Construction Contract for New Homes - Consumer Affairs Victoria
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Added on 2023-06-05
About This Document
This is a model contract developed by Consumer Affairs Victoria for Builders and Building Owners entering into a contract for the construction of a new home. It includes a cooling-off period notice, checklists, terms of the contract, legislation extracts, and attachments such as plans, specifications, prime cost items, and provisional sums. The contract satisfies the requirements of the Domestic Building Contracts Act 1995 and other relevant legislation and provides a fair balance between the rights and obligations of the Builder and those of the Building Owner.
Construction Contract for New Homes - Consumer Affairs Victoria
Added on 2023-06-05
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Building contract for new homes
1. Contents
1.Contents............................................................................................................................................................... 1
3.About this contract................................................................................................................................................ 3
4.What does this contract include?........................................................................................................................... 5
5.Cooling-off period notice....................................................................................................................................... 7
6.Key points............................................................................................................................................................. 8
1. Domestic Building Consumer Guide and checklists..................................................................................................8
2. Check the Builder is registered.................................................................................................................................8
3. Foundations Data.....................................................................................................................................................8
4. Be precise in requirements......................................................................................................................................8
5. Get estimates when exact pricing is not possible.....................................................................................................9
6. Deposit.....................................................................................................................................................................9
7. Completing the document.......................................................................................................................................9
8. Permits and prescribed approvals............................................................................................................................9
9. Domestic Building Insurance..................................................................................................................................10
10. Other insurance requirements.............................................................................................................................11
11. Builder’s warranties.............................................................................................................................................11
12. Parties’ authorised representatives.....................................................................................................................11
13. Termination of contract.......................................................................................................................................11
7.Part A: Check the following lists before signing the contract.................................................................................12
9.Director of Consumer Affairs Victoria .................................................................................................................. 12
10.Approved Domestic Building Contracts Checklist................................................................................................ 12
Is the contract complete and ready to be signed?.....................................................................................................14
11.Part B: Terms of the contract............................................................................................................................. 16
1. Definitions..............................................................................................................................................................16
2. Interpretation.........................................................................................................................................................18
3. Communication between the Building Owner and the Builder..............................................................................18
4. Contract Details......................................................................................................................................................20
5. Contract Price.........................................................................................................................................................27
6. Deposit...................................................................................................................................................................31
7. Progress payments.................................................................................................................................................31
8. Domestic Building Insurance..................................................................................................................................34
9. Obligations of the Builder and the Building Owner................................................................................................34
10. Contract documents.............................................................................................................................................36
11. Signatures............................................................................................................................................................ 37
12. General conditions of contract.............................................................................................................................38
13. Commencement of Work.....................................................................................................................................40
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1. Contents
1.Contents............................................................................................................................................................... 1
3.About this contract................................................................................................................................................ 3
4.What does this contract include?........................................................................................................................... 5
5.Cooling-off period notice....................................................................................................................................... 7
6.Key points............................................................................................................................................................. 8
1. Domestic Building Consumer Guide and checklists..................................................................................................8
2. Check the Builder is registered.................................................................................................................................8
3. Foundations Data.....................................................................................................................................................8
4. Be precise in requirements......................................................................................................................................8
5. Get estimates when exact pricing is not possible.....................................................................................................9
6. Deposit.....................................................................................................................................................................9
7. Completing the document.......................................................................................................................................9
8. Permits and prescribed approvals............................................................................................................................9
9. Domestic Building Insurance..................................................................................................................................10
10. Other insurance requirements.............................................................................................................................11
11. Builder’s warranties.............................................................................................................................................11
12. Parties’ authorised representatives.....................................................................................................................11
13. Termination of contract.......................................................................................................................................11
7.Part A: Check the following lists before signing the contract.................................................................................12
9.Director of Consumer Affairs Victoria .................................................................................................................. 12
10.Approved Domestic Building Contracts Checklist................................................................................................ 12
Is the contract complete and ready to be signed?.....................................................................................................14
11.Part B: Terms of the contract............................................................................................................................. 16
1. Definitions..............................................................................................................................................................16
2. Interpretation.........................................................................................................................................................18
3. Communication between the Building Owner and the Builder..............................................................................18
4. Contract Details......................................................................................................................................................20
