Changes to Building Contracts and Payment Rules for Home Builders and Owners

Domestic Building Contracts Amendment Bill 2025

1st House

2nd House

Law

Links to official parliament websites

Official page: progress through parliament

Effects of this bill

If this bill passes, it means that:

Builders are prohibited from entering into domestic building contracts unless the agreement is in writing, in English, and includes specific details about the parties, the work, and the price.
Builders must include building permit plans, registration numbers, and partnership details in major domestic building contracts signed with developers.
Implied warranties now extend to any agreement made between a builder and a building owner in connection with a domestic building contract.
Builders cannot include cost escalation clauses in domestic building contracts where the price is less than $1,000,000 (or another regulated amount).
Cost escalation clauses are void unless the builder provides a prescribed notice explaining the clause and the building owner signs it before the contract starts.
Multiple domestic building contracts are treated as a single contract if they could have been combined into one major domestic building contract.
The law limits which parts of the Domestic Building Contracts Act apply to contracts between builders and developers.

News articles and press releases