Prescribed offences and modified penalties (section 31B(2) and (4)) 4
Prescribed form of infringement notice (section 31B(3)) 5
Prescribed form of notice withdrawing infringement notice (section 31B(7)) 5
Schedule 1
Schedule 9 — Prescribed forms
Notes
Compilation table 18
Defined terms
Home Building Contracts Act 1991
Home Building Contracts Regulations 1992
1. Citation
These regulations may be cited as the Home Building Contracts Regulations 1992.
2. Commencement
These regulations come into operation on the day on which the Home Building Contracts Act 1991 comes into operation.
2A. Prescribed amounts for the purposes of “home building work contract” (section 3(1))
For the purposes of the definition of “home building work contract” in section 3(1) of the Act —
(a) the prescribed amount for paragraph (b)(ii) of the definition is $7 500; and
(b) the prescribed amount for paragraph (b)(iii) of the definition is $500 000.
[Regulation 2A inserted: Gazette 29 Jun 2007 p. 3191.]
3. Form of notice prescribed
The form of notice set out in Schedule 1 is prescribed for the purpose of section 4(2) of the Act.
Section 1 - Home Building Contracts Regulations 1992 - Home Building Contracts Regulations 1992 | Zoe
3A. Prescribed payment for cabinetry work (section 10(1)(a)(ii))
(1) In this regulation —
cabinetry work means —
(a) the manufacture and installation of kitchen, bathroom, laundry and other custom‑made cabinets and fitments; and
(b) the refurbishment or repair of kitchen, bathroom, laundry and other fitted cabinets and fitments; but
(c) does not include the purchase and installation of off‑the‑shelf cabinets;
off‑site work, in respect of home building work, means work performed at a place that is not the place at which the home building work is to be finally installed or constructed under the contract.
(2) This regulation applies only if —
(a) a builder enters into a home building work contract in respect of cabinetry work; and
(b) the value of the off‑site work to be performed under the contract is more than 50% of the total amount payable under the contract.
(3) For the purposes of section 10(1)(a)(ii), the builder may, before the commencement of the home building work, demand payment of a deposit of not more than 20% of the total amount payable to the builder under the contract.
[Regulation 3A inserted: SL 2020/66 r. 4.]
[4, 4A. Deleted: Gazette 2 Sep 2003 p. 3924.]
5. Home indemnity insurance maximum excess
A policy of insurance under Part 3A of the Act may provide for an amount of $500 or a lesser amount for which the insurer is not liable on a claim under the policy.
[Regulation 5 inserted: Gazette 24 Jan 1997 p. 544.]
[6. Deleted: Gazette 8 Apr 2003 p. 1104.]
6A. Prescribed building service contractors: section 25A
(1) For the purposes of paragraph (b) of the definition of builder in section 25A the following classes of building service contractor are prescribed —
(a) building contractor (individual);
(b) building contractor (partnership);
(c) building contractor (company).
(2) For the purposes of paragraph (d)(i) of the definition of owner‑builder in section 25A the following classes of building service contractor are prescribed —
(a) building contractor (individual);
(b) building contractor (partnership);
(c) building contractor (company).
[Regulation 6A inserted: Gazette 26 Aug 2011 p. 3478.]
7. Prescribed minimum amount for the purposes of section 25A
For the purposes of section 25A of the Act, the minimum amount is prescribed to be $20 000.
[Regulation 7 inserted: Gazette 17 Jul 1998 p. 3762; amended: Gazette 29 Jun 2007 p. 3191.]
7A. Prescribed amount of insurance for loss of deposit: builder (section 25D(1)(a)(i))
For the purposes of section 25D(1)(a)(i) of the Act, the prescribed limit is $40 000.
[Regulation 7A inserted: SL 2022/172 r. 4.]
7B. Prescribed minimum amount of insurance cover: builder (section 25D(1)(e)(i))
For the purposes of section 25D(1)(e)(i) of the Act, an amount of $200 000 is prescribed.
[Regulation 7B inserted: SL 2022/172 r. 4.]