5. Contract Price.........................................................................................................................................................27
6. Deposit...................................................................................................................................................................31
7. Progress payments.................................................................................................................................................31
8. Domestic Building Insurance..................................................................................................................................34
9. Obligations of the Builder and the Building Owner................................................................................................34
10. Contract documents.............................................................................................................................................36
11. Signatures............................................................................................................................................................ 37
12. General conditions of contract.............................................................................................................................38
13. Commencement of Work.....................................................................................................................................40
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14. Finish Date........................................................................................................................................................... 40
15. Loss or damage incurred by Building Owner........................................................................................................42
16. Purpose of Work..................................................................................................................................................43
17. Builder’s warranties.............................................................................................................................................44
18. Permits, prescribed approvals and third-party requirements..............................................................................47
19. Loan approvals.....................................................................................................................................................48
20. Occupation of the Building Site............................................................................................................................48
21. Access to the Building Site...................................................................................................................................49
22. Extension of Time.................................................................................................................................................49
23. Variations.............................................................................................................................................................51
24. Provisional Sums..................................................................................................................................................51
25. Prime Cost Items..................................................................................................................................................52
26. Evidence of cost of Prime Cost Items and Provisional Sums................................................................................53
27. Effect of payments and non-payments to the Builder..........................................................................................53
28. Final Completion and final payment....................................................................................................................53
29. Building Owner’s recovery for delay, loss, expense or damage...........................................................................53
30. Lender payment...................................................................................................................................................54
31. Completion of Work.............................................................................................................................................54
32. Completion notifications – Opinion Procedure....................................................................................................55
33. Rectification period and maintenance.................................................................................................................55
34. Dispute Resolution Procedure..............................................................................................................................56
35. Suspension of Work by the Builder......................................................................................................................56
36. Consequences of insolvency................................................................................................................................57
37. Termination after notice of default......................................................................................................................57
38. Termination other than after notice of default....................................................................................................58
39. Builder’s entitlement at termination....................................................................................................................58
40. Consequences of termination by the Builder.......................................................................................................59
41. Consequences of termination by the Building Owner..........................................................................................59
42. Insurance..............................................................................................................................................................60
43. Copyright..............................................................................................................................................................61
Document List Attachment........................................................................................................................................62
General Attachment...................................................................................................................................................63
Provisional Sums Schedule.........................................................................................................................................64
Prime Cost Items Schedule.........................................................................................................................................65
12.Part C: Legislation Extracts................................................................................................................................. 67
Clause 1: Definitions..................................................................................................................................................67
Clause 7: Progress payments.....................................................................................................................................68
Clause 12: General conditions of contract.................................................................................................................70
Clause 18: Permits, prescribed approvals and third-party requirements...................................................................71
Clause 23: Variations..................................................................................................................................................71
Clause 38: Termination other than after notice of default.........................................................................................73
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15. Loss or damage incurred by Building Owner........................................................................................................42
16. Purpose of Work..................................................................................................................................................43
17. Builder’s warranties.............................................................................................................................................44
18. Permits, prescribed approvals and third-party requirements..............................................................................47
19. Loan approvals.....................................................................................................................................................48
20. Occupation of the Building Site............................................................................................................................48
21. Access to the Building Site...................................................................................................................................49
22. Extension of Time.................................................................................................................................................49
23. Variations.............................................................................................................................................................51
24. Provisional Sums..................................................................................................................................................51
25. Prime Cost Items..................................................................................................................................................52
26. Evidence of cost of Prime Cost Items and Provisional Sums................................................................................53
27. Effect of payments and non-payments to the Builder..........................................................................................53
28. Final Completion and final payment....................................................................................................................53
29. Building Owner’s recovery for delay, loss, expense or damage...........................................................................53
30. Lender payment...................................................................................................................................................54
31. Completion of Work.............................................................................................................................................54
32. Completion notifications – Opinion Procedure....................................................................................................55
33. Rectification period and maintenance.................................................................................................................55
34. Dispute Resolution Procedure..............................................................................................................................56
