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Domestic Building Contracts Amendment Bill 2025

ACA VIC/TAS has been delivering important advocacy work on behalf of our members and the broader construction industry. The Victorian Parliament is currently considering the Domestic Building Contracts Amendment Bill 2025, and the ACA has made a comprehensive submission supporting its intent while proposing key improvements to better protect homeowners and support small builders.

LEGISLATION

The Victorian government introduced legislation into Parliament in June 2025 to amend the Domestic Building Contracts Act 1995. Significant changes have been proposed, which will affect contract rules, builder obligations and consumer protections.

ACA POSITION

While we support the State Government’s efforts to enhance construction practices, we believe the current Bill overlooks important opportunities and could lead to unintended consequences. Based on our members’ extensive expertise in construction contracts and industry dynamics, we have identified three key areas for improvement.

Fairer Domestic Building Contracts (Projects up to $1 million)

Most homeowners face significant power imbalances when negotiating contracts. We are advocating for standardised contract templates that include:

  • Clear completion dates with realistic milestones
  • Transparent payment schedules tied to verifiable work completion
  • Accessible dispute resolution mechanisms
  • Meaningful cooling-off periods for independent advice

Shorter Payment Cycles

Current payment structures force builders to carry substantial financial burdens for months, particularly impacting small builders and limiting competition. We are recommending monthly progress payments based on verified work completion rather than major milestone payments.

Building Permits in the Contractual Process

We have identified significant opportunities to streamline both the amendment and contractual processes by requiring building permits before contracts are signed. This would eliminate redundant clauses (like the foundation information requirements) and provide greater protection against cost variations.

EXPECTED OUTCOMES

Our recommendations would:

  • Reduce disputes and lower administration costs
  • Allow builders to focus on delivering quality homes
  • Reduce strain on VCAT resources
  • Create a more efficient system delivering more houses at better prices
  • Increase the supply of small builders in the market

This advocacy work directly supports our members’ interests by promoting fairer, more efficient contracting processes that benefit both architects and the clients we serve.

We will continue to monitor the Bill’s progress and keep you informed of developments.

For any questions about our submission, please contact Brendan Shannon, ACA VIC/TAS Advocacy Spokesperson via email.