7C. Prescribed minimum amount of insurance cover: owner‑builder (section 25G(1)(c)(i))
For the purposes of section 25G(1)(c)(i) of the Act, an amount of $200 000 is prescribed.
[Regulation 7C inserted: SL 2022/172 r. 4.]
8. Prescribed offences and modified penalties (section 31B(2) and (4))
(1) For the purposes of section 31B(2) of the Act, an offence against a provision of the Act specified in column 2 of the Table to this regulation is an offence for which an infringement notice may be given.
(2) For the purposes of section 31B(4) of the Act, the amount specified in column 3 of the Table to this regulation opposite a provision of the Act specified in column 2 of that Table is the modified penalty for an offence against that provision.
Table
Column 1<br>Item
Column 2<br>Provision of Act
Column 3<br>Modified penalty
1.
section 4(4)
$400
2.
section 5(2)
$100
3.
section 5(3)
$1 000
4.
section 7(3)
$100
5.
section 10(1)
$1 000
6.
section 10(5)
$1 000
7.
section 12(1)
$1 000
8.
section 13(1)
$1 000
9.
section 14(1)
$1 000
10.
section 25C(1)
$2 000
11.
section 25C(2)
$500
12.
section 25F
$2 000
13.
section 26(1)
$200
[Regulation 8 inserted: Gazette 31 Jul 2001 p. 3947‑8.]
9. Prescribed form of infringement notice (section 31B(3))
For the purposes of section 31B(3) of the Act, the form of an infringement notice is Form 2 in Schedule 9.
[Regulation 9 inserted: Gazette 31 Jul 2001 p. 3948.]
10. Prescribed form of notice withdrawing infringement notice (section 31B(7))
For the purposes of section 31B(7) of the Act, the form of a notice stating that an infringement notice has been withdrawn is Form 3 in Schedule 9.
[Regulation 10 inserted: Gazette 31 Jul 2001 p. 3948.]
Schedule 1
[r. 3]
Home Building Contracts Act 1991
NOTICE FOR THE HOME OWNER
This notice
A builder must give a copy of this notice to you, as the owner, before you sign a contract for home building work that is covered by the Home Building Contracts Act 1991.
This notice explains relevant provisions of that Act as required by section 4(2). The Act itself should be referred to for the exact text. A copy of the Act can be accessed electronically at https://www.legislation.wa.gov.au.
Who are “owners” and “builders”?
In this notice “owner” means the person for whom the home building work is to be done and “builder” means the person who, in the course of business, is to do the work or arrange for it to be done.
What the Act covers
The Act deals with contracts for home building work where the contract price is more than $7 500 and less than $500 000. The Act also applies to contracts, within that price range, for associated work (e.g. swimming pools, carports and landscaping) and for alterations. It makes some provisions that are implied in all contracts, and also states what is not allowed in any contract.
Under the Act a builder must not do anything in connection with a contract that is “unconscionable, harsh or oppressive”. Furthermore, neither you nor the builder may do anything that is “misleading or deceptive”.
The Act deals with “cost plus” contracts only to a limited extent — see later in this notice under “Special rules for cost plus contracts”.
You may seek appropriate redress through the Building Commissioner for breaches of the contract and the Act, including for unconscionable or misleading conduct — see later in this notice under “Disputes”. The builder’s rights are similar, but do not extend to any unconscionable behaviour by you.
A person can be prosecuted or fined for not complying with some provisions of the Act. Some of these provisions apply to owners as well as builders.
Rights conferred by the Act cannot be taken away, diminished or waived and it is forbidden to make any agreement or arrangement to bypass the Act.
Home indemnity insurance
Subject to the exceptions set out below, it is compulsory for all home building work the cost of which is more than $20 000, except associated work alone (e.g. swimming pools, carports, pergolas, sheds, fencing or landscaping), to be covered by home indemnity insurance.
The exceptions are —
(a) where no building permit is required for the work; or
(b) if a building permit is required for the work — where registration as a builder is not required in order to carry out the work.
Home indemnity insurance is also compulsory for associated work if that work is performed under a contract that includes construction or renovation of a residence and the total cost of all the building work is more than $20 000.
