent deposit cap and progress payment rules do not apply.
Contract Termination Rights for Builders in WA
When a WA builder may lawfully walk away. The HBCA gives builders almost no statutory exit, and Home Indemnity Insurance does not respond when a solvent builder abandons a job.
Cooling-off rights for WA home building contracts
Western Australia has no statutory cooling-off period for home building contracts. The Home Building Contracts Act 1991 (WA) does not provide a statutory rescission window. How that compares
Deposit Limits for Residential Building Contracts in Western Australia
Western Australia caps deposits at 6.5 per cent of the contract price under section 10(1)(a) of the HBCA 1991, the only cap in the country that is not a round number, with a 20 per cent cabinetry exception.
Home Building Contract Requirements in Western Australia
What the HBCA 1991 requires of a WA home building contract between $7,500 and $500,000: writing, the prescribed Notice before signing, a copy before work starts, and no cooling-off period.
Practical Completion and Handover in Western Australian Building Contracts
Western Australia leaves practical completion to the contract. Section 11 of the Home Building Contracts Act 1991 (WA) attaches a 4 month defect make-good to that undefined date.
Prime Cost Items and Provisional Sums in WA Home Building Contracts
Section 12 of the Home Building Contracts Act 1991 (WA) makes understating a prime cost item or provisional sum an offence carrying a $10,000 penalty. WA caps no margin.
Progress Payment Rules Under the HBCA in Western Australia
Section 10(1)(b) of the HBCA 1991 allows only genuine progress payments for work already performed or materials already supplied. Nothing before commencement except the 6.5 per cent deposit.
Security of Payment WA: The 2021 Act and New Adjudication Regime
The Building and Construction Industry (Security of Payment) Act 2021 (WA) replaced the Construction Contracts Act 2004 from 1 February 2022 and brought Western Australia into line with the East
Variations to Residential Building Contracts in Western Australia
Section 7 of the HBCA 1991 requires variations in writing, signed, costed and given to the owner before the varied work starts. Section 27 means an unwritten variation is still not automatically void.
Building Work Contract Requirements in SA
SA domestic building work contracts must be written at $20,000 or more, carry the section 28 particulars plus a Form 1 notice and sit behind $250,000 indemnity cover in place before work starts.
Cooling-Off on Residential Building Contracts in SA
In SA cooling-off is a section 36 right to terminate: five clear business days from making the contract, with no fixed sum the builder keeps. A Division 1 or 3 breach extends it to completion.
Deposit Limits for Residential Building Contracts in SA
South Australia caps the deposit at $1,000 where the price is under $20,000 and 5 per cent where it is $20,000 or more. The cap moved into section 30(4) of the Act on 15 January 2026.
Practical Completion and Handover in South Australian Building Contracts
The Building Work Contractors Act 1995 (SA) does not define practical completion. Section 32 sets a strict 5 year warranty clock from completion, confirmed in Duncan v Bert Farina.
Prime Cost Items and Provisional Sums in SA
SA does not define PC items or provisional sums in statute. They run on section 29(5) plus regulation 16, which caps the builder margin at 15 per cent, and an unfair estimate is an offence.
Progress Payment Rules Under the BWC Act in SA
SA bans any payment that is not a genuine progress payment for work already performed, with a $500,000 maximum penalty for a company. Advance money is limited to a short list of third party costs.
Security of Payment SA: Payment Claims and Adjudication in South Australia
The Building and Construction Industry Security of Payment Act 2009 (SA) gives South Australian builders and subcontractors a fast statutory right to progress payments. This entry covers payment
Variations to Residential Building Contracts in SA
The BWC Act has no variations section. SA does not require a variation in writing, so recovery turns on your own clause plus section 29, which demands a fixed price and price-change labelling.
When a South Australian Builder Can Lawfully Terminate a Building Contract
The Building Work Contractors Act 1995 (SA) gives a builder no statutory termination right. Grounds live in the contract, and section 36(5)(b) opens a wide route out for the owner.
When Cost Plus Contracts Are Lawful in South Australia
Section 29 of the Building Work Contractors Act 1995 (SA) permits cost plus contracts at any value, with the margin capped at 15 per cent. The same 15 per cent caps prime cost surcharges.
Are Cost Plus Contracts Lawful for Residential Building Work in Tasmania?
Cost plus is lawful in Tasmania at any contract price, with no threshold and no ban. The Act names it, then binds it with a fair and reasonable estimate and the progress payment rule.
Cooling-Off in Tasmanian Residential Building Contracts
Tasmania gives owners 5 business days to withdraw, counted from the day they receive the signed contract and the consumer guide, not from signing. The builder keeps $100 plus expenses.
Deposit Limits for Residential Building Work in Tasmania
Tasmania caps deposits at 10 per cent for contracts from $20,000 to $50,000 and 5 per cent above $50,000, with 20 per cent where most of the work is off-site.
Practical Completion and Handover in Tasmanian Building Contracts
Tasmania defines the date of practical completion in section 4 of the 2016 Act. The builder has 10 business days to give notice, 6 months to fix listed defects and faces a 6 year limitation.
Prime Cost Items and Provisional Sums in Tasmanian Building Contracts
Tasmania defines prime cost items and provisional sums in statute and warrants both be calculated with reasonable care and skill, but leaves the adjustment mechanism and the margin to the contract.
