No—the ACT Government’s Hiring a builder guidance says ACT legislation does not require a written contract for residential building work, but it strongly recommends one.
Figures checked 1 October 2026 in that guidance show that there is no mandatory cooling-off period; residential building work over $12,000 carries statutory warranties even if they are omitted; and, for work over $12,000 on some residential buildings, the builder must have residential building work insurance or a fidelity fund certificate before the project commences.
A written contract gives the homeowner and builder a binding record of costs, timeframes, rights, responsibilities, variations, completion requirements and dispute procedures.
Does this apply to landscaping within a building or renovation package?
The guidance is primarily for homeowners hiring builders, so it does not classify every stand-alone landscaping job. If landscaping forms part of a wider building or renovation package, ask:
- Is the landscaping scope included in the main building contract?
- Which builder or homeowner is your contracting party?
- Does a separate landscaping agreement conflict with the main contract?
- Do both documents agree on price, dates, materials, variations, handover and defects?
The written documents should clearly allocate the landscape scope, responsibilities, programme, payment stages, approval duties, variation process and completion requirements.
A significant boundary is that the guidance says statutory warranties apply to the residence but not to items such as paving, fences, retaining walls, outdoor swimming pools, ponds and antennas. This does not mean those items cannot have contractual protection, but it makes the allocation of warranties and insurance particularly important. Obtain independent legal advice if the head contract and landscaping agreement are inconsistent.
What should the written building contract record?
The guidance says a residential building contract should make the following matters clear:
| Contract area | What to check |
|---|---|
| Parties | Exact names of the homeowner and builder, the work address, contract date and both signatures |
| Builder details | Licence details and any insurance policies held by the builder |
| Scope of work | Detailed description, plans, specifications and important work features |
| Inclusions | Agreed materials, finishes and features that cannot be changed without the homeowner’s agreement |
| Approvals | Who is responsible for obtaining relevant building and development approvals |
| Price | The contract price if known, or clear explanations of unknown costs and costs subject to change |
| Timeframes | Start date, completion date, final handover date and allowed time for approvals |
| Payments | Deposit, progress-payment stages and the amount due at each stage |
| Changes | How variations and extensions of time will be requested, assessed and approved |
| Completion | Practical completion, handover, the defects liability period and each party’s duties |
| Ending the work | When termination may occur and what either party must pay or do |
| Disputes | The process the parties must follow to attempt to resolve a dispute |
Some building work requires a building approval and inspections by an independent building certifier. The guidance says the landowner is responsible for appointing the certifier. A residential building contract must not give the builder the right to appoint the certifier or act as the homeowner’s agent when dealing with it. A builder or another person may appoint the certifier only under a separate written agreement.
A builder may use a standard residential contract from an industry association or have a lawyer draft one. If the contract includes special conditions, check them carefully and make sure the contract provides the protections needed for the project.
What checks should be completed before signing?
- Obtain at least 3 quotes from different builders. The cheapest quote is not always the best value.
- For work requiring a licensed builder, check that the builder holds the correct licence class and is insured where required.
- Ask about similar completed work and recent clients.
- Consider company searches and checking the disciplinary register for compliance action against the builder or its directors.
- Set a budget, allow for additional costs and remember that higher quality generally costs more.
- Read every clause and make sure you understand your rights and obligations before signing.
- Obtain independent legal and financial advice if anything remains unclear.
There is no mandatory cooling-off period for ACT building contracts, so be ready before signing. Changing your mind after signing may result in a contractual penalty. Ask for a copy of the signed contract as soon as possible.
How should deposits and progress payments be recorded?
A deposit is the initial payment to start the work. Progress payments are further payments as the project progresses.
The guidance says:
- The ACT has no limit on the initial deposit, although industry practice is usually up to 10% of the total contract price.
- The deposit is generally paid in advance as security for the builder and towards initial material costs.
- The progress-payment schedule should identify each work stage and the amount payable after that stage.
- Apart from the initial deposit, good practice is for progress payments to cover only work already completed. Check that the contract says so.
- If the project is financed, understand the lender’s requirements for releasing funds.
- Seek legal advice before using a payment schedule created by the parties themselves.
The contract should also make it clear whether you can meet the deposit and progress-payment obligations when they fall due.
How should variations, delays and extra costs be handled?
The contract should explain how changes to plans, specifications, time and costs will be processed. It should also address variations arising from changes in local law, errors in plans or changes in the supply of goods.