Before commencing work or demanding any payment (including a deposit) from you, the builder must take out home indemnity insurance and give you a certificate confirming the existence of the insurance cover.
There may be periods when a builder is exempt from the requirement to take out home indemnity insurance. During, and in some circumstances after, one of these periods a builder must give you a notice in a prescribed form.
Home indemnity insurance will protect you and any successive owners against financial loss due to the insolvency, death, cessation in existence, disappearance or non‑registration on financial grounds of the builder that results in —
(a) loss of deposit (up to a limit of $40 000);
(b) the non‑completion of the building work; or
(c) the failure to rectify faulty or unsatisfactory building work.
Home indemnity insurance generally does not cover an owner for any money paid in advance other than a deposit. In any event it is a breach of the Act for a builder to request and receive such a payment — see later in this notice under “Provisions that are not allowed”.
Note that, with building work carried out under a cost plus contract, the builder is required to take out home indemnity insurance to cover only the risk specified in (c) above — see later in this notice under “Special rules for cost plus contracts”.
Claims may be made under a home indemnity insurance policy at any time before the end of a period of 6 years after the day of practical completion of the building work.
Some home building work is exempt from the requirement to obtain home indemnity insurance. If your work is exempt your builder should give you a notice informing you that this is so. The Building Commissioner can provide you with further information in this respect.
Contract — steps to be followed
Everything agreed to between you and the builder must be set out in a written contract. The contract must be dated and signed by both you and the builder or your respective representatives***.*** If this is not done you may terminate the contract — see later in this notice under “Termination of contract”.
You must be given a copy of the contract as soon as is practicable after it has been signed and before the building work starts.
It is the builder’s duty to see that all these steps are taken.
Special rules for cost plus contracts
A “cost plus” contract is one under which the builder is entitled to recover actual costs incurred plus an extra amount for profit. A cost plus contract —
(a) must be headed “cost plus contract”; and
(b) must contain a statement in which both you and the builder acknowledge that it is a cost plus contract and that the Act does not apply to it, except in relation to the requirement for a builder to take out home indemnity insurance in the situation explained just below.
If the contract does not comply with these requirements you may terminate the contract — see later in this notice under “Termination of contract”.
As mentioned above, the Act does not in general apply to a cost plus contract. However, if you have a complaint about the building work carried out under such a contract, you can make a complaint to the Building Commissioner about the work — see later in this notice under “Disputes”.
The builder is required to take out home indemnity insurance in relation to a cost plus contract to protect you and any successive owners against financial loss where an order made against the builder is not enforceable due to the insolvency, death, cessation in existence, disappearance or non‑registration on financial grounds of the builder.
Provisions that are not allowed
The builder cannot include in a contract a requirement for you to make a payment other than —
(a) a deposit before the work begins of —
(i) if the Home Building Contracts Regulations 1992 regulation 3A applies to the contract — no more than 20% of the contract price; or
(ii) otherwise — no more than 6.5% of the contract price;
and
(b) progress payments after the work begins for work done or goods supplied.
If any such provision is included you may terminate the contract — see later in this notice under “Termination of contract”.
The builder may also be prosecuted and fined for demanding, or receiving, any payment after the work begins other than a progress payment as set out in (b) above.
The builder must not include provisions in the contract that are “unconscionable, harsh or oppressive”. If you think this has occurred, you may make a complaint to the Building Commissioner — see later in this notice under “Disputes”.
Prime cost/Provisional sum
Where a contract refers to “prime costs” it means fittings or equipment that may vary in price (e.g. bathroom tiles). The builder must estimate the cost of such items at or above the lowest amount that they could reasonably cost and the cost must not be understated in the contract. If it is, the builder may be prosecuted and fined. This also applies to estimates for “provisional sums” such as site works.
Contract price must be fixed
A contract must not contain a “rise and fall” clause. A rise and fall clause allows the builder to pass on price increases for labour or materials that occur after the contract is signed.
However, the builder can include a clause in the contract that allows for a price increase to cover an increase in actual costs that results from —
(a) government taxes or charges increasing after the contract is signed;
(b) the builder having to comply with a State or Commonwealth law; or
(c) work not starting within 45 working days after the contract is signed if the delay is not caused by the builder.
