When planning a domestic building project, it’s important to understand the legal framework that governs these activities. Homeowners and builders alike can often find the process of managing domestic building contracts confusing, especially when it comes to determining whether a major domestic building contract is necessary—particularly for projects that involve just a single trade.
In Victoria, the requirements surrounding domestic building work are set out in the Domestic Building Contracts Act 1995 (Vic) (‘the Act’) and the Domestic Building Contracts Act Regulations 2017 (‘the Regulations’).
What Constitutes Domestic Building Work?
According to section 5 of the Act, domestic building work covers construction, renovation, improvement, or maintenance of a home. It’s essential that any work carried out complies with local regulations and doesn’t accidentally trigger the need for a major domestic building contract or a building permit.
The purpose of a major domestic building contract is to protect both homeowners and builders by ensuring everyone is clear about the scope of work, costs, timelines, and obligations. These contracts also provide legal avenues should disputes arise during or after the project.
When is a Major Domestic Building Contract NOT Required?
Although major domestic building contracts are critical for large-scale projects, there are some exceptions where such contracts aren’t needed. One key exception is when the work falls under a single trade.
Regulation 7 of the Regulations outlines the types of work exempt from the Domestic Building Contracts Act, meaning no major domestic building contract is required. This includes:
- Erecting a mast, pole, antenna, or similar structure
- Attaching external fixtures like awnings, security screens, or balustrades
- Electrical work
- Glazing
- Installing floor coverings (e.g., carpet laying, sanding, and polishing)
- Insulating
- Painting
- Plastering
- Plumbing work as defined under section 221C of the Building Act 1993
- Tiling (wall and floor)
- Erecting a chain wire fence around a tennis court
The rationale behind these exemptions is that single trade works tend to be less complex and carry lower risks than larger, multi-trade projects.
Why an Agreement is Still Important
Even when a major domestic building contract isn’t required by law, we always recommend having a well-drafted agreement in place for single trade works. This helps define the scope of work, costs, and responsibilities, reducing the potential for misunderstandings or disputes down the track.
If you’re unsure about your specific situation, our team is here to provide guidance. Feel free to reach out to our office to speak with one of our experienced team members.
This article is for informational purposes only and does not constitute legal advice.