Most contracts require variations to be in writing and signed by both parties, and the guidance advises always obtaining variations in writing. A builder may refuse a variation request in circumstances prescribed by the contract.
A builder’s margin is essentially the builder’s fee. It may apply in specified circumstances, including variations or termination, and is used to calculate the amount added to other costs. Check the percentage, when it applies and how it affects payment.
The contract should also state:
- How an extension of time is requested and assessed
- How the completion and handover dates respond to an approved extension
- What happens when local requirements, plans or supplied goods change
- Whether delay compensation is available and what events count as allowable delays
The guidance says contracts generally contain delay-compensation terms for the builder. If compensation for construction delays is important, discuss it and obtain legal advice before signing. A liquidated damages clause, if included, may require the builder to pay an amount for each day the project is late, excluding allowable delays such as rain, events outside the builder’s control or delays caused by the homeowner.
What happens at practical completion or termination?
Practical completion generally means the building is complete or almost complete under the contract, apart from minor work or defect fixing. Most contracts use practical completion as the finish date, but some do not, so check when contractual completion occurs.
Lock-up is different. It generally means the building can be secured, while internal and external work remains. Neither lock-up nor practical completion necessarily means every item of work is finished.
The contract should explain:
- The practical completion date and final handover process
- The maintenance or defects liability period
- What the homeowner and builder must do during that period
- How minor work and defects must be addressed
- When either party may terminate the contract
- What payments or other obligations follow termination
Termination clauses may require the homeowner to pay an amount to the builder. Seek legal advice if they do not provide sufficient protection.
Do statutory warranties or insurance settle a landscaper’s position?
No single protection should be assumed to cover every part of a landscaping package. The guidance distinguishes the following:
| Protection | What the ACT guidance says |
|---|---|
| Statutory warranties | Residential building work over the value of $12,000 carries statutory warranties even if the contract does not state them. They apply to the residence, but not to items such as paving, fences, retaining walls, outdoor swimming pools, ponds and antennas. |
| Residential building work insurance or fidelity fund certificate | For work over $12,000 on some residential buildings, the builder must have the relevant project protection before the work commences. At the check above, the maximum amount claimable under project insurance is $10,000 if the work is not completed. |
| Homeowners warranty insurance | This covers only up to $10,000 for deposits and is not residential building work insurance under the Building Act 2004. |
| Contractual warranties | A contract may provide additional warranties and defect-resolution processes without limiting statutory warranties. |
Obtain a copy of the residential building work insurance policy or fidelity fund certificate. Check that the contract allows fair termination if the builder cannot obtain required insurance within the prescribed time.
Separate insurance may also be purchased voluntarily. Even without a legislative requirement for a written contract, the Building Act 2004 requires building work to be carried out in accordance with the Act, in a proper and skilful way, and according to approved plans.
What should be done if a problem or dispute arises?
Raise concerns with the builder as soon as possible. Read the contract’s dispute-resolution process before signing, and make sure you understand what it requires.
Keep records of complaints and the builder’s responses. You can also ask the builder to explain its complaints policy and provide a copy of any written policy. If the contractual process does not resolve the issue, seek independent legal advice about your rights.
For advice about Australian Consumer Law rights, the guidance lists Fair Trading at Access Canberra on 13 22 81.
This is general information, not financial or legal advice. Check the ACT Government regulator page for current requirements and read the Product Disclosure Statement for any insurance policy you rely on.
Sources
FAQ
Is a written building contract compulsory in the ACT?
No. ACT legislation does not require a written contract for residential building work, but the ACT Government strongly recommends one because it records costs, timeframes, rights, responsibilities, variations and dispute procedures.
How should landscaping be handled inside a builder’s package?
Ask whether the landscaping scope is included in the main building contract and review any separate landscaping agreement. Make sure both documents agree on scope, price, dates, variations, handover and defects, and obtain legal advice if they conflict.
Can the builder change the price or timeframe during construction?
Any proposed change should follow the variation process in the contract. The guidance advises obtaining every variation in writing and notes that most contracts require both parties to sign variations. The builder may refuse a request in circumstances specified by the contract.
Is there a cooling-off period for an ACT building contract?
No mandatory cooling-off period applies. You should therefore be ready before signing because changing your mind after signing may lead to a contractual penalty.
Does project insurance cover all landscaping work?
Do not assume that it does. Statutory warranties do not apply to items such as paving, fences and retaining walls, while residential building work insurance, fidelity fund certificates and homeowners warranty insurance serve different purposes. Check the scope of the head contract and the PDS for your own policy.
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