If (c) applies and the price rise is more than 5%, you may terminate the contract within 10 working days of receiving written notice of the increase — see later in this notice under “Termination of contract”. You can also choose to make a complaint to the Building Commissioner within this period.
Varying the contract
Steps to be followed
All changes to the building work to be carried out under a contract, including the cost of the change, must be put in writing and be dated and signed by both you and the builder or your respective representatives.
A copy must be given to you as soon as is possible after both you and the builder have signed, and before the start of the work that results from the change.
The builder must ensure that these steps are taken.
Exceptions
Certain changes may be made without these steps being taken, namely —
(a) changes resulting from directions given by a building surveyor or other person acting under a written law;
(b) changes arising from unforeseen circumstances (but this does not include unforeseen labour or material cost increases).
Note also the changes by way of price increase that are referred to above under the heading “Contract price must be fixed” and below under the heading “Where approvals are delayed”.
Protection that you have as an owner
If any change referred to in paragraph (a) or (b) immediately above occurs, the builder must give you certain information in writing — see section 8(1), (2) and (3) of the Act. Note that if you and the builder have a dispute about whether particular circumstances are “unforeseen circumstances” and you wish to make a complaint to the Building Commissioner, you must do so within 10 working days after this information is given to you.
Where approvals are delayed
A contract is conditional on —
(a) a building permit and the Water Corporation’s approval being obtained within 45 working days from the date of the contract; and
(b) the written acceptance within that period by both you and the builder of any condition attached to the building permit or the Water Corporation approval that will vary the contract.
Note that contracts that are only for associated work (e.g. swimming pools, carports and landscaping) are not subject to these conditions.
Both you and the builder must do what you reasonably can to ensure that these conditions are met. If they are not met, the rights of the parties depend on whose fault it was that the condition was not met within the 45 day period.
Builder at fault
Owner at fault or neither or both parties at fault
Contract remains in force on the same terms and conditions unless you and the builder agree otherwise.
Contract remains in force on the same terms and conditions until you and the builder agree otherwise but —
(i) the builder may by written notice increase the contract price;
(ii) if the increase exceeds 5% you may terminate the contract within 10 working days after receiving the notice provided you compensate the builder for all reasonable costs incurred up to the date of termination — see below under “Termination of contract”;
(iii) you may, within 3 years after receiving the notice, make a complaint about the matter to the Building Commissioner.
Defects — making good
Any defect in work done or materials supplied under a contract must be made good by the builder if the builder is notified of the defect within 4 months (or a greater period if provided for in the contract) after practical completion of the building work.
However, you and the builder may agree in the contract that particular defects are excluded from this provision.
Inspection
A builder must not prevent you (or a person authorised in writing to represent you) or your lending institution from inspecting the building work as allowed by the contract or by regulations under the Act. A contract cannot restrict inspections except by limiting them to normal working hours or forbidding inspections that would unreasonably impede or interfere with the building work.
Termination of contract
In various places above it is stated that you can terminate the contract for a particular reason. To do this you must give notice in writing to the builder before the building work is finished.
If a contract is terminated, you may make a complaint to the Building Commissioner claiming financial adjustments between you and the builder.
Disputes
1. Contracts generally
You can make a complaint to the Building Commissioner under the Building Services (Complaint Resolution and Administration) Act 2011 if there is a dispute between you and a builder about a contract that falls within the Act. Such a complaint to the Commissioner must be made within 3 years from when you became entitled to take legal action.
There are monetary limits on orders that can be made under that Act. The limits are $100 000 if an order is made by the Building Commissioner and $500 000 if the order is made by the State Administrative Tribunal following a referral by the Building Commissioner.
2. Standard of services
You can make a complaint to the Building Commissioner under the Building Services (Complaint Resolution and Administration) Act 2011 about certain building services not being carried out in a proper and proficient manner or being faulty or unsatisfactory.
Such a complaint to the Commissioner must be made within 6 years from the time the building service is completed. The building service is completed —
(a) if the building service is carried out under a building permit, when a notice of cessation or a notice of completion in relation to the permit has been given to the relevant permit authority;
(b) otherwise, on the date on which the building service was last carried out.
