Signing a building contract in Victoria is one of the most significant financial commitments you will ever make. Once you sign, there is no cooling off period. The contract is legally binding and walking away from it is expensive and complicated.
The best protection you have before that moment is asking the right questions. Not the polite ones. The ones that reveal whether the builder in front of you is genuinely prepared to deliver your project, or whether they are telling you what you want to hear to get the signature.
This checklist covers the ten questions every Victorian homeowner should ask before signing anything. Take it to your builder meetings. Use it to compare how different builders respond. A confident, experienced builder will welcome every single one of them.
Your pre-signing checklist
Are you registered with the VBA and fully insured?
Verify at vba.vic.gov.au – registration number and Domestic Building Insurance
Is this a fixed-price contract and what is excluded?
Ask for every provisional sum and a realistic range for each one
Who will I be dealing with day to day throughout the build?
Get a name and confirm you can contact them directly
Have you built on a block like mine before?
Ask for examples: sloping blocks, coastal sites, relevant overlays
Can I speak to two or three of your past clients?
Ask about time, budget, communication and whether they would build again
How do you handle variations and cost changes?
Everything in writing, approved before work proceeds, no exceptions
What does the build timeline look like and what causes delays?
Ask for milestones including permit approval and construction stages
What warranties do you provide and how long do they last?
Statutory minimums: 2 years non-structural, 10 years structural in Victoria
How do you manage council permits and planning approvals?
Especially relevant for Peninsula overlays, BAL ratings and heritage zones
What happens if something goes wrong?
Ask about the dispute process, VCAT history, and defect resolution timeframes
The 10 questions explained
1. Are you registered with the VBA and fully insured?
This is the non-negotiable starting point. Every builder working in Victoria must hold a current registration with the Victorian Building Authority. You can verify this yourself at vba.vic.gov.au by searching by name or registration number and confirming the registration is current with no disciplinary actions recorded.
Beyond registration, your builder is legally required to hold Domestic Building Insurance for any domestic building work over $16,000 in Victoria. This insurance protects you if the builder becomes insolvent, dies, or disappears before completing the project. Ask to see both documents before any further conversation.
2. Is this a fixed-price contract and what exactly is excluded?
A fixed-price contract sounds straightforward but the detail is in what is and is not included. Many builders quote a fixed price that excludes site costs, landscaping, driveways, some fixtures and fittings, and items listed as provisional sums.
A provisional sum is an estimated cost for an item that has not been fully specified at the time of contract. It can and does change. Ask your builder to identify every provisional sum in the contract and give you a realistic range for each one.
3. Who will I be dealing with day to day throughout the build?
This is one of the most important questions and one of the most revealing. In many building companies, you deal with a sales consultant during the design and contract phase, then get handed to a project manager, then to a site supervisor.
Ask for the name of the specific person who will be your primary contact throughout the build and whether you will be able to reach them directly. At Alternate Vision, Nathan is the HIA award-winning builder and the direct contact for every client from the first conversation through to handover. That level of access is not universal in the industry and it is worth confirming before you commit.
4. Have you built on a block like mine before?
Site conditions on the Mornington Peninsula vary significantly. Sloping blocks, coastal exposure, clay soil, rock, vegetation overlays, and bushfire zones all create specific building requirements. A builder who has not encountered your site conditions