35. Suspension of Work by the Builder......................................................................................................................56
36. Consequences of insolvency................................................................................................................................57
37. Termination after notice of default......................................................................................................................57
38. Termination other than after notice of default....................................................................................................58
39. Builder’s entitlement at termination....................................................................................................................58
40. Consequences of termination by the Builder.......................................................................................................59
41. Consequences of termination by the Building Owner..........................................................................................59
42. Insurance..............................................................................................................................................................60
43. Copyright..............................................................................................................................................................61
Document List Attachment........................................................................................................................................62
General Attachment...................................................................................................................................................63
Provisional Sums Schedule.........................................................................................................................................64
Prime Cost Items Schedule.........................................................................................................................................65
12.Part C: Legislation Extracts................................................................................................................................. 67
Clause 1: Definitions..................................................................................................................................................67
Clause 7: Progress payments.....................................................................................................................................68
Clause 12: General conditions of contract.................................................................................................................70
Clause 18: Permits, prescribed approvals and third-party requirements...................................................................71
Clause 23: Variations..................................................................................................................................................71
Clause 38: Termination other than after notice of default.........................................................................................73
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13.Part D: Forms..................................................................................................................................................... 75
Form A – Notice of commencement of Work............................................................................................................75
Form B – Request for evidence of title and site dimensions......................................................................................77
Form C – Notification of requirement for a boundary survey....................................................................................79
Form D – Request for evidence of capacity to meet contract terms..........................................................................81
Form E – Notification of new representative.............................................................................................................83
Form F – Notification of whether loan has been approved........................................................................................86
Form G – Notification of likely delay/claim for Extension of Time.............................................................................88
Form H – Variation to plans and specifications..........................................................................................................92
Form I – Notification of Provisional Sum or Prime Cost Item Work............................................................................97
Form J – Progress payments....................................................................................................................................100
Form K – Loss, expense or damage caused to the Building Owner..........................................................................103
Form L – Completion of Work and Opinion Procedure............................................................................................106
Form M – Rectification requirement........................................................................................................................114
Form N – Notice of dispute......................................................................................................................................117
Form O – Suspension of Work..................................................................................................................................119
Form P – Termination of contract by Builder...........................................................................................................122
Form Q – Termination of contract by Building Owner.............................................................................................126
Form R – Notice to Builder of appointment of private building surveyor or instructions to apply to municipal
building surveyor for building permit.......................................................................................................................129
[Form begins]...........................................................................................................................................................130
14.Publisher information...................................................................................................................................... 132
2.
Published by Consumer Affairs Victoria
Department of Justice & regulation
121 Exhibition Street
Melbourne VIC 3000
3. About this contract
Consumer Affairs Victoria (Department of Justice & Regulation) has developed this contract to assist Builders and
Building Owners entering into a contract for the construction of a new home. This contract can be used where the Builder
is registered in Victoria as a domestic builder by the Victorian Building Authority (or by the Building Practitioners Board
for builders registered before 1 September 2016). This contract should not be used if the Building Owner intends to carry
out the Work as an owner builder or if the building permit identifies the Builder as the owner.
This contract satisfies the requirements of the Domestic Building Contracts Act 1995 (the Act) and other relevant
legislation and provides a fair balance between the rights and obligations of the Builder and those of the Building Owner.
As far as possible without losing legal intent, the contract has been drafted in plain English.
The contract includes notes designed to help both parties understand their rights and their responsibilities under the
contract. These notes are advisory only and do not form part of the legal contract.
To assist parties to this contract to communicate with each other about significant issues, the contract provides model
forms (see Part D). The contract does not mandate the use of these forms but their use is highly recommended.
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Form A – Notice of commencement of Work............................................................................................................75
Form B – Request for evidence of title and site dimensions......................................................................................77
Form C – Notification of requirement for a boundary survey....................................................................................79
Form D – Request for evidence of capacity to meet contract terms..........................................................................81
Form E – Notification of new representative.............................................................................................................83
Form F – Notification of whether loan has been approved........................................................................................86
Form G – Notification of likely delay/claim for Extension of Time.............................................................................88
Form H – Variation to plans and specifications..........................................................................................................92
Form I – Notification of Provisional Sum or Prime Cost Item Work............................................................................97
Form J – Progress payments....................................................................................................................................100
Form K – Loss, expense or damage caused to the Building Owner..........................................................................103
Form L – Completion of Work and Opinion Procedure............................................................................................106
Form M – Rectification requirement........................................................................................................................114
Form N – Notice of dispute......................................................................................................................................117
Form O – Suspension of Work..................................................................................................................................119
Form P – Termination of contract by Builder...........................................................................................................122
Form Q – Termination of contract by Building Owner.............................................................................................126
Form R – Notice to Builder of appointment of private building surveyor or instructions to apply to municipal
building surveyor for building permit.......................................................................................................................129
[Form begins]...........................................................................................................................................................130
14.Publisher information...................................................................................................................................... 132
2.
