Major changes from 1 March 2015 – Contracts for owner builders
- The threshold is being raised for the more detailed contract requirements from $5,000 to $20,000. Owner builder work under $20,000 will still need a written ‘minor works’ contract.
- A cap on deposits for work over $20,000 will be increased from 5% to 10%. Builders will only be able to request a maximum of 10% for a deposit for all projects, regardless of the value.
- Contracts over $20,000 will need a progress payment schedule (only authorised payments are allowed) and a termination clause.
- The mandatory consumer building guide, to be provided to owner builders before entering a contract, is being streamlined to provide essential information on both parties’ rights and responsibilities.