Contracts & Disputes questions

Payment terms are not set by building standards. They come from your contract and the laws of your state. Progress payments are usually tied to completed stages of work, and the builder or trade submits a claim for each stage. Retention is an amount held back until work is complete or defects are fixed. Whether it is allowed, how much, and how it is held differs by state and contract, and some states have rules. Some states cap deposits on domestic building contracts. Security of payment laws exist in every state and territory with strict deadlines for responding to a claim, and NSW has applied its law to owner occupier contracts, so act quickly on any claim that refers to them and get legal advice.

In MyBuildHub: use Progress Payments to record each claim against the contract, and compare the amount claimed with the work completed before you pay.

Check yourself: NSW security of payment changes, your state fair trading body, and a lawyer.

This is general information only. It is not legal advice, and MyBuildHub is not a law firm. Laws differ by state and change over time. Speak to a lawyer or your state regulator about your situation before you sign or act.

Start by writing to the other party and following the dispute steps in your contract. If that fails, your state consumer affairs or fair trading body can often help with mediation, and each state has a tribunal that can hear building disputes. These are NCAT in NSW, VCAT in Victoria, QCAT in Queensland, SAT in WA, SACAT in SA, TASCAT in Tasmania, ACAT in the ACT and NTCAT in the NT. Keep the contract, quotes, variations, photos, messages and payment records. Time limits can apply, and security of payment notices have very short deadlines. Get legal advice before taking formal steps.

In MyBuildHub: keep every contract, variation, invoice, photo and message in your project documents so you can produce a clear record.

Check yourself: your state consumer affairs or fair trading body, the tribunal for your state, and a lawyer.

This is general information only. It is not legal advice, and MyBuildHub is not a law firm. Laws differ by state and change over time. Speak to a lawyer or your state regulator about your situation before you sign or act.

MyBuildHub cannot tell you what makes an agreement legally binding, and the requirements depend on your state and the value of the work. In general, a written agreement should name the parties and licence details, describe the scope and price, set out payment stages, deal with variations, start and finish dates, insurance, defects and how disputes are handled. Some states require specific content or notices above a set value. Have a lawyer prepare or review any agreement of significance before work starts, and check the trade's licence on your state's register.

In MyBuildHub: use the MyBuildHub templates as a starting point only, then have the final agreement reviewed and saved to your project documents.

Check yourself: your state consumer affairs or fair trading body, your state licensing register, and a lawyer.

This is general information only. It is not legal advice, and MyBuildHub is not a law firm. Laws differ by state and change over time. Speak to a lawyer or your state regulator about your situation before you sign or act.

An ABN, invoice or the label 'contractor' does not decide a worker's legal status. Employment, tax, superannuation and workers compensation can apply different tests. Some contractors can be treated as workers for particular purposes, subject to the relevant rules and exceptions. Before directly engaging labour, obtain advice about the arrangement, insurance and payment obligations. If you have a head builder, confirm who engages the workers. Check workers compensation with the authority for your state or territory.

Official sources:

• FWO Contractors in building and construction
• ATO Super for independent contractors
• SWA Regulator and workers compensation directory

General information only. Requirements vary by state or territory and change over time, so check the current rules for your location.

What a contract can or must include depends on your state and the contract type, so this is general information only. Matters commonly dealt with in contracts include the start and completion dates, the events that may allow an extension of time, how and when notice of a delay must be given, and what happens if either side causes a delay. Because timing clauses can have legal and financial consequences, have a lawyer review them before you sign. Keep a written record of delays and their causes as they happen.

In MyBuildHub: record the agreed dates on the Timeline, update it when a delay occurs, and keep notices in your project documents.

Check yourself: your state consumer affairs body, and a lawyer.

This is general information only. It is not legal advice, and MyBuildHub is not a law firm. Laws differ by state and change over time. Speak to a lawyer or your state regulator about your situation before you sign or act.

A fixed price contract states a set price, although certain items such as prime cost items, provisional sums and variations can change the final amount. A cost plus contract pays the actual costs of the work plus an agreed amount for profit and overheads, so the final price is not known at signing. Day rate work charges for time on an agreed rate, plus materials if agreed, so the final price is also not known at signing. Several states regulate cost plus contracts for domestic building work. Consumer Affairs Victoria states a threshold above which cost plus contracts are permitted, Western Australia sets special rules for cost plus contracts, and South Australia's regulator publishes separate guidance on price increases in home building contracts. Check your state before agreeing to cost plus, and get a lawyer to review the contract.

