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What should I check before signing a building contract?

The short answer

That the builder's licence is current and covers the work, that warranty insurance is in place where your state requires it, and that the contract fixes the scope, the price, the progress payments and how variations are handled.

TradieAnswers editorial · written in-house and sourced to the authorities listed below

Checked against 5 published sources, listed in full at the end of this page. How we source this

Residential building work is the most heavily regulated consumer transaction most people will enter into, and the protections only work if the paperwork is right at the start. Above a dollar threshold, which differs by state, a written contract in a prescribed form is mandatory, not optional.

Before you sign

  1. Check the licence on your state's register yourself. Do not accept a photograph of a card. Confirm the class covers this type and value of work, and that it is current.
  2. Check warranty insurance. Most states require domestic building insurance above a threshold, and it protects you if the builder dies, disappears or becomes insolvent. It should be in place before you pay a deposit.
  3. Read the scope as a stranger would. Anything not written down is not included. 'Make good' and 'to builder's standard' are the phrases that cause disputes.
  4. Check the deposit against your state's cap. States limit how much can be taken upfront, and a demand above the cap is a warning sign in itself.
  5. Check progress payments are tied to completed stages, not to dates. Paying ahead of work done is how people end up exposed.
  6. Check the variations clause. Variations are normal; what matters is that they must be in writing and priced before the work is done.

The two clauses to read twice

  • Extensions of time, what entitles the builder to more time, and whether you are notified.
  • Dispute resolution, which body hears a dispute in your state, and what you must do first.

Sources

Every source below was fetched and its response recorded on the date shown. Where a government site blocks automated clients, that is noted rather than reported as a successful check.

  1. Building and renovating · Consumer Affairs VictoriaChecked 2026-08-10 · responded 200 OK
  2. Building or renovating a home · NSW GovernmentChecked 2026-08-10 · responded 200 OK
  3. QBCC · Queensland Building and Construction CommissionChecked 2026-08-10 · responded 200 OK
  4. Building and Energy · Department of Energy, Mines, Industry Regulation and Safety (WA)Checked 2026-08-10 · responded 200 OK
  5. Consumer rights and guarantees · Australian Competition and Consumer CommissionChecked 2026-08-10 · responded 200 OK

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