Published by Consumer Affairs Victoria
Department of Justice & regulation
121 Exhibition Street
Melbourne VIC 3000
3. About this contract
Consumer Affairs Victoria (Department of Justice & Regulation) has developed this contract to assist Builders and
Building Owners entering into a contract for the construction of a new home. This contract can be used where the Builder
is registered in Victoria as a domestic builder by the Victorian Building Authority (or by the Building Practitioners Board
for builders registered before 1 September 2016). This contract should not be used if the Building Owner intends to carry
out the Work as an owner builder or if the building permit identifies the Builder as the owner.
This contract satisfies the requirements of the Domestic Building Contracts Act 1995 (the Act) and other relevant
legislation and provides a fair balance between the rights and obligations of the Builder and those of the Building Owner.
As far as possible without losing legal intent, the contract has been drafted in plain English.
The contract includes notes designed to help both parties understand their rights and their responsibilities under the
contract. These notes are advisory only and do not form part of the legal contract.
To assist parties to this contract to communicate with each other about significant issues, the contract provides model
forms (see Part D). The contract does not mandate the use of these forms but their use is highly recommended.
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The use of this model contract is voluntary. Builders and Building Owners are free to use a different contract, such as
one prepared by the Builder, a solicitor, or purchased from an industry association – provided it satisfies the provisions of
the Act and other laws.
Whether this model contract or a different contract is used, both the Builder and Building Owner should read and fully
understand all the terms in the contract.
When signed by all the parties, this contract will be legally binding in the same way as a contract drawn up by a solicitor.
This contract is designed for use for a new home where plans and specifications for the Work have already been drawn
up and where the Builder is engaged to complete the construction of the home. It can be used for any new home,
regardless of its size or cost.
If the Building Owner has any questions about this contract, its status, or how to complete it, they should:
discuss the matter with the Builder
seek advice, at the Building Owner’s cost, from a suitably qualified professional, such as a solicitor experienced in
domestic building contracts.
Consumer information on building and renovating is available at the Consumer Affairs Victoria website or by calling 1300
557 559.
Note: Words in italics appearing throughout this contract are defined in Clause 1 of this contract (Part B). Legislation is
also italicised but should not be read as a defined term.
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one prepared by the Builder, a solicitor, or purchased from an industry association – provided it satisfies the provisions of
the Act and other laws.
Whether this model contract or a different contract is used, both the Builder and Building Owner should read and fully
understand all the terms in the contract.
When signed by all the parties, this contract will be legally binding in the same way as a contract drawn up by a solicitor.
This contract is designed for use for a new home where plans and specifications for the Work have already been drawn
up and where the Builder is engaged to complete the construction of the home. It can be used for any new home,
regardless of its size or cost.
If the Building Owner has any questions about this contract, its status, or how to complete it, they should:
discuss the matter with the Builder
seek advice, at the Building Owner’s cost, from a suitably qualified professional, such as a solicitor experienced in
domestic building contracts.
Consumer information on building and renovating is available at the Consumer Affairs Victoria website or by calling 1300
557 559.
Note: Words in italics appearing throughout this contract are defined in Clause 1 of this contract (Part B). Legislation is
also italicised but should not be read as a defined term.
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4. What does this contract include?
Item Description
Cooling-off period notice After signing a domestic building contract, the Building Owner enters into a
‘cooling-off’ period under Victoria’s consumer protection laws. The ‘cooling-off’
period is five Business Days.
During the cooling-off period, the Building Owner can decide not to continue with
the contract. If the Building Owner decides they do not wish to continue with the
contract, the Building Owner must sign the cooling-off period notice in this
contract and give it to the Builder in the manner detailed in the notice. Upon doing
this, the contract is cancelled.
Part A: Required checklists
before signing the contract
There are two checklists in Part A of this contract that must be read and signed
before the contract is signed. One checklist is for the Building Owner to complete.
By law, this checklist must be completed before the contract is signed and
entered into. The second checklist is a guide to assist both the Building Owner
and the Builder to complete the contract.
Part B: Terms of the contract and
related attachments
This is the legal contract that sets out the various rights and obligations of the
Building Owner and the Builder.
Notes are provided to assist in understanding and completing the contract. These
notes are advisory notes only and do not form part of the contract.
Part C: Legislation Extracts Part C reproduces key sections of the Act to assist in understanding of the legal
requirements of the contract.