There are monetary limits on orders that can be made under that Act. The limits are $100 000 if an order is made by the Building Commissioner and $500 000 if the order is made by the State Administrative Tribunal following a referral by the Building Commissioner.
3. Procedure
Before you make a complaint to the Building Commissioner about a contract that falls within this Act, written notice that you propose to make a complaint must be given to the other party together with a description of the remedy that you propose to seek and the evidence on which you propose to rely. You must provide a copy of that notice to the Building Commissioner at the time of making a complaint.
[Schedule 1 inserted: Gazette 2 Sep 2003 p. 3924‑30; amended: Gazette 29 Jun 2007 p. 3191‑2; 8 May 2012 p. 1888-91; 12 Feb 2013 p. 921; SL 2020/66 r. 5; SL 2022/172 r. 5; SL 2025/144 r. 6.]
[Schedules 2‑8 deleted: Gazette 2 Sep 2003 p. 3930.]
Schedule 9 — Prescribed forms
[r. 6A, 9, 10]
[Heading inserted: Gazette 31 Jul 2001 p. 3948.]
[Form 1 deleted: Gazette 26 Aug 2011 p. 3478.]
Form 2
Home Building Contracts Act 1991
Home Building Contracts Regulations 1992
INFRINGEMENT NOTICE
No. of notice: ..................................
Date of service: ...............................
To: ........................................................................................................ (name)of .......................................................................................................... (address)............................................................................. Postcode .................It is alleged that at about ..................... a.m./p.m. on the ............... day of ................................................... at.................................................................................................................................................................you committed the offence described below and are liable for the modified penalty stated.Name and title of authorised person giving this notice: ......................Signature: .............................................................................................
Section of Act Description of offence Modified penalty
If you wish to have a complaint of the alleged offence heard and determined by a court, you need not reply to this notice or pay the modified penalty, but in that case court proceedings may be taken against you and you may be liable for costs and a fine for the offence.
If you do not wish to have a complaint of the alleged offence heard and determined by a court, you may pay the modified penalty within 28 days after the date of this notice. If the modified penalty is not paid within that period you will be taken to have declined to pay it, and court proceedings may be taken against you and you may be liable for costs and a fine for the offence.
Payment may be made by either — (a) posting this form and a cheque or money order, made payable to the Building Services Board for the amount of the modified penalty stated in item 2, to the Corporate Services Manager, Building Services Board, 18 Harvest Terrace, West Perth WA 6005; or (b) delivering this form, and paying the amount of the modified penalty stated in item 2, to an authorised person* at the Building Services Board, 18 Harvest Terrace, West Perth WA 6005.[*Authorised persons for the purposes of paragraph (b) are the Registrar, the Deputy Registrar and the Corporate Services Manager of the Building Services Board.
[Form 2 inserted: Gazette 31 Jul 2001 p. 3950; amended: Gazette 26 Apr 2019 p. 1222.]
Form 3
Home Building Contracts Act 1991
Home Building Contracts Regulations 1992
WITHDRAWAL OF INFRINGEMENT NOTICE
No. of notice: .................................
Date of service: ..............................
To: ................................................................................................................ (name)of .................................................................................................................. (address)Infringement notice no. .................... served on you on the ................... day of ............................. for the offence described below has been withdrawn.The modified penalty: * has been paid and a refund is enclosed. * has been not been paid and should not be paid. [* Delete as appropriate.]Name and title of authorised person giving this notice: ......................................Signature: ......................................................................................................
Section of Act Description of offence Modified penalty
[Form 3 inserted: Gazette 31 Jul 2001 p. 3951.]
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Notes
This is a compilation of the Home Building Contracts Regulations 1992 and includes amendments made by other written laws. For provisions that have come into operation, and for information about any reprints, see the compilation table.
