Issues before and during construction

You can find trades or builders through many sources, including recommendations from family, friends, colleagues or neighbours, or different websites such as review platforms, renovation forums, or member lists on building industry association websites. Learn more about finding a practitioner and getting quotes.

Regardless of how you find someone, you must always do your due diligence by checking their registration and insurance, even if they were recommended by a trusted family member or friend.

Be flexible on:

• Timing: if the project is not urgent, don’t rush. Wait for the right person or business to be available
• Pricing/budget: expect to pay more for premium quality, anyone that’s in demand, custom services, or for priority scheduling
• Quotes: be patient and give them enough time before following up, or giving up as this could be a sign that they’re in demand
• Who to hire: widen your search if a specific person or business is not available or locally available
• Customisation versus standard designs: custom work takes longer, is less available than generic, and costs more.

What you need to know if you have signed a contract, but your builder hasn’t confirmed when building will start or how long it will take. By law, building contracts worth $10,000 or more must state:

• The date the work will start, or how that date is to be determined, e.g. 21 days from the building permit being obtained. If the date is not known, the contract must also include a statement that the builder will do everything reasonably possible to ensure work will start as soon as possible
• Any allowances for delays, such as bad weather, public holidays, and weekends. The contract must set out how many days have been allowed for each type of delay
• A finish date or if the starting date is not yet known, the number of days that will be required to finish the work once it is started.

Don’t sign a building contract unless this information has been included, regardless of the cost. Consider engaging a lawyer to review the contract before signing, but remember that doing this means you are no longer entitled to a cooling off period after signing.

Learn more about agreements and contracts.

Permits have time limits

If your project needs a building permit or planning permit, the building work must begin within:

• 1 year of the building permit being issued
• 2 years of the planning permit being issued

You should apply for an extension before a permit expires. Extensions for building permits are granted by your building surveyor and extensions for planning permits are granted by your local council.

Make sure you apply for an extension well ahead of lapse date as it can take some time for an extension to be granted. Missing this date means you will have to apply for a new permit and pay application fees again. There’s also no guarantee a new permit will be granted.

Find out what the cause of the delay is

Speak to your building surveyor first to find out about the project’s progress before you talk to your builder. If you have someone overseeing the project, get them to speak to the builder for you and find out the reason for the delay.

Contracts make allowances for reasonable delays. Circumstances that are not within the builder’s control and that could not be foreseen by them at the time the contract was signed, such as material or skilled labour shortages or illness would generally not be considered for breaches of contract. An extended delay caused solely by the builder and that is within their control may be a breach of the terms of the contract.

Consider if you have contributed to delays and make allowances for this. Did you change something in the project, forget to advise them of details they relied on (colours, finishes) or fail to supply them with the measurements for appliances?

What you can do if the builder has caused a delay

Always talk to your builder and give them an opportunity to fix the issue before lodging a formal complaint or dispute. Learn more about the process for resolving disputes.

You may end a major domestic building contract if the work has not been completed within 1.5 times the construction period stated in the contract and if the builder couldn’t foresee the delay at the time it was signed. To do this, you must give the builder a signed notice stating that you are ending the contract under s41 of the Domestic Building Contracts Act 1995 and give details of why the contract is being ended. You are entitled to a refund of money paid to the builder, minus reasonable costs for work already done.

Review your contract for clauses that deal with delays. If your builder hasn’t met the requirements of your contract, you may be eligible for conciliation.

If you don’t have a formal building contract with a start date, you may have rights under the Australian Consumer Law (ACL). Under the ACL’s consumer guarantees you have the right to cancel a service not performed within a reasonable timeframe. You may also request a refund of any deposits.

Make sure you understand your building contract and agreement – know what’s included and what’s not. The contract should reflect the agreement you and your builder have come to before you sign it.

You can also engage a building lawyer to review the contract before you sign it. Other professionals, such as architects, may assist with drafting or managing contracts, and can speak to the builder about materials, standards and budget. Learn more about the roles and responsibilities of professionals that may be involved in your project.