The terms of this contract require the Building Owner and the Builder to read and
initial the copies of sections 37 and 38 (Variation to contract) and sections 40(1)
and 40(2) (progress payments) of the Act, which are reproduced in the
Legislation Extracts.
Attachments A number of other important documents also form part of the contract, and need
to be included as attachments. These include copies of the plans and
specifications and estimates of the cost of particular items. These are explained
in the consecutive sections Document List Attachment and General Attachment.
Plans Plans are detailed drawings that graphically describe the Work and how the Work
will be undertaken. Plans will detail materials to be used including size, type,
quantity, position and quality.
Plans will also detail how the Work complies with the relevant legislation
governing the construction of the building, such as the Planning and Environment
Act 1987 and the Building Act 1993.
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Item Description
Cooling-off period notice After signing a domestic building contract, the Building Owner enters into a
‘cooling-off’ period under Victoria’s consumer protection laws. The ‘cooling-off’
period is five Business Days.
During the cooling-off period, the Building Owner can decide not to continue with
the contract. If the Building Owner decides they do not wish to continue with the
contract, the Building Owner must sign the cooling-off period notice in this
contract and give it to the Builder in the manner detailed in the notice. Upon doing
this, the contract is cancelled.
Part A: Required checklists
before signing the contract
There are two checklists in Part A of this contract that must be read and signed
before the contract is signed. One checklist is for the Building Owner to complete.
By law, this checklist must be completed before the contract is signed and
entered into. The second checklist is a guide to assist both the Building Owner
and the Builder to complete the contract.
Part B: Terms of the contract and
related attachments
This is the legal contract that sets out the various rights and obligations of the
Building Owner and the Builder.
Notes are provided to assist in understanding and completing the contract. These
notes are advisory notes only and do not form part of the contract.
Part C: Legislation Extracts Part C reproduces key sections of the Act to assist in understanding of the legal
requirements of the contract.
The terms of this contract require the Building Owner and the Builder to read and
initial the copies of sections 37 and 38 (Variation to contract) and sections 40(1)
and 40(2) (progress payments) of the Act, which are reproduced in the
Legislation Extracts.
Attachments A number of other important documents also form part of the contract, and need
to be included as attachments. These include copies of the plans and
specifications and estimates of the cost of particular items. These are explained
in the consecutive sections Document List Attachment and General Attachment.
Plans Plans are detailed drawings that graphically describe the Work and how the Work
will be undertaken. Plans will detail materials to be used including size, type,
quantity, position and quality.
Plans will also detail how the Work complies with the relevant legislation
governing the construction of the building, such as the Planning and Environment
Act 1987 and the Building Act 1993.
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Item Description
Specifications Specifications are a written description of the required quality of the Work. A
specification prescribes specific details regarding the Work, including, for
example, adherence to relevant Australian construction standards.
Specifications will also detail particular items a Building Owner requires in a
building and the ‘schedule of finishes’ to be achieved in the building’s
construction.
Specifications also enable a clear understanding of the level of quality that is to
be achieved in the building’s construction.
Prime Cost Items Prime Cost Items are items (for example, a fixture or fitting) that either have not
been selected, or whose price is not known, at the time the contract is entered
into and for the cost of supply and delivery of which the Builder must make a
reasonable allowance in the contract.
A Schedule individually identifying each Prime Cost Item is attached to this
contract.
Provisional Sum A Provisional Sum is an estimate of the cost of carrying out particular work
(including the cost of supplying any materials needed for the Work) under the
contract for which a Builder, after making all reasonable inquiries, cannot give a
definite amount at the time the contract is entered into.
A Schedule individually identifying each Provisional Sum item is attached to this
contract.
Note: Words in italics are defined in Clause 1 of this contract (Part B).
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Specifications Specifications are a written description of the required quality of the Work. A
specification prescribes specific details regarding the Work, including, for
example, adherence to relevant Australian construction standards.
Specifications will also detail particular items a Building Owner requires in a
building and the ‘schedule of finishes’ to be achieved in the building’s
construction.
Specifications also enable a clear understanding of the level of quality that is to
be achieved in the building’s construction.
Prime Cost Items Prime Cost Items are items (for example, a fixture or fitting) that either have not
been selected, or whose price is not known, at the time the contract is entered
into and for the cost of supply and delivery of which the Builder must make a
reasonable allowance in the contract.
