Building and Renovation Contract (Australia)
This Building and Renovation Contract (the "Contract") is entered into on [Sign Date] by and between [Owner Name] of [Owner Address] (the "Owner") and [Builder Name] (ABN: [Builder ABN], Licence No. [Builder Licence Number]) of [Builder Address] (the "Builder"). The Owner and the Builder are each referred to individually as a "Party" and collectively as the "Parties".
1. CONTACT INFORMATION
Owner: [Owner Name], Tel: [Owner Phone], Email: [Owner Email]
Builder: [Builder Name], Licence: [Builder Licence Number], ABN: [Builder ABN], Tel: [Builder Phone], Email: [Builder Email]
All notices required or permitted under this Contract shall be in writing and delivered to the addresses or email addresses set out above.
2. SCOPE OF WORK
2.1 The Builder agrees to perform the following [Renovation Type] work at the property located at [Property Address] (the "Property") in a proper and workmanlike manner and in compliance with the Building Code of Australia, applicable Australian Standards, and all relevant legislation:
[Scope of Work]
2.2 [Materials Responsibility]. All materials supplied by the Builder shall be new, of good quality, and of acceptable quality within the meaning of section 54 of the Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010 (Cth)).
2.3 Any variation to the scope of work must be agreed in writing by both Parties in a signed variation order before the varied work commences. Variations may affect the contract price and the completion date.
3. PROJECT TIMELINE
3.1 The Builder shall commence work on or before [Start Date] and shall use all reasonable endeavours to achieve practical completion by [Completion Date] (the "Completion Date"). Time is of the essence with respect to the Completion Date.
3.2 Work will be performed during the following hours: [Working Hours], unless otherwise required by law or agreed in writing. The Builder shall comply with all applicable council noise and construction hours requirements.
3.3 The Completion Date shall be extended by any period during which the Builder is delayed by: (a) adverse weather conditions making work impracticable; (b) variations directed by the Owner; (c) delays in obtaining approvals; (d) latent conditions not reasonably foreseeable at the date of this Contract; or (e) any other cause beyond the Builder's reasonable control. The Builder shall notify the Owner in writing of any anticipated extension as soon as practicable.
4. CONTRACT PRICE AND PAYMENT
4.1 The Owner agrees to pay the Builder a total contract price of [Contract Price] (AUD) (the "Contract Price") for the complete and satisfactory performance of the works described in clause 2.
4.2 A deposit of [Deposit Amount] is payable on execution of this Contract. For residential building work in most Australian states, the deposit is capped by applicable domestic building legislation. The Owner should confirm the applicable cap with their state or territory building authority before signing.
4.3 The payment schedule is: [Payment Schedule]. Progress payments are due within 5 business days of the Builder's written claim unless otherwise agreed.
4.4 A retention of [Retention %]% of the Contract Price may be withheld by the Owner until the expiry of the Defects Liability Period.
4.5 If payment is not made by the due date, the Builder may: (a) suspend work after giving 2 business days' written notice; and (b) claim interest on the overdue amount at the applicable rate under the Building and Construction Industry Security of Payment Act applicable in [Governing State] or equivalent legislation.
4.6 If GST under the A New Tax System (Goods and Services Tax) Act 1999 (Cth) is payable on any supply under this Contract, the Contract Price is (or includes) that amount and the Builder will issue valid tax invoices.
5. PERMITS AND APPROVALS
5.1 The Builder shall obtain all building approvals, development consents, construction certificates, and other regulatory approvals required for the lawful commencement and performance of the works, unless otherwise agreed in writing. Approval costs shall be included in the Contract Price unless separately identified.
5.2 The Builder shall schedule and coordinate all required inspections with the Principal Certifying Authority and shall provide the Owner with copies of all relevant inspection certificates and approvals upon completion.
5.3 The Owner warrants that the Owner has lawful authority to carry out the works on the Property and that no easement, covenant, heritage order, or other encumbrance prevents or restricts the proposed works.
