Contract checklist

For home owners entering a building contract

A written home building contract for work worth more than $20,000 must contain the following checklist for owners:

1. Have you checked that contractor holds a current contractor licence?
2. Does the licence cover the type of work included in the contract?
3. Is the name and number on the contractor’s licence the same as on the contract?
4. Is the work to be undertaken covered in the contract, drawings or specifications?
5. Does the contract clearly state a contract price or contain a warning that the contract price is not known?
6. If the contract price may be varied, is there a warning and an explanation about how it may be varied?
7. Are you aware of the cooling off provisions relating to the contract?
8. Is the deposit within the legal limit of 10%?
9. Does the contract include details of the progress payments payable under the contract?
10. Do you understand the procedure to make a variation to the contract?
11. Are you aware of who is to obtain any council or other approval for the work?
12. Do you understand that any registered certifier required to certify work under the contract is to be selected by you and the contractor cannot object to your selection?
13. Do you understand that you are not required to pay the contractor a deposit or any progress payments until the contractor has given you a certificate of insurance under Part 6 or 6B of the Home Building Act 1989 (except where the work is of a kind that does not require insurance)?
14. Does the contract include either of the following:
    • the cost of insurance under Part 6 of the Home Building Act 1989?
    • the cost of the alternative indemnity product under Part 6B of the Home Building Act 1989?
15. Has the contractor given you a copy of the Consumer Building Guide, which provides key information about your rights and responsibilities under NSW’s home building laws and where to get more information?
16. Does the contract include a statement about the circumstances in which the contract may be terminated?
17. Does the contract include the Security of Payment Guide which provides key information about your rights and responsibilities under the Building and Construction Industry Security of Payment Act 1999 and the Building and Construction Industry Security of Payment Regulation 2020?

If you answer NO to any of the questions in the checklist, you may not be ready to sign a contract.