A Schedule individually identifying each Prime Cost Item is attached to this
contract.
Provisional Sum A Provisional Sum is an estimate of the cost of carrying out particular work
(including the cost of supplying any materials needed for the Work) under the
contract for which a Builder, after making all reasonable inquiries, cannot give a
definite amount at the time the contract is entered into.
A Schedule individually identifying each Provisional Sum item is attached to this
contract.
Note: Words in italics are defined in Clause 1 of this contract (Part B).
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5. Cooling-off period notice
Domestic Building Contracts Act 1995
Director of Consumer Affairs Victoria
Approved Notice
The following notice is hereby approved by the Director of Consumer Affairs Victoria. This version of the notice replaces
the version published in the Victorian Government Gazette of 16 May 1996. The notice must be included in major
domestic building contracts in substantially the same form or to the same effect as follows:
Notice pursuant to Section 31(1)(n)
Cooling off period
Notice to Building Owner: You may end this contract within five clear business days after receipt by you of a signed copy
of the contract by filling in the notice below and giving it to the Builder in one of the following ways:
(1) Personally
(2) Leaving it at his or her address set out in the contract with a person who appears to be at least 16 years old
(3) Sending it by pre-paid certified mail to the address set out in this contract
(4) Sending it by facsimile to the facsimile number (if any) set out in this contract.
Detach along dotted line
[Form begins]
Notice that contract is ended
A Building Owner cannot withdraw from a contract under the Act if:
1. The Builder and the Building Owner have previously entered into a major domestic building contract that is in
substantially the same terms for the carrying out of the Work in relation to the same home or land; OR
2. The Building Owner received independent legal advice from an Australian legal practitioner concerning the
contract before entering into the contract.
To (Builder): Reolen Builders
I/We: J and H Wilson
give notice under our contract with you that the contract
is ended. Please refund the deposit less $100 and any
out of pocket expenses incurred by you which I have
previously approved.
Building Owner’s signature:
Date: 16 September, 2022
[Form ends]
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Domestic Building Contracts Act 1995
Director of Consumer Affairs Victoria
Approved Notice
The following notice is hereby approved by the Director of Consumer Affairs Victoria. This version of the notice replaces
the version published in the Victorian Government Gazette of 16 May 1996. The notice must be included in major
domestic building contracts in substantially the same form or to the same effect as follows:
Notice pursuant to Section 31(1)(n)
Cooling off period
Notice to Building Owner: You may end this contract within five clear business days after receipt by you of a signed copy
of the contract by filling in the notice below and giving it to the Builder in one of the following ways:
(1) Personally
(2) Leaving it at his or her address set out in the contract with a person who appears to be at least 16 years old
(3) Sending it by pre-paid certified mail to the address set out in this contract
(4) Sending it by facsimile to the facsimile number (if any) set out in this contract.
Detach along dotted line
[Form begins]
Notice that contract is ended
A Building Owner cannot withdraw from a contract under the Act if:
1. The Builder and the Building Owner have previously entered into a major domestic building contract that is in
substantially the same terms for the carrying out of the Work in relation to the same home or land; OR
2. The Building Owner received independent legal advice from an Australian legal practitioner concerning the
contract before entering into the contract.
To (Builder): Reolen Builders
I/We: J and H Wilson
give notice under our contract with you that the contract
is ended. Please refund the deposit less $100 and any
out of pocket expenses incurred by you which I have
previously approved.
Building Owner’s signature:
Date: 16 September, 2022
[Form ends]
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6. Key points
1. Domestic Building Consumer Guide and checklists
The Builder is required by law to give the Building Owner a copy of the Domestic Building Consumer Guide
published by Consumer Affairs Victoria before signing the contract.
Reading the guide will help the Building Owners understand the roles, rights and responsibilities of the
Builder, the Building Owner and the building surveyor. A copy of the guide, and additional information about
domestic building contracts and work, is available at consumer.vic.gov.au/buildingguide.
The Checklist for the Building Owner, later in this document, is required by law and must be completed and
signed by the Building Owner (and not by the Builder) before signing the contract. It ensures the Building
Owner has considered important issues before signing the contract. It also helps the Building Owner to
communicate with the Builder about those issues before finalising the contract.
The checklist ‘Is the contract complete and ready to be signed’, later in this document, is a guide to assist
both the Building Owner and the Builder before signing the contract. It ensures the Building Owner and the
Builder have considered and understood important issues before signing the contract. It also helps the
Building Owner and the Builder to communicate about those issues before finalizing the contract. This aims
to reduce potential disputes and misunderstandings between the Building Owner and the Builder.