6. STATUTORY WARRANTIES
6.1 For residential building work, the Builder acknowledges that statutory warranties apply under applicable state legislation, including (without limitation):
(a) In New South Wales: sections 18B to 18E of the Home Building Act 1989 (NSW), which imply non-excludable warranties that residential building work will be done with due care and skill and in accordance with the plans and specifications; that all materials will be good and suitable for their purpose and new unless otherwise stated; that the work will comply with all relevant laws and legal requirements; that the work will be completed by the date agreed; and that if the work is residential building work to which Part 2C applies, it will result in a dwelling that is reasonably fit for occupation as a dwelling.
(b) In Victoria: section 8 of the Domestic Building Contracts Act 1995 (VIC) implies warranties as to builder competence, quality of materials, compliance with the law, and the work being carried out with reasonable care and skill.
(c) In other states and territories: equivalent statutory warranties under applicable domestic building contracts legislation.
6.2 These statutory warranties cannot be excluded by this Contract. Nothing in this Contract limits or modifies the Owner's statutory rights.
7. DEFECTS LIABILITY PERIOD
7.1 The Defects Liability Period is [Defects Liability Period] commencing on the date of practical completion.
7.2 The Builder shall, at the Builder's cost, rectify any defect in workmanship or materials that becomes apparent during the Defects Liability Period, within a reasonable time of receiving written notice from the Owner.
7.3 The Defects Liability Period does not limit any rights the Owner may have under the statutory warranties described in clause 6, which may provide for longer periods of warranty protection.
8. HOME BUILDING COMPENSATION AND INSURANCE
8.1 The Builder confirms that home warranty insurance (Home Building Compensation Fund in NSW, Domestic Building Insurance in VIC, or equivalent in the applicable state or territory) is held: [HBCF Insurance].
8.2 Where required by law, the Builder must not demand or receive payment under this Contract until the Builder has obtained and provided the Owner with a certificate of home warranty insurance. In NSW, this requirement is imposed by section 92 of the Home Building Act 1989 (NSW) for contracts to which that section applies.
8.3 The Builder shall also maintain: (a) public liability insurance of not less than $10,000,000 per occurrence; and (b) workers' compensation insurance in compliance with applicable state or territory legislation throughout the duration of the works.
9. WORK HEALTH AND SAFETY
9.1 The Builder, as person conducting a business or undertaking (PCBU) within the meaning of the Work Health and Safety Act 2011 (Cth) and equivalent state and territory legislation, shall take all reasonably practicable measures to ensure the health and safety of workers and other persons who may be affected by the works.
9.2 The Owner shall disclose to the Builder all known hazards on the Property prior to commencement of work, including the presence of asbestos, lead paint, contaminated soil, unstable ground, or any other condition that may affect the safety of the works.
10. TERMINATION
10.1 Either Party may terminate this Contract upon written notice if the other Party commits a material breach of any provision hereof and fails to remedy such breach within 10 business days of receiving written notice requiring remedy.
10.2 The Owner may terminate this Contract for convenience upon 10 business days' written notice to the Builder. In such event, the Owner shall pay the Builder for all work satisfactorily performed and materials properly procured up to the date of termination, together with reasonable demobilisation and standing costs.
10.3 Termination rights under this Contract are in addition to, and do not limit, any rights available to either Party under applicable domestic building contracts legislation.
11. DISPUTE RESOLUTION
11.1 If a dispute arises between the Parties in connection with this Contract, the Parties shall first attempt to resolve the dispute by good-faith negotiation within 14 days of one Party notifying the other in writing of the dispute.
11.2 If the dispute is not resolved by negotiation, either Party may refer the dispute to the relevant state or territory building disputes tribunal or fair trading authority — including, for example, NSW Fair Trading, the Victorian Civil and Administrative Tribunal (VCAT), or the Queensland Building and Construction Commission (QBCC) — as applicable.
