A new build contract in Queensland is more detailed than a standard house sale contract, and many buyers are surprised by how much it locks in before a single slab is poured. Unlike buying an established home, where the property already exists and can be inspected, a building contract commits you to a finished product you cannot fully see yet.
The good news is that Queensland's building laws set out minimum requirements for what every regulated domestic building contract must include, according to the Queensland Building and Construction Commission. The contract must be written, dated and signed by both parties before work begins, and for projects valued at $20,000 or more it must state the start date, the date for practical completion and the statutory warranties. That gives buyers a clear framework to check against.
The Brookwater Legal team helps clients across Greater Springfield and Ipswich with new build contracts, house and land packages and off-the-plan purchases.
Here is what a new build contract generally covers in Queensland, and why each element matters before you sign.
Key takeaways
- A new build contract must be written and signed before work begins, according to the QBCC.
- Statutory warranties of 6 years for structural defects apply to every regulated contract.
- Home warranty insurance is compulsory for residential building work over $3,300.
This article is general information only and is not legal advice. Every situation is different, and you should speak with a solicitor about your own circumstances.
What must a new build contract include in Queensland?
Every regulated domestic building contract in Queensland must include specific items, according to the Queensland Building and Construction Commission. For work valued at more than $3,300, the contract must be written, dated, signed by both parties and agreed before work begins. It must state the contractor's licence number, the site address, the scope of work, the price or how it is calculated, the home warranty insurance premium, the completion date or how it is set, any plans and specifications, and a cooling-off notice.
For projects valued at $20,000 or more the requirements are more detailed, according to the QBCC. The contract must state the start date, the date for practical completion and the statutory warranties. A fixed price and a price change warning must appear on the first page of the contract schedule. The QBCC must also give the owner the QBCC Consumer Building Guide before the contract is signed for projects at this value.
A contractor who builds without a written contract, or starts before the contract is signed, may face consequences under Queensland's building laws. For a buyer, an unsigned or incomplete contract means key protections may be harder to enforce.
What is the cooling-off period for a building contract in Queensland?
Buyers signing a regulated domestic building contract in Queensland generally have a cooling-off period of 5 business days, according to the Queensland Building and Construction Commission. The period starts the day after the owner receives the signed contract and, for work of $20,000 or more, the QBCC Consumer Building Guide.
An owner who withdraws during the cooling-off period generally pays $100 plus the contractor's reasonable out-of-pocket expenses, according to the QBCC. There is no cooling-off period where the owner had formal legal advice on the contract before signing. That makes pre-signing legal advice a practical alternative to relying on the cooling-off period as a safety net.
What limits apply to deposits and progress payments on a new build?
Queensland law sets maximum deposit amounts for regulated building contracts, according to the Queensland Building and Construction Commission. The limits are:
- › Projects of $20,000 or more: maximum deposit of 5% of the contract price.
- › Projects from $3,301 to $19,999: maximum deposit of 10% of the contract price.
- › Where off-site work exceeds 50%: the deposit may be up to 20% of the contract price.
Progress payments must be relative to the work completed, according to the QBCC. A contract that requires large progress payments early in the build, before the corresponding work is done, is a point to raise before signing.
How does a building contract handle variations and changes?
Variations are changes to the scope, materials or timing agreed in the original contract. Under Queensland's building rules, the contractor must give a variation in writing before the variation work starts, except in urgent situations, according to the Queensland Building and Construction Commission. The written variation must state any delay and any price change. The owner must respond in writing.
A variation that is not documented in writing before work begins can create a dispute about who agreed to what and at what cost. Reviewing how the contract handles variations before signing is one of the most practical things a buyer can do.
What are the process steps when a solicitor reviews a building contract?
Step 1: Talk to us
Get in touch and we will explain what the contract review process involves and what to bring.
Step 2: Review the contract
We read the contract against Queensland's building law requirements and check the key terms, including the price, completion date, deposit, variation clauses, statutory warranties and what happens if the builder cannot complete.
Step 3: Raise any concerns
We identify anything that is missing, unclear or unusual and work with you and the builder's side to resolve it before the contract is signed and the cooling-off period begins.
Step 4: Confirm the ancillary documents
We check that any house and land package documents, title searches, covenants and disclosure obligations line up with what the contract says, and that the conveyancing process can proceed without gaps.
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What are statutory warranties and home warranty insurance in Queensland?
Statutory warranties are part of every regulated domestic building contract in Queensland, whether they are written in or not, according to the Queensland Building and Construction Commission. The warranty period is 6 years for structural defects and 1 year for other breaches. These warranties apply to the work itself, not to any defects a buyer knew about before the contract was signed.
