Residential Building Contracts for Works less than $5,000.00
There is no prescribed contracting requirements where the contract price or the reasonable market cost of the labour and materials involved is less than $5,000.00 (inclusive of GST). However, it should be noted that:
- The maximum deposit that may be claimed remains 10% (Section 8).
- The statutory warranties will still be implied into the contract (Section 18B(1)).
Notwithstanding that there is no requirement for the contract to be in writing, it remains a recommended practice to make a written contract to:
- avoid disputes in relation to the price or agreed scope of works,
- include important contractual terms that create additional rights where recovery action is required (for example to recover interest and legal costs), and
- limit or exclude liability for consequential losses to the maximum extent permitted by law.
To avoid disputes about variations, including in relation to the extra costs of variations, a written form of contract variation should be documented and signed by the parties whenever the scope of works are varied.
Call now to speak to one of our Building & Construction Lawyers
1300 553 343
By Sam Roberts,
Managing Director, Accredited Specialist (Commercial Litigation)