11.3 Nothing in this clause prevents either Party from seeking urgent injunctive or other interlocutory relief from a court of competent jurisdiction.
12. GOVERNING LAW
12.1 This Contract is governed by the laws of [Governing State], Australia. Each Party submits to the non-exclusive jurisdiction of the courts of [Governing State] and the Federal Court of Australia.
12.2 This Contract is subject to the mandatory provisions of applicable domestic building contracts legislation in [Governing State], which cannot be excluded or modified by the parties.
13. GENERAL
13.1 This Contract constitutes the entire agreement between the Parties with respect to the building and renovation works and supersedes all prior discussions, representations, and agreements.
13.2 This Contract may only be amended by a written instrument signed by both Parties.
13.3 If any provision of this Contract is held to be invalid or unenforceable, the remaining provisions continue in full force and effect.
IN WITNESS WHEREOF, the Parties have executed this Building and Renovation Contract as of the date first written above.
OWNER:
Name: [Owner Name]
Address: [Owner Address]
BUILDER / CONTRACTOR:
Name: [Builder Name]
ABN: [Builder ABN]
Licence No.: [Builder Licence Number]
Address: [Builder Address]
Owner
________________
Signature
Date: ________________
Builder
________________
Signature
Date: ________________
What Is a Building and Renovation Contract (Australia)?
A Building and Renovation Contract in Australia sets the scope of works, price, timeframe, and variation and completion procedures between the principal and the builder or contractor under the Corporations Act 2001 (Cth).
In Australia, domestic building work is subject to a complex framework of state and territory legislation that varies significantly between jurisdictions. The primary legislative frameworks include the Home Building Act 1989 (NSW), the Domestic Building Contracts Act 1995 (VIC), the Queensland Building and Construction Commission Act 1991 (QLD), and equivalent Acts in South Australia, Western Australia, Tasmania, the Australian Capital Territory, and the Northern Territory.
All residential building contracts in Australia must comply with mandatory requirements that cannot be excluded or modified by the parties, including: builder licensing requirements; deposit caps; mandatory home warranty insurance; prescribed progress payment stages; statutory warranties as to workmanship, materials, and fitness for purpose; and minimum defects liability periods.
The Australia Building and Renovation Contract (Australia) template provides a professionally structured contract framework that incorporates key statutory obligations and is suitable for use in any Australian state or territory. It is designed for use by homeowners engaging licensed builders for renovation, extension, or new residential construction work.
The legal framework governing the Building and Renovation Contract (Australia) in Australia draws on several key statutes and regulatory bodies. Under the Corporations Act 2001 (Cth), the Australian Securities and Investments Commission (ASIC) regulates companies and financial services. Section 127 of the Corporations Act 2001 governs company execution of documents. The Australian Competition and Consumer Commission (ACCC) enforces the Competition and Consumer Act 2010 (Cth). The Australian Taxation Office (ATO) administers the Goods and Services Tax under the A New Tax System (Goods and Services Tax) Act 1999. The Federal Court of Australia and Supreme Courts of each state have jurisdiction over corporate disputes. Parties executing a Building and Renovation Contract (Australia) in Australia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Corporations Act 2001 (Cth) sets the foundational requirements.
When Do You Need a Building and Renovation Contract (Australia)?
A Building and Renovation Contract should be used for any significant building work on a residential property in Australia. In most states, a written contract is mandatory for domestic building work above a prescribed value — for example, over $5,000 in NSW and over $10,000 in Victoria.
A written contract is particularly important for: kitchen or bathroom renovations; home extensions and additions; new dwelling construction; structural repairs; and any project involving a significant contract price or extended timeline. Even for smaller projects, a written contract is strongly recommended to document the scope, price, and timeline agreed by the parties.
For commercial renovation work — such as fit-outs of retail, office, or industrial premises — a building contract is also essential, though the statutory framework governing commercial work differs from residential work and the mandatory protections described above generally do not apply.