2. Check the Builder is registered
The Building Owner should check with the Victorian Building Authority (visit the Victorian Building Authority
website) that the Builder holds a current registration with the Victorian Building Authority (or the Building
Practitioners Board if registered before 1 September 2016) as a domestic builder.
A simple check would be to view the Builder’s building practitioner’s registration card issued by the Victorian
Building Authority (or the Building Practitioners Board if registered before 1 September 2016). For the
purpose of construction of a new dwelling, the Builder’s registration number will be prefixed with either:
DB-U- e.g. DB-U 1234
DB-M- e.g. DB-M 5678.
In addition to viewing the Builder’s registration card, a Building Owner should also check that the Builder’s
registration is current. This is a simple process. Visit the Victorian Building Authority website and follow the
links to ‘find a practitioner’, then enter the Builder’s registration number. The status of the Builder’s
registration will then be confirmed.
There are additional requirements when a building owner engages a builder with a registration number
beginning with DB-M. The Building Owner should refer to the Victorian Building Authority website for further
information.
3. Foundations Data
The law requires that the soil is tested to assess the type and cost of footings suitable for the site. The Act
defines this testing as Foundations Data. This testing is important because, for example, rock hidden
beneath the surface will significantly increase the cost of excavating the site. The law requires the Builder to
obtain the Foundations Data for the Building Site before signing the contract. The Building Owner should
confirm that the Builder has done this.
The cost of testing is not part of the Contract Price because the Builder needs this information before setting
the Contract Price.
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consumer.vic.gov.au/ Page 8 of 143
1. Domestic Building Consumer Guide and checklists
The Builder is required by law to give the Building Owner a copy of the Domestic Building Consumer Guide
published by Consumer Affairs Victoria before signing the contract.
Reading the guide will help the Building Owners understand the roles, rights and responsibilities of the
Builder, the Building Owner and the building surveyor. A copy of the guide, and additional information about
domestic building contracts and work, is available at consumer.vic.gov.au/buildingguide.
The Checklist for the Building Owner, later in this document, is required by law and must be completed and
signed by the Building Owner (and not by the Builder) before signing the contract. It ensures the Building
Owner has considered important issues before signing the contract. It also helps the Building Owner to
communicate with the Builder about those issues before finalising the contract.
The checklist ‘Is the contract complete and ready to be signed’, later in this document, is a guide to assist
both the Building Owner and the Builder before signing the contract. It ensures the Building Owner and the
Builder have considered and understood important issues before signing the contract. It also helps the
Building Owner and the Builder to communicate about those issues before finalizing the contract. This aims
to reduce potential disputes and misunderstandings between the Building Owner and the Builder.
2. Check the Builder is registered
The Building Owner should check with the Victorian Building Authority (visit the Victorian Building Authority
website) that the Builder holds a current registration with the Victorian Building Authority (or the Building
Practitioners Board if registered before 1 September 2016) as a domestic builder.
A simple check would be to view the Builder’s building practitioner’s registration card issued by the Victorian
Building Authority (or the Building Practitioners Board if registered before 1 September 2016). For the
purpose of construction of a new dwelling, the Builder’s registration number will be prefixed with either:
DB-U- e.g. DB-U 1234
DB-M- e.g. DB-M 5678.
In addition to viewing the Builder’s registration card, a Building Owner should also check that the Builder’s
registration is current. This is a simple process. Visit the Victorian Building Authority website and follow the
links to ‘find a practitioner’, then enter the Builder’s registration number. The status of the Builder’s
registration will then be confirmed.
There are additional requirements when a building owner engages a builder with a registration number
beginning with DB-M. The Building Owner should refer to the Victorian Building Authority website for further
information.
3. Foundations Data
The law requires that the soil is tested to assess the type and cost of footings suitable for the site. The Act
defines this testing as Foundations Data. This testing is important because, for example, rock hidden
beneath the surface will significantly increase the cost of excavating the site. The law requires the Builder to
obtain the Foundations Data for the Building Site before signing the contract. The Building Owner should
confirm that the Builder has done this.
The cost of testing is not part of the Contract Price because the Builder needs this information before setting
the Contract Price.
(26/07/2016)
consumer.vic.gov.au/ Page 8 of 143
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