Builders should begin by confirming they are registered for the relevant category before entering any major domestic building contract (s 29). Provide the approved contract information statement before signing (s 29A). For any contract involving footings or potential footing impact, obtain all reasonable foundations data, having regard to Standards Australia publications, drainage plans, engineer computations, and site fall (s 30). Draft the contract to include every item required by s 31(1): written form, all terms, detailed description, plans sufficient for permit, party details, registration numbers (and partnership details if applicable), start/finish dates with explicit delay allowances under s 32, price (or cost-plus method), date, insurance details, conspicuous cooling-off notice, definitions section cross-referenced, the s 8 and s 20 warranties, Director-approved checklist, and any regulatory requirements. Ensure the contract is signed by both parties (s 31(2)).
Limit deposits strictly (s 11). Identify and price domestic building work separately in mixed contracts (s 12). Avoid or strictly comply with cost-plus, escalation, and arbitration prohibitions (ss 13-15). State any exclusions for services or permits immediately after the price with estimates (s 24). Provide the owner with a signed legible copy within 5 business days (s 25) and any reports or notices received (s 26). For prime cost items and provisional sums, use separate schedules in major contracts showing description, breakdown, quantities, unit costs, and any excess calculation method (s 22); supply evidence of actual costs promptly (s 23). Calculate sums with reasonable care (ss 20-21).
During the works, allow reasonable access and notify in writing within 5 business days of any owner interference causing delay (s 19). For variations, follow the exact notice and consent process in ss 37-38; do not proceed without signed consent attached to the notice or qualifying building order circumstances. Issue written variation notices describing the change, reason, effect on the whole project, permit implications, delay estimate, cost, and contract price impact. Adjust contract references automatically under s 39. Claim only staged payments permitted by s 40 or regulated alternatives. Do not demand final payment until completion per plans plus permit or final inspection certificate (s 42).
If a dispute arises, participate in good faith. Respond to referrals, provide information when requested (s 45B), attend conciliation, and comply with any record of agreement (s 46F). If an assessor is appointed, permit site entry, produce documents, and avoid obstruction (ss 48D-48I). Comply with any dispute resolution order within the specified reasonable time (s 49B(4)), giving notice of compliance (ss 49P-49Q). If insurance is required, ensure coverage before demanding any money (s 43B). Keep records of all foundations data, notices, consents, and cost evidence.
Owners should read the contract information statement and obtain independent advice before waiving cooling-off rights. Inspect plans and the draft contract at display homes (s 43). Keep written records of all communications. If defects appear, refer the dispute within the 10-year window using the approved form (s 45). Participate in conciliation and assessments; consent to tests where reasonable (s 48L). Comply with any conditions in dispute resolution orders before expecting builder performance (s 49B(2)). Use the Trust Fund where agreed or ordered. For compliance audits, both parties should retain all notices, reports, assessor findings, and payment records for at least the limitation period.
Regularly check the Director's published forms and the chief dispute resolution officer's approved documents on the Authority website (s 122). Where regulations prescribe classes of cost-plus contracts or higher deposit amounts, verify current values. In all cases, document compliance with each statutory precondition to preserve recovery rights and avoid offence liability.