Home warranty insurance is compulsory for residential construction work valued over $3,300, according to the QBCC. The contractor collects the premium from the owner as part of the contract and pays it to the QBCC before work begins. The insurance covers work not finished, defects not fixed and subsidence, up to a maximum of $200,000, with limits and exclusions. Cover lasts 6 years and 6 months from the earliest of the premium being paid, the contract being entered into or the work starting, and attaches to the property if it is sold.
A buyer who knew of defects before purchasing cannot later claim through the Queensland Home Warranty Scheme for those defects, according to the QBCC. That is one reason a pre-purchase inspection matters even on a near-new home.
When does this process not apply to a building situation?
Not every building arrangement in Queensland is a regulated domestic building contract covered by the QBCC's rules. The rules above apply to contracts for residential building work valued at more than $3,300. Work at or below that threshold sits outside the regime.
Some minor building work is accepted development and may not require a building permit at all, according to Business Queensland. A small tool shed up to 10 square metres, a retaining wall no more than 1 metre high with no loads above it, and a fence no more than 2 metres high may fall into this category, subject to other requirements and subject to what the local council planning scheme allows.
Owner-builder arrangements are also different. An owner-builder permit is needed for a project on the owner's own land valued at more than $11,000, according to the QBCC. A seller who finished an owner-builder project in the last 6 years must give prospective buyers a notice of the work, and the work is noted on the title for 7 years.
Where a house and land package involves two linked contracts, a land contract and a separate building contract, each operates under its own terms and on its own timeline. The first home owner grant, for new homes valued at less than $750,000 including land and any contract variations, treats a separate land contract and a separate building contract differently from a single off-the-plan contract, according to the Queensland Revenue Office. A solicitor can confirm how the package is structured and what that means for duty concessions and the grant.
Frequently Asked Questions
Does a building contract in Queensland have to be in writing?
Yes. According to the Queensland Building and Construction Commission, a regulated domestic building contract must be in writing, dated and signed by both parties before work begins for projects valued at more than $3,300.
What is the maximum deposit on a new build contract in Queensland?
For projects of $20,000 or more the maximum deposit is 5% of the contract price, according to the Queensland Building and Construction Commission. For projects from $3,301 to $19,999 the limit is 10%.
How long do statutory warranties last on a new build in Queensland?
Statutory warranties last 6 years for structural defects and 1 year for other breaches, according to the Queensland Building and Construction Commission. They apply to every regulated domestic building contract whether or not they are written in.
Is home warranty insurance compulsory for new builds in QLD?
Yes. Home warranty insurance is compulsory for residential building work valued over $3,300, according to the Queensland Building and Construction Commission. The contractor pays the premium to the QBCC before work begins, and cover attaches to the property if it is sold.
What happens at practical completion on a Queensland building contract?
Practical completion is the point where the works are essentially finished and usable, apart from minor defects, according to the Queensland Building and Construction Commission. The contractor can then request the final payment, and a defects list records any outstanding items.
Do you need a solicitor to review a new build contract in Springfield or Ipswich QLD?
There is no legal requirement to use a solicitor, but the Queensland Building and Construction Commission notes that a building contract is a complex legal document. A solicitor can identify terms that are missing or unclear before the cooling-off period begins and before any work starts.
Can a builder change the price after signing a new build contract in Queensland?
After signing, a price change generally requires a written variation agreed before the work begins, according to the Queensland Building and Construction Commission. For projects of $20,000 or more a price change warning must appear on the first page of the contract schedule at the time of signing.
Your Next Steps
Getting a new build contract right in Queensland matters from the moment it is signed. The deposit limits, variation rules, warranty periods and insurance requirements are all set out in the contract itself, and what the contract says before you sign is what governs the build. For buyers in Springfield, Ipswich and across Greater Springfield, reviewing the contract before signing, rather than after a dispute arises, is where a solicitor adds the most value.
If a new build contract is on your mind, the next step is a straightforward one. Get in touch with the Brookwater Legal team or call (07) 3437 8555, and we'll talk you through how the process generally works.
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External Resources
- Queensland Building and Construction Commission - Contracts and agreement types
- Queensland Building and Construction Commission - Deposits and progress payments
- Queensland Building and Construction Commission - What is home warranty insurance
- Queensland Building and Construction Commission - Time limits for cover and claims
- Queensland Building and Construction Commission - Cooling-off period
- Business Queensland - When you don't need building approval
Brookwater Legal · This article contains general information only and does not constitute legal advice. It does not take into account your individual circumstances. You should obtain legal advice about your own situation before acting on anything in this article. Liability limited by a scheme approved under Professional Standards Legislation.