Progress Payment Rules for Residential Building Work in Tasmania
Tasmania prescribes no stage payment table. Section 42 requires every payment other than the deposit to relate directly to work actually performed at the building site.
Residential Building Contract Requirements in Tasmania
Tasmanian residential building contracts of $20,000 or more must be written, signed and handed over within 5 business days, and carry statutory warranties that cannot be waived.
Security of Payment Act Tasmania: a practical builders guide
How the Building and Construction Industry Security of Payment Act 2009 (TAS) works. Payment claims, payment schedules, adjudication and enforcement for Tasmanian builders.
Variations to Residential Building Contracts in Tasmania
Tasmania legislates variations in sections 17 to 21. They must be written and signed before added work starts, but the Act penalises the builder rather than barring recovery.
When a Tasmanian Builder Can Lawfully Terminate a Building Contract
Tasmania's 2016 Act gives a builder no statutory right to terminate. The grounds live in the contract and the common law, and skipping the show-cause step turns termination into repudiation.
ACT Residential Building Contract Requirements
Residential building work of $12,000 or more in the ACT carries statutory warranties and compulsory insurance. What the Building Act 2004 makes the contract say, and what it leaves alone.
Cooling-Off Rights on ACT Residential Building Contracts
There is no cooling-off period for building work contracts in the ACT. The 5 working day right people remember belongs to residential property sales, and using it forfeits 0.25 per cent.
Cost Plus Contracts for ACT Residential Building Work
Cost plus is lawful in the ACT at any value because nothing in the Building Act 2004 restricts it. Victoria bars it under $1,000,000. The ACT never legislated the question at all.
Deposit Limits on ACT Residential Building Contracts
The ACT sets no statutory deposit cap on residential building work. The only hard number is insurance: just $10,000 of a lost deposit is recoverable under the Building Act 2004.
Practical Completion and Handover in ACT Building Contracts
The Building Act 2004 never defines practical completion. It defines completion day in s 85, and that is the date every ACT statutory clock runs from, including the 2 year defect notice.
Prime Cost and Provisional Sum Items in ACT Building Contracts
The ACT does not legislate prime cost or provisional sums. Section 89C of the Building Act 2004 lets a regulation prescribe standard conditions, but none exists, so the contract is the only rule.
Progress Payment Rules for ACT Residential Building Work
The Building Act 2004 prescribes no progress payment stages for ACT residential work, and Security of Payment shuts out resident owners. The contract is the only schedule you get.
Security of Payment Act ACT: a builders guide
How the Building and Construction Industry (Security of Payment) Act 2009 (ACT) works. Payment claims, schedules, adjudication and the 2024 amendments explained.
Variations to ACT Residential Building Contracts
The Building Act 2004 does not legislate variations at all. No writing rule, no notice rule, no bar on recovery. In the ACT a variation is worth exactly what the contract says it is worth.
When an ACT Builder Can Lawfully Terminate a Building Contract
The Building Act 2004 gives an ACT builder no statutory right to terminate. The contract and the common law are all there is, and a solvent builder who walks leaves the owner with no insurance cover.
Are Cost Plus Contracts Lawful in the Northern Territory?
The NT never names cost plus. Regulation 41H(d) demands a total contracted price and regulation 41HD makes a non-compliant contract a 100 penalty unit offence, but not an unenforceable one.
Cooling-Off on Residential Building Contracts in the NT
The NT has no statutory cooling-off period for residential building contracts. Neither the Building Act 1993 nor the Building Regulations 1993 creates one. Signature binds.
Deposit Limits on Residential Building Contracts in the NT
The NT caps the deposit at 5 per cent of the total contracted price. The cap sits in the Building Regulations 1993, not the Act, and carries a 50 penalty unit fine plus a possible refund order.
Practical Completion and Handover in the Northern Territory
The NT defines practical completion in regulation 41HA(2), not the Act. It carries no more than 7 per cent, and the final claim waits until the occupancy permit is granted and copied to the owner.
Prime Cost Items and Provisional Sums in the Northern Territory
The NT legislates no prime cost or provisional sum regime at all. Regulation 41H demands only a total contracted price, and moving it by more than 5 per cent forces a fidelity cover reassessment.
Progress Payment Rules for NT Residential Building Work
The NT legislates a stage table: 10 per cent base, 20 frame, 25 enclosed, 30 fixing, 7 practical completion, the remainder at final. Regulation 41HA, one of only two such tables in Australia.
Residential Building Contract Requirements in the Northern Territory
NT prescribed building work over $25,000 needs a written contract with eight mandatory terms under regulation 41H. Non-compliance is a 100 penalty unit offence.
Security of Payment NT: a builders guide to the West Coast model
How the Construction Contracts (Security of Payments) Act 2004 (NT) works. Single-step adjudication, 90 day window and how the NT regime differs from the East Coast model.
Variations to Residential Building Contracts in the NT
The NT has no statutory variations regime. No writing rule, no notice rule, no bar on recovery. Variations are pure contract, but regulation 41HE still caps what the builder can invoice.
When an NT Builder Can Lawfully Terminate a Residential Building Contract
The Building Act 1993 (NT) gives builders no statutory termination right. Skip the notice to remedy and your termination becomes repudiation. Section 160 bars a building action after 10 years.