Always talk to your builder and try to resolve the issue informally before lodging a formal complaint or dispute. Refer to notes of discussions and emails to confirm details that were agreed to. Consider varying the contract and make sure any new agreements, such as changes to costs and timelines are updated in it.

By law, most variations must have a variation notice signed by both parties. A variation notice isn’t required if the owner requests a variation and the builder believes that the changes will not require a change to any permits, cause a delay, or add more than 2% to the original contract price.

Prevent unexpected costs by planning well at the start and understanding your contract and what your options are if they happen:

• You should make allowances in your budget for unforeseen costs, such as design changes or inflation. This is called contingency. The amount generally advised is 10 to 20% of the total cost.
• Plan well at the start so you can avoid making changes mid-project. Builders generally use standard fittings, such as plain white plastic power points and generic taps. The costs of upgrading these items can add up quickly if not planned for. If you want different colours, styles or qualities of fittings or materials, state them in the contract or supply them yourself.
• Check what’s in the contract rather than assuming what’s included. For example, flyscreens might not be supplied with new windows and a new house build might not include landscaping. There are websites that offer building contract checklists that you can use.
• You can also protect yourself by using a fixed-price contract, where costs are set at the start. This means that unless the contract includes an agreement for you to cover extra costs, the builder must cover any additional costs if they go over budget.

Always talk to your builder and give them an opportunity to fix the issue before lodging a formal complaint or dispute.

You may end a major domestic building contract if the contract price increases by 15% or more and the builder couldn’t foresee the increase at the time it was signed. To do this, you must give the builder a signed notice stating that you are ending the contract under s41 of the Domestic Building Contracts Act 1995 and give details of why the contract is being ended. You are entitled to a refund of money paid to the builder, minus reasonable costs for work already done. Consider the cost of accepting the increase versus cancelling the contract and finding a new builder to complete the work.

Your project is required to have a registered practitioner in certain circumstances:

• when a builder is carrying out building work worth $10,000 or more and requires a major domestic building contract
• some types of work, such as demolitions, electrical work and structural work must be done by a registered practitioner regardless of the cost
• for some work, the practitioner does not need to be registered if they are only carrying out one task, regardless of the cost, such as painting, plastering and tiling

It is illegal for a person to imply or state that they are registered when they are not.

Learn more about domestic building work and practitioner classes and find out when a registration is needed when home improvements cost $10,000 or less.

Before hiring a practitioner, you should check that they are registered for that type of work:

• Never engage unlicensed or unregistered practitioners when they are required.
• Ask them directly about their registrations and licences and be wary of those who avoid answering.
• You can also ask them to show you an ID card with their registration details. It is illegal for them to refuse.
• Beware of those who use another practitioner's registration or licence. This is called licence lending.

Always talk to your builder and give them an opportunity to fix the issue before lodging a formal complaint or dispute.

Building and plumbing work that is done without the required registrations or licences can be reported to the Building and Plumbing Commission (BPC). We may investigate whether a law has been broken and take disciplinary action against the practitioner.

Other practitioners, such as electricians, architects and engineers, are registered through other government agencies.

The help available depends on when your building contract was signed and which insurance applies to your project.

If your contract was signed before 1 July 2026

Domestic Building Insurance may apply if your builder dies, disappears or becomes insolvent.

For eligible work, your builder should have arranged this insurance and given you a Certificate of Insurance before work started.

If your contract was signed on or after 1 July 2026

Home Warranty may apply to eligible domestic building work valued at more than $20,000.

It may provide assistance if your builder becomes insolvent. It may also apply in some other situations where eligible work is incomplete, defective or does not meet legal requirements and the builder does not complete or fix it.

Check whether you have:

• a Domestic Building Insurance Certificate of Insurance, or
• a Home Warranty Notice of Cover.

Contact BPC if you are not sure which insurance applies or what to do next.