Ah, if only undergoing home renovations was as easy as television shows like Selling Houses Australia. Sure the owners face some difficulties, but for the most part, they get the renovations done within the hour, and the house is as good as new. Unfortunately for the rest of us, we don’t exist in television-land, and sometimes renovation work can feel like it’s moving at a glacial pace. Furthermore, in real life we also have to deal with finicky things like building contracts. We’re all bound by some sort of contractual obligation in our daily interactions, so it shouldn’t come as too much of a surprise that if you’re considering undergoing home renovations, being aware of the basics of a building contract, may make your domestic building experience feel almost – and we do emphasise the word almost – as seamless as an episode of Selling Houses Australia.
When do I need a written contract for building work?
If you’re about to embark on renovations, you should be aware that the States have different monetary amounts before a written contract is required.
In New South Wales, any building work greater than $1000 requires a contract, while in Queensland it’s $3301. Finally in Victoria, a contract is normally necessary for most renovation work greater than $5000. However, you should probably err on the side of caution and have a contract drawn up for most renovation work to save yourself from any heartache.
What are the contractual terms for domestic building work?
Anyone who is contemplating renovation work on their home should be mindful that a contract ought to have the following details:
- the contract must be in writing
- the names, addresses and signatures of all parties must be in the contract
- descriptions of the plans and specifications must be outlined
- the builder’s licensing information
- the date of commencement and completion of the work should be noted
- the contract price should always be prominently highlighted.
Homeowners also have the right to withdraw from a contract within a cooling off period, which is usually five business days after receiving a signed contract from the builder. If you do decide to exercise your right to withdraw from the contract, written notice must be given to the builder, and you may be liable for some costs if you choose to withdraw from the contract.
Variations to a building contract
It’s quite possible that some readers when undergoing building work on their home, may face issues where variations to the agreement may be necessary due to a change in the plans or specifications regarding the renovation work. In the event that a builder requests a variation, he or she must outline their reasons for the variation in writing, and state why the variation is considered necessary. Furthermore, unless the work is urgent, variations that are initiated by the builder cannot be carried out without the consent of the homeowner in some instances.
Please be aware that the information in this article is a general outline to home building contracts. All States in Australia have different legislative requirements, and you should always seek legal assistance if you have an issue with a building contract.
