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Major Domestic Building Contract (MDBC) / Residential Building Contract

VICNSWQLD

Form number: VIC: No single prescribed form — Consumer Affairs Victoria provides a free model 'Building contract for new homes' template (Word document); NSW: Written contract required under Home Building Act 1989 (no single prescribed form — NSW Fair Trading provides guidance); QLD: No single prescribed form

A written residential building contract that must be used when a builder undertakes domestic building work above the statutory threshold — in Victoria work over $10,000 requires a written contract complying with the Domestic Building Contracts Act 1995, with specific mandatory content including cooling-off rights, warranties, and progress payment terms.

Issuing authority

VIC: Consumer Affairs Victoria (Domestic Building Contracts Act 1995, as amended by Domestic Building Contracts Amendment Act 2025); NSW: NSW Fair Trading (Home Building Act 1989); QLD: Queensland Building and Construction Commission (QBCC Act)

Official source

consumer.vic.gov.au

Cost

Free (model contract templates are provided at no cost by Consumer Affairs Victoria and NSW Fair Trading)

Deadline

Must be signed before work commences or any deposit is paid

How to apply

  1. Determine whether your work meets the threshold: VIC — building work over $10,000 (major domestic building contract); NSW — residential building work over $20,000; QLD — residential building work subject to QBCC Act requirements
  2. Download and use the relevant free model contract: VIC — Consumer Affairs Victoria's 'Building contract for new homes' (Word template, available at consumer.vic.gov.au); NSW — NSW Fair Trading provides guidance and checklists; ensure the contract is in plain English
  3. Ensure the contract includes all mandatory elements: full names and addresses of both parties; builder's licence/registration number; contract price and a progress payment schedule; effective date (both parties signed); description of the work with plans and specifications sufficient for a building permit
  4. Include the five-day cooling-off period notice (VIC); implied warranties statement; an approved checklist; and where the contract value exceeds $16,000 (VIC) or $20,000 (NSW), the home building insurance (HBCF/DBI) certificate details
  5. Check that the contract does not include prohibited clauses: no compulsory arbitration clauses, no caveats, no waiver of statutory warranties, no 'practical completion' terminology (VIC), no cost escalation clauses (unless contract exceeds $500,000 in VIC or $1M from December 2026 reforms)
  6. Both parties must sign and date the contract before any work commences or any deposit is paid — the builder must provide a signed copy to the owner within 5 business days
  7. Retain a copy of the signed contract throughout the project — it governs progress payments, variations, delay provisions, and dispute resolution

Related topics

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