In MyBuildHub: if you use cost plus, record the agreed margin and any cap in the contract, and compare invoices to your budget line as they arrive. For fixed price, track variations separately so you can see how the price has moved.

Check yourself: Consumer Affairs Victoria, WA Building Contracts Act notice, SA guide to price increases.

This is general information only. It is not legal advice, and MyBuildHub is not a law firm. Laws differ by state and change over time. Speak to a lawyer or your state regulator about your situation before you sign or act.

What must legally be included depends on your state and the contract. As a practical guide, a scope usually states: the work included and excluded; the drawings and specifications it relies on; materials and who supplies them; standards and certificates to be provided; access, site conditions and services; start and finish dates; payment stages; how variations are priced and approved; clean up and waste removal; and the defect period. Add anything your state requires, and have a lawyer review significant contracts.

In MyBuildHub: attach the scope to each contract, link it to the matching budget line, and add the certificates it requires as Tasks.

Check yourself: your state building regulator and a lawyer.

This is general information only. It is not legal advice, and MyBuildHub is not a law firm. Laws differ by state and change over time. Speak to a lawyer or your state regulator about your situation before you sign or act.

Record the work status and communications and seek advice on the next contractual or statutory step. Notify the builder or trade of the problem in writing where appropriate, but do not assume they have abandoned the contract solely because the site is inactive. Before terminating, appointing a replacement or withholding payment, check your rights and any notice or insurance requirements. Make the site safe through suitable assistance and preserve evidence of incomplete or defective work.

Official sources:

• QBCC non completion and contract termination
• CAV Building disputes defects and delays

General information only. Requirements vary by state or territory and change over time, so check the current rules for your location.

A tender checklist helps you compare quotes on the same basis. It usually includes: the same set of drawings and specifications for every tenderer; the licence number, ABN and insurance of each; a priced scope with inclusions and exclusions; allowances for prime cost and provisional sums, listed separately; the programme and start date; payment stages; how variations are priced; warranties and defect periods; and referees or examples of similar work. Compare scope as well as price, and ask each tenderer to explain anything that looks unusually low. Check your state's rules on contracts and have a lawyer review the contract you choose.

In MyBuildHub: record each quote against its budget line and mark the accepted quote, so your forecast reflects the real cost.

Check yourself: your state licensing register, and your state consumer affairs or fair trading body.

This is general information only. It is not legal advice, and MyBuildHub is not a law firm. Laws differ by state and change over time. Speak to a lawyer or your state regulator about your situation before you sign or act.

There is no single national contract. Domestic building contract rules are set by each state, and many states require a written contract with specific content above a set value. Some regulators and industry bodies publish standard forms, for example Master Builders associations and the Housing Industry Association, and the form you can or must use depends on your state and the type of work. For an owner builder engaging trades, the contract is usually between you and each trade. Use a template only as a starting point, confirm it suits your state, and have a lawyer review any significant contract before you sign it.

In MyBuildHub: use the MyBuildHub templates as a starting point for trade scopes and agreements, then attach the signed contract to the matching contract in your project.

Check yourself: your state consumer affairs or fair trading body, your state building regulator, and a lawyer.

This is general information only. It is not legal advice, and MyBuildHub is not a law firm. Laws differ by state and change over time. Speak to a lawyer or your state regulator about your situation before you sign or act.

Start by identifying who contracted for the defective work. A head builder's obligations to you are not automatically removed because a subcontractor performed it. An owner-builder should check both their own responsibilities and the obligations of each contractor. Contract terms and statutory rights can both matter. Record the defect, notify the relevant party and seek an independent assessment or legal advice where needed. Check complaint, insurance and claim deadlines promptly.

Official sources:

• NSW Contracts for residential building work
• Victoria Domestic Building Contracts Act current version
• ACCC Consumer rights and guarantees

General information only. Requirements vary by state or territory and change over time, so check the current rules for your location.