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.