Homeowners should always verify the builder's licence status through the relevant state authority before signing a contract. In NSW, licence details can be checked at the NSW Fair Trading licence check tool. In Victoria, the Victorian Building Authority (VBA) register can be searched online. In Queensland, licence details can be verified through the QBCC licence search.
Parties in Australia should prepare a Building and Renovation Contract (Australia) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under the Corporations Act 2001 (Cth), the Australian Securities and Investments Commission (ASIC) regulates companies and financial services. Section 127 of the Corporations Act 2001 governs company execution of documents. The Australian Competition and Consumer Commission (ACCC) enforces the Competition and Consumer Act 2010 (Cth). The Australian Taxation Office (ATO) administers the Goods and Services Tax under the A New Tax System (Goods and Services Tax) Act 1999. The Federal Court of Australia and Supreme Courts of each state have jurisdiction over corporate disputes. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Building and Renovation Contract (Australia)
A thorough Australian Building and Renovation Contract should include the following essential elements:
Party details and builder licence number: Both parties' full legal names, addresses, and contact details, together with the builder's current licence or registration number. Engaging an unlicensed builder is an offence and may void home warranty insurance.
Scope of work: A detailed description of all work to be performed, including materials, finishes, and specifications. The more detailed the scope, the easier it is to resolve disputes about what was agreed.
Contract price and deposit: The total contract price and the deposit amount, which must not exceed the applicable statutory cap. The contract should clearly state whether the price is fixed or subject to provisional sums or prime cost items.
Payment schedule: Progress payment stages, the amounts due at each stage, and the timeframe for payment. In NSW, the prescribed stages are: deposit, base, frame, lock-up, fixing, and practical completion.
Timeline: Expected commencement and completion dates, permitted working hours, and provisions for extensions of time due to weather, variations, or other delays.
Statutory warranties: Acknowledgement that the statutory warranties implied by the applicable state legislation cannot be excluded. These are the most important protections for homeowners.
Home warranty insurance: Confirmation that the required home warranty insurance has been obtained before any payment is demanded.
Defects liability period: The contractual defects liability period after practical completion, during which the builder must fix defects at no cost to the owner.
Variations: A process for agreeing, recording, and pricing variations to the scope of work.
Work health and safety: Compliance with applicable WHS legislation and the owner's obligation to disclose known site hazards.
Dispute resolution: Reference to state-specific dispute resolution bodies — NSW Fair Trading, Consumer Affairs Victoria, QBCC — and specialist tribunals.
Governing law: The state or territory whose laws apply.
Additional compliance elements for a Building and Renovation Contract (Australia) used in Australia include: Under the Corporations Act 2001 (Cth), the Australian Securities and Investments Commission (ASIC) regulates companies and financial services. Section 127 of the Corporations Act 2001 governs company execution of documents. The Australian Competition and Consumer Commission (ACCC) enforces the Competition and Consumer Act 2010 (Cth). The Australian Taxation Office (ATO) administers the Goods and Services Tax under the A New Tax System (Goods and Services Tax) Act 1999. The Federal Court of Australia and Supreme Courts of each state have jurisdiction over corporate disputes. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
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Forms Legal. (2026). Building and Renovation Contract (Australia) (Australia) [Legal document template]. Forms Legal. https://forms-legal.com/australia/business/construction/building-renovation-contract-australia
"Building and Renovation Contract (Australia) (Australia)." Forms Legal, 2026, https://forms-legal.com/australia/business/construction/building-renovation-contract-australia.
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title = {Building and Renovation Contract (Australia) (Australia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/australia/business/construction/building-renovation-contract-australia}},
note = {Free legal document template. Based on Corporations Act 2001 (Cth)}
}Also available for these jurisdictions:
Frequently Asked Questions
Statutory warranties are implied by law into all contracts for residential building work and cannot be excluded by contract. In New South Wales, sections 18B to 18E of the Home Building Act 1989 (NSW) imply warranties that the work will be done with due care and skill, materials will be new, good, and suitable for their purpose, the work will comply with all relevant laws, the work will be completed by the agreed date, and the dwelling will be reasonably fit for occupation. In Victoria, section 8 of the Domestic Building Contracts Act 1995 (VIC) implies similar warranties. All other states and territories have equivalent provisions. These statutory warranties last for 6 years for major defects and 2 years for other defects in most jurisdictions. Under Australia law, Corporations Act 2001 (Cth), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under the Corporations Act 2001 (Cth), the Australian Securities and Investments Commission (ASIC) regulates companies and financial services. Section 127 of the Corporations Act 2001 governs company execution of documents. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
Yes, home warranty insurance is mandatory for domestic building work above a threshold value in most states. In NSW, the Home Building Compensation Fund (HBCF) insurance is required under section 92 of the Home Building Act 1989 (NSW) for residential building work over $20,000. In Victoria, Domestic Building Insurance (DBI) is required under the Domestic Building Contracts Act 1995 (VIC) for work over $16,000. In Queensland, similar requirements apply under the Queensland Building and Construction Commission Act 1991. Home warranty insurance protects the owner if the builder becomes insolvent, dies, or disappears before completing the work or rectifying defects. A builder who demands or receives payment without obtaining the required insurance commits an offence. Under Australia law, Corporations Act 2001 (Cth), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under the Corporations Act 2001 (Cth), the Australian Securities and Investments Commission (ASIC) regulates companies and financial services. Section 127 of the Corporations Act 2001 governs company execution of documents. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
Deposit caps apply to residential building work in most Australian states. In NSW, under the Home Building Act 1989, the maximum deposit is 10% of the contract price for contracts valued over $20,000, or 5% for contracts over $500,000. In Victoria, under the Domestic Building Contracts Act 1995 (VIC), the maximum deposit is 5% for contracts over $20,000. Builders who demand a deposit exceeding the statutory cap commit an offence. Homeowners should never pay a deposit in excess of the applicable statutory cap and should always obtain a signed contract and insurance certificate before making any payment. Under Australia law, Corporations Act 2001 (Cth), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under the Corporations Act 2001 (Cth), the Australian Securities and Investments Commission (ASIC) regulates companies and financial services. Section 127 of the Corporations Act 2001 governs company execution of documents. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
Under the Home Building Regulation 2014 (NSW), the prescribed progress payment stages for residential building work in New South Wales are: deposit (maximum 10%), base stage (footings complete), frame stage, lock-up stage (external walls, windows, and roof complete), fixing stage (internal lining, architraves, and doors), and practical completion (all work complete). Builders may only claim payment when a prescribed stage has been genuinely completed. Homeowners have the right to arrange an independent inspection before making each progress payment. Similar staged payment requirements apply in other states under their domestic building legislation. Under Australia law, Corporations Act 2001 (Cth), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under the Corporations Act 2001 (Cth), the Australian Securities and Investments Commission (ASIC) regulates companies and financial services. Section 127 of the Corporations Act 2001 governs company execution of documents. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
If your builder performs defective work, you have several remedies. First, notify the builder in writing and give them the opportunity to rectify the defect under the contractual defects liability period and the statutory warranty. If the builder does not rectify the defect, you may refer the dispute to the relevant state authority — for example, NSW Fair Trading, Consumer Affairs Victoria, or the Queensland Building and Construction Commission — which can investigate the complaint, conduct inspections, and helps resolution. If the matter is not resolved, you can apply to the relevant tribunal — NCAT in NSW, VCAT in Victoria, or QCAT in Queensland. You may also make a claim on the home warranty insurance if the builder is insolvent, deceased, or has disappeared. Under Australia law, Corporations Act 2001 (Cth), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under the Corporations Act 2001 (Cth), the Australian Securities and Investments Commission (ASIC) regulates companies and financial services. Section 127 of the Corporations Act 2001 governs company execution of documents. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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