General information only, not legal advice. Thresholds and figures can change (Victoria is phasing in the Domestic Building Contracts Amendment Act 2025 by 1 December 2026), so always confirm current rules with Consumer Affairs Victoria or a Victorian building lawyer before signing.
The rules the law gives you
Deposit caps are set by law
A Victorian builder can ask for a deposit of at most 10% if the contract price is under $20,000, or 5% if it is $20,000 or more. They cannot take any deposit until they have given you a Domestic Building Insurance certificate of currency for work over the threshold.
5 business day cooling-off
You can withdraw from a major domestic building contract within 5 business days of receiving the signed copy. Notify the builder in writing and you get your deposit back less $100 plus any approved out-of-pocket costs. The cooling-off right does not apply if a lawyer reviewed the contract before you signed.
Major contracts must be in writing
Any domestic building work over $10,000 needs a major domestic building contract: written, signed, dated, with the full plans, specifications, inclusions and a clear price. Never sign on a brochure or a verbal promise.
Variations in writing, signed first
Every change to the scope or price must be documented and signed by you before the work is done. A variation handed to you as an invoice at handover, for work you never approved, is one you can dispute.
Progress payments match real stages
You pay for work as it is completed (deposit, base, frame, lock-up, fixing, completion), not up front. The schedule in your contract should line up with genuine build stages.
Your statutory warranties stay
The contract cannot remove the implied warranties you get under the Domestic Building Contracts Act. Any clause that tries to is unenforceable.
Your pre-sign checklist
1. Check the builder is VBA-registered
Confirm the company and the registered building practitioner on the VBA practitioner search (bams.vba.vic.gov.au) before you talk money. Registration is the baseline for Domestic Building Insurance and your warranties.
2. Get the DBI certificate before any deposit
For work over the insurance threshold the builder must hand you a Domestic Building Insurance certificate of currency before taking a deposit. No certificate, no deposit.
3. Read the full plans and specification
Read the working drawings, the specification and the inclusions list, not just the glossy display-home brochure. Most disputes start with something that was assumed but never written down.
4. Pin down provisional sums and PC items
Provisional sums and prime cost items are estimates. Ask the builder to tighten them so your contract price is as real as possible and you are not blindsided by adjustments later.
5. Check the deposit and payment schedule
Confirm the deposit matches the legal cap (10% under $20,000, otherwise 5%) and that the progress-payment stages match genuine building milestones.
6. Use cooling-off, or get legal review
If you need time, use your 5-business-day cooling-off right. If you would rather have proper advice, a building lawyer can review it (that waives cooling-off but is often worth it on a big build).
Where to confirm the detail
Consumer Affairs Victoria
Domestic building contract rules, deposits, cooling-off and the Domestic Building Contracts Act.
Victorian Building Authority (VBA)
Check a builder is registered and in good standing before you sign.
Victorian building contracts: common questions
It is the written contract required for domestic building work worth more than $10,000. It must be signed, dated and include the plans, specification, inclusions and price. Smaller work can use a simpler contract, but anything substantial should be a major domestic building contract.
Keep reading: your warranty and rights after handover, what to do about a builder dispute, and how to pick a vetted Melbourne builder in the first place.
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