Compilation table
Citation
Published
Commencement
Home Building Contracts Regulations 1992
3 Apr 1992 p. 1465‑8
4 Apr 1992 (see r. 2 and Gazette 3 Apr 1992 p. 1461)
Home Building Contracts Amendment Regulations 1994
22 Mar 1994 p. 1253‑96
22 Mar 1994
Home Building Contracts Amendment Regulations 1996
8 Nov 1996 p. 6249‑64
8 Nov 1996
Home Building Contracts Amendment Regulations 1997
24 Jan 1997 p. 544‑6
1 Feb 1997 (see r. 2)
Home Building Contracts Amendment Regulations 1997
11 Jul 1997 p. 3583‑617
11 Jul 1997
Reprint of the Home Building Contracts Regulations 1992 as at 17 Oct 1997 (includes amendments listed above)
Home Building Contracts Amendment Regulations 1998
6 Feb 1998 p. 625‑41
6 Feb 1998
Home Building Contracts Amendment Regulations (No. 2) 1998
17 Jul 1998 p. 3761‑2
17 Jul 1998
Home Building Contracts Amendment Regulations 2000
3 Mar 2000 p. 1011‑13
3 Mar 2000
Home Building Contracts Amendment Regulations 2001
31 Jul 2001 p. 3947‑51
1 Aug 2001 (see r. 2 and Gazette 31 Jul 2001 p. 3907)
Reprint of the Home Building Contracts Regulations 1992 as at 7 Jun 2002 (includes amendments listed above)
Home Building Contracts (Home Indemnity Insurance — Multi‑storey Multi‑unit Developments Exemption) Amendment Regulations 2003 r. 10
8 Apr 2003 p. 1099‑104
9 Apr 2003 (see r. 2)
Home Building Contracts Amendment Regulations 2003
2 Sep 2003 p. 3923‑30
2 Sep 2003
Home Building Contracts Amendment Regulations 2007
29 Jun 2007 p. 3190‑2
r. 1 and 2: 29 Jun 2007 (see r. 2(a)); Regulations other than r. 1 and 2: 2 Jul 2007 (see r. 2(b)(i))
Reprint 3: The Home Building Contracts Regulations 1992 as at 1 Feb 2008 (includes amendments listed above)
Home Building Contracts Amendment Regulations 2011
26 Aug 2011 p. 3477‑8
r. 1 and 2: 26 Aug 2011 (see r. 2(a)); Regulations other than r. 1 and 2: 29 Aug 2011 (see r. 2(b) and Gazette 26 Aug 2011 p. 3475‑6)
Home Building Contracts Amendment Regulations 2012
8 May 2012 p. 1888-91
r. 1 and 2: 8 May 2012 (see r. 2(a)); Regulations other than r. 1 and 2: 9 May 2012 (see r. 2(b))
Home Building Contracts Amendment Regulations 2013
12 Feb 2013 p. 920-1
r. 1 and 2: 12 Feb 2013 (see r. 2(a)); Regulations other than r. 1 and 2: 13 Feb 2013 (see r. 2(b))
Commerce Regulations Amendment (Infringement Notices) Regulations 2019 Pt. 5
26 Apr 2019 p. 1209-22
27 Apr 2019 (see r. 2(b))
Consumer Protection Regulations Amendment Regulations 2019 Pt. 3
24 Dec 2019 p. 4416‑20
1 Jan 2020 (see r. 2(b) and Gazette 24 Dec 2019 p. 4415)
Home Building Contracts Amendment Regulations 2020
SL 2020/66 26 May 2020
r. 1 and 2: 26 May 2020 (see r. 2(a)); Regulations other than r. 1 and 2: 27 May 2020 (see r. 2(b))
Home Building Contracts Amendment Regulations 2022
SL 2022/172 21 Oct 2022
r. 1 and 2: 21 Oct 2022 (see r. 2(a)); Regulations other than r. 1 and 2: 1 Dec 2022 (see r. 2(b))
Building Regulations Amendment Regulations 2025 Pt. 3
SL 2025/144 6 Aug 2025
1 Sep 2025 (see r. 2(b))
Defined terms
[This is a list of terms defined and the provisions where they are defined. The list is not part of the law.]
This work is licensed under a Creative Commons Attribution 4.0 International Licence (CC BY 4.0). To view relevant information and for a link to a copy of the licence, visit www.legislation.wa.gov.au.