Frequently Asked Questions
You need to check the relevant legislation in your State and Territory, as the rules are different in each jurisdiction.
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How do I find out whether someone is a registered or licensed builder?
- Each state and territory has a government body such as the Office of Fair Trading or Consumer & Business Affairs which regulates and maintains a register of licensed builders. Often these government bodies delegate this work to state or territory Building Commissions or Boards.
- You can search the registers online or you can phone the Office of Fair Trading or Building Commission.
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What are the most important steps to take when renovating or building?
- It is a good idea to obtain more than one quote. However do not select your builder or contractor purely based on price. If the price of one is substantially lower than others it may be too good to be true. Make a list of issues that are important to you and discuss these issues with the builders before making your final choice.
- Investigate the builder’s previous work. Ask for the name, address and phone number of their last three projects. Be prepared to go and knock on doors or telephone to ask:
- whether former customers were happy with the work;
- the nature of any defects or other issues; and
- whether the project was delivered on time and budget.
- Check the builder’s licence. Almost all work from fencing up must be performed by a licenced contractor or builder.
- Licences can be checked online at your state or territory Office of Fair Trading or Consumer & Business Affairs.
- These sites also provide a link to decisions of the relevant tribunal where you can search on a builder’s or contractor’s name to see if they have been involved in legal disputes in the past.
- Always use a contract even for small jobs.
- Your contract should spell out what is covered and what is not covered.
- Make sure it specifies an alternative way of resolving disputes such as mediation as this will save you the time and expense of taking your dispute to court.
- There are simple and effective ‘short-form’ contracts available that can save all parties a lot of potential problems and expense.
- Be mindful that an ‘estimate’ is not a quote.
- If a builder or contractor can only provide an estimate ask for it to be a range with an upper and lower limit so you know the best and worst case scenarios.
- Put any variations to the contract in writing when they are agreed and have all parties sign them to limit the possibility of arguments later.
- On large projects have regular inspections of work performed by an expert to ensure that work is being performed to standard and that progress payments are being claimed appropriately.
- If you have any concerns you can use our free and anonymous Ask a Lawyer service to get information specific to your situation.
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When is a written contract required for home building or renovation?
- It depends on your state or territory. In some jurisdictions including NSW a minor works or small job contract is required where the cost of materials and labour is worth more than $1,000 and less than $5,000. In Victoria no written contract is required for jobs up to $5,000. Check with your lawyer or the state or territory Fair Trading Department for limits applicable to your circumstances.
- For projects worth more than $5,000 a major works or large job contract is generally required.
- Splitting a contract into multiple parts that are less than $5,000 to avoid this requirement is not permitted.
- For contracts worth more than $16,000 in Victoria or $20,000 in NSW a form of home warranty insurance must be taken out by the builder. If the builder or contractor responsible is unable to complete a job or repair a defect this insurance can cover the costs.
- You can use our Phone a Lawyer service for a preliminary legal consultation if you think you may need legal advice.
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What is in a building or construction contract?
- Building contracts normally have three parts:
- the written formalities set out what the terms of the contract are and the rights and responsibilities of the parties;
- the specifications list the work to be done, the items to be provided and installed by the builder or contractor and the way in which parts of the work will be completed; and
- the plans detail the work to be done in visual format with appropriate measurements and specifications.
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What is a noise code?
- A noise code applies to residential houses and accommodation that are built within ‘transport noise corridors.’
- A transport noise corridor is a major road or railway that is controlled by the state government.
- If a residential building is built within a transport noise corridor certain steps must be taken to reduce the impact of traffic noise on occupants. This is for health and amenity purposes.
- Steps taken may include using certain materials on the outside of the building including the windows, roof, floors and doors.
- To find out whether your building is or will be in a transport noise corridor you can contact your state government who often provide maps of the noise zones.
They can also advise where to find the rules and regulations for compliance.
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What are mandatory water supply systems?
- In some states and territories there may be requirements for new buildings to include mandatory water supply systems. This would likely be due to drought conditions which require builders to install water saving systems such as rain-water tanks or grey water treatment plants.
- In Queensland there were state-wide laws requiring water supply installations that were repealed in 2013. However some local governments continue to require compliance with water-saving requirements.
- You should contact your local government to see whether they require new buildings to include water supply systems.
- Even if they do not you may voluntarily choose to install a water-saving supply system. If you choose this option any installation must comply with the health and safety standards found in the Queensland Development Code.
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Does my builder need to be registered/licensed?
- This depends on which state or territory you live in and the value of the proposed works.
- For example in Victoria if the value of the works is more than $5000 the builder must be registered. This is to ensure that they have the necessary skills and will be covered by insurance.
- Check with your state or territory Fair Trading Office or Building Commission or Board to find out the minimum value of works that require a registered or licensed builder.
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What happens if I do not obtain a building permit?
- You cannot commence some types of construction without a permit or approval from your local council.
- You risk being fined on the spot, penalised, and even taken to court by your local council if you do.
- State and federal laws also apply and you can receive legal and financial penalties that are far greater than local council penalties.
- It is important to contact your local council during the planning stage to work out what permits and approvals you require.
- If your application for a permit is refused you can also ask them to explain why you did not obtain a building permit and try to negotiate a compromise, address their concerns or come to some alternative arrangement.
- You can use our Fixed Fee Quote service to call for tenders from experienced lawyers who may be able to assist you with this.
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When is a building project complete?
- A building will be considered complete when:
- all works are finished to the appropriate standard;
- any defects have been fixed; and
- a building surveyor has issued a Certificate of Final Inspection or Occupancy Permit.
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Is landscaping a garden considered building or renovation works?
- Yes it is.
- Landscaping your garden is covered by the same laws and regulations as building and renovation work.
- You should confirm with your local council whether any permits or approvals are required before you commence any work.
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