The Act primarily affects two groups: building owners and builders. A building owner is the person for whom domestic building work is being or is about to be carried out (s 3(1)). This includes not only the original contracting party but any subsequent owner of the building or land, who can enforce the s 8 warranties directly (s 9 and the extended definition in s 44(3) and s 54(3)). Owners of homes (defined broadly as residential premises but excluding caravans, rooming houses, motels, nursing homes, etc. (s 3(1))) are the main beneficiaries of the consumer protections.

Builders are persons or partnerships who carry out or intend to carry out domestic building work (substituted definition in s 3(1)). For major domestic building contracts, the builder must be a registered building practitioner whose registration authorises the work (s 29). Sub-contractors are excluded from the definition of domestic building contract but can be parties to disputes (s 44(1)(c)). The Act also affects architects, building practitioners, engineers engaged in the building industry, and insurers providing domestic building insurance (ss 44, 54, 59A-62).

The Crown is bound (s 7), though s 40(7) exempts Crown contracts from progress payment limits. Public statutory authorities, building surveyors, and providers of services (gas, electricity, etc.) appear in obligations to supply reports (s 26) and in exclusions from contract price (s 24). Domestic Building Dispute Resolution Victoria, the chief dispute resolution officer, conciliation officers, assessors, the Victorian Building Authority, the Director, and VCAT all exercise statutory functions created or expanded by the Act (Part 4 Divisions 8-9, Part 5).

Subsequent purchasers benefit from warranties running with the land (s 9) and the 10-year limitation period aligned with the Building Act 1993 (s 45(3)). Display home visitors are protected by the display requirements in s 43. The Act therefore casts a wide net, capturing original and future owners, all levels of the building supply chain, regulators, insurers, and tribunals.

Builders' key duties include: implying and honouring the six warranties in s 8; limiting deposits (s 11); clearly identifying domestic building work and price in mixed contracts (s 12); complying with cost-plus restrictions (s 13); avoiding prohibited clauses (ss 14-15); not exceeding the contract price (s 16); granting reasonable site access (s 19); calculating provisional sums with reasonable care (s 20); providing detailed prime cost and provisional sum schedules or documents (s 22); supplying cost evidence (s 23); giving contract copies and reports (ss 25-26); and, for major contracts, being registered (s 29), providing the information statement (s 29A), obtaining foundations data (s 30), ensuring contracts contain all mandated contents (s 31), making delay allowances (s 32), giving variation notices (ss 37, 38), complying with staged payment limits (s 40), and ensuring insurance before demanding money (s 43B).

Owners' rights include: enforcing warranties (s 8), withdrawing during cooling-off (s 34) or if notice omitted (s 35), disputing work despite payment (s 27), receiving copies and reports (ss 25-26, 30(6)), reasonable site access (s 19), ending contracts for unforeseeable blow-outs (s 41), and triggering the full Part 4 dispute pathway. Subsequent owners inherit warranty rights (s 9). Both parties may refer disputes (s 45), participate in conciliation, request assessors (s 48C), and seek VCAT review of orders or breach notices (ss 63, 66).

The chief dispute resolution officer holds powers to assess referrals, issue certificates, direct assessors, issue or amend orders, issue breach notices, and manage the Trust Fund (ss 45C-45G, 48B, 49, 49H-49O, 49U, 51B). Assessors may enter sites, examine work, require documents, conduct tests, and report (ss 48D-48J). Conciliation officers conduct conferences and issue rules (s 46AA-46B). The Authority administers the Fund, may bring proceedings for owners, and receives breach notices (ss 50, 51, 49F, 49U(5)).

VCAT's rights include making any fair order (s 53), reviewing insurer decisions (s 60), reviewing orders and breach notices (ss 63-66), and granting owner-builder exemptions (s 68). Rights are non-excludable (s 132), though greater obligations may be imposed (s 132(2)).

Penalties are predominantly expressed in penalty units. Demanding excess deposits attracts 100 units (s 11(1)), with court power to order refunds (s 11(5)). Mixed contracts without identification attract 20 units (s 12(2)). Unauthorised cost-plus contracts or missing estimates attract 100 units each (s 13(1)-(2)). Cost escalation clauses in prohibited contracts attract 100 units (s 15(2)). Demanding more than the contract price attracts 100 units (s 16(1)). Site access denial attracts 20 units (s 19(1)). Unreasonable prime cost or provisional sum estimates attract 35 units (s 21(1)). Inadequate prime cost/provisional sum documentation attracts 50 units (s 22). Failure to supply cost evidence attracts 20 units (s 23). Late contract copy attracts 20 units plus 1 unit per day default (s 25). Failure to supply reports attracts 20 units (s 26(1)). Display home non-compliance attracts 50 units plus 1 unit per day (s 43(2)).

For major contracts, entering without registration attracts 500 units (natural person) or 2500 (body corporate) (s 29(1)-(2)). Missing contract information statement attracts 60 units (s 29A(1)). Foundations data failure attracts 50 units (s 30(2)). Non-compliant major contract contents attract 50 units (s 31(1)). Inadequate delay allowances attract 50 units (s 32(1)-(2)). Missing price variation warning attracts 50 units (s 33(2)). Progress payment breaches attract 50 units (s 40(2)-(3)). Stop work notice breach attracts 60 units (s 47D(1)). Failure to comply with assessor requirements attracts 60 units (ss 48G, 48I). Hindering assessors or self-incrimination issues are addressed by protections (ss 48H-48I). New insurance offences in s 43B attract 500/2500 units (knowledge/recklessness) or 240/1200 units (strict).

Infringement notices are available for listed offences with specified penalties (s 125 and Schedule 2), subject to the Infringements Act 2006. Continuing offences carry default penalties (s 128). The Director, inspectors under the Australian Consumer Law and Fair Trading Act 2012, the Authority, and VCAT enforce through infringement, prosecution (within 3 years, s 131), dispute resolution orders, breach notices leading to registration consequences (note to s 29), and VCAT orders. Complying with assessor recommendations or orders does not absolve contractual obligations (ss 48S, 49E). Partner liability applies where the builder is a partnership (s 130). Failure to comply does not render contracts illegal unless contrary intention appears (s 133).

The Act is inextricably linked to the Building Act 1993. Domestic building work is defined by reference to work requiring a building permit under that Act and zoned residential land (s 5(1)(e)). Registration requirements cross-reference the Building Act definition of registered building practitioner (s 29(5)). Insurance obligations reference orders under s 135 of the Building Act and compliance with s 137AA (s 43A). Foundations data and permit-related plans interact with building surveyor powers (ss 30, 31(1)(d), 37(2)). Dispute resolution orders must be notified to insurers under the Building Act (s 49F). Non-compliance with building legislation must be reported by assessors to the Authority, which may refer to councils or surveyors (s 48R). The 10-year limitation in s 45(3) mirrors s 134 of the Building Act. VCAT jurisdiction and review powers operate alongside the Victorian Civil and Administrative Tribunal Act 1998 (ss 56-57, 63-66). Owner-builder sale restrictions in s 137B of the Building Act may be exempted by VCAT under s 68.

The Australian Consumer Law and Fair Trading Act 2012 applies via s 124A, extending its Part 6.4 (except ss 152-153) and certain enforcement provisions. The Director's powers and infringement notices operate under that Act (s 125). The Act binds the Crown (s 7) and interacts with the Transfer of Land Act 1958 (s 18), Planning and Environment Act 1987 (s 5(1)(e)), Architects Act 1991, Professional Engineers Registration Act 2019, Residential Tenancies Act 1997 (home definition), and Owners Corporations Act 2006 (s 54(1)(d)).

Regulations made under s 135 can exempt classes of persons, buildings, or contracts (s 135(1)(aa)) and prescribe forms, amounts, and classes. Transitional regulations under s 138 can have retrospective effect. The Domestic Builders Fund receives VCAT fees, fines, and transfers from the Victorian Building Authority Fund (s 124(2)). The Trust Fund interacts with dispute resolution orders and party agreements (ss 49C, 51-51B). Confidentiality provisions in s 52I permit disclosure to the Director, Authority, or Building Monitor. Federal jurisdiction issues may prevent VCAT hearing (s 57(2A)).

The version incorporates amendments as at 1 July 2025, primarily from the Building Legislation Amendment (Buyer Protections) Act 2025. That Act substituted the builder definition (s 3(1)), inserted managing/arranging work into the definition of domestic building work (s 5(1)(ga)), updated the major domestic building contract threshold definition, repealed and substituted registration requirements (s 29), inserted the contract information statement obligation (s 29A), repealed the old Part 3A and inserted new insurance offences (Part 3A ss 43A-43B), made extensive changes to Part 4 dispute processes (including new powers for the chief dispute resolution officer, assessor functions, trust fund administration by the Authority rather than the Director, and updated review rights), amended VCAT powers (Part 5), updated the Director's publication obligations (s 122), transferred certain costs and functions to the Authority (s 124(3)(cb)), and inserted new transitional provisions (s 137, Schedule 1A).

These changes were made to strengthen buyer protections, close loopholes in insurance compliance, streamline dispute resolution by giving the Authority clearer operational responsibility for the Trust Fund, expand assessor roles to include estimating rectification time (s 48B(3)), allow reliance on builder statements for compliance (s 49F(3)-(4)), refine breach notice triggers (s 49U), and provide transitional mechanisms for the shift in fund administration (Schedule 1A). Earlier 2016 reforms had already replaced the old Domestic Building Disputes Tribunal with the current conciliation and assessment model; the 2025 amendments build on that by tightening insurance offences (responding to cases where builders demanded money without cover) and clarifying Authority powers. The overall trend is toward greater consumer safeguards, administrative efficiency, and alignment with building regulatory reforms.

The Act itself contains no reported court challenges within its text, but its provisions anticipate and address recurring controversies. Section 134 expressly limits Supreme Court jurisdiction in line with s 85 of the Constitution Act 1975, reflecting the policy that VCAT is the primary forum (s 57). The prohibition on contracting out (s 132) and the saving provision that non-compliance does not render contracts illegal (s 133) have been crafted to avoid common-law illegality arguments. The running of warranties with the land (s 9) interacts with the 10-year limitation aligned to the Building Act (s 45(3)), a point of ongoing practical tension for latent defects.

Dispute resolution order reviews are confined to specific grounds (description of work incorrect, time not reasonable, action unnecessary or unreasonable (s 63(3))), limiting VCAT's role to correcting clear errors rather than wholesale re-litigation. The power of VCAT to award what is fair even where a builder has not strictly complied with variation procedures (ss 37(3)(b), 38(6)(b)) addresses hardship controversies. Stop work notices (s 47A) balance evidence preservation against delay, with the non-counting of stop-work time in contractual completion periods (s 47C(4)) preventing abuse claims. The confidentiality of conciliation (s 46C) prevents admissibility disputes, with explicit carve-outs for assessor reports and disciplinary referrals.

The new 2025 insurance offences (s 43B) respond to enforcement gaps where builders received money without cover, creating strict liability alongside knowledge-based offences. The Authority's power to bring proceedings on behalf of owners (s 50) after consent (which cannot be revoked) addresses power imbalances. Controversies around self-incrimination are resolved by distinguishing documents from oral evidence (s 48H). The Act's emphasis on good faith participation (ss 45A, 45C, 46E) and the ability to note non-participation in certificates (s 46E(3)) aims to deter tactical delays. Overall, the legislation attempts to minimise litigation by providing clear statutory pathways, though the volume of procedural steps in Part 4 creates scope for procedural challenge.

Most practitioners miss that warranties run with the building (s 9), so a subsequent purchaser can sue the original builder years later without privity. The 10-year limitation (s 45(3)) runs from occupancy permit, final inspection, or practical completion (presumed at handover or last attendance), not from discovery of the defect. Builders frequently overlook that foundations data must be obtained before signing major contracts where footings are involved (s 30), and failure prevents later claims for additional amounts that could reasonably have been ascertained (s 30(7)).

Variation procedures are traps: a builder who proceeds without the exact signed consent or qualifying building notice loses recovery rights unless VCAT finds exceptional circumstances or significant hardship and that it would not be unfair to the owner (ss 37(3), 38(6)). The statutory progress payment table (s 40) is mandatory unless the parties expressly opt out in the regulated manner; exceeding it is an offence and may lead to refund orders. Cost-plus contracts are more restricted than many realise; even GST clauses added after 8 November 1999 had retrospective validation only in narrow windows (s 13A).

The cooling-off period is 5 clear business days after receiving the signed copy (s 34), not from signing, and the notice must be conspicuous and in approved form (s 31(1)(n)). Display home contracts bind the builder to the same standards unless differences are expressly identified (s 43(3)-(4)). In disputes, a certificate of conciliation is mandatory before VCAT proceedings (s 56), and courts must stay actions that could be heard by VCAT if no oral evidence has been taken (s 57). Assessors can cut into work (s 48E), and refusal of site access by an occupier can be treated as bad faith, affecting the certificate (s 48D(4)). The Trust Fund mechanism allows money to be held pending compliance (s 49C(1)(b)), but release requires either party consent or Authority determination after notice and review period (s 49G). Non-compliance with a record of agreement can lead to the entire agreement ceasing effect (s 46H). Finally, the new insurance offence is strict liability for simply not ensuring cover before demanding money (s 43B(2)), separate from the knowledge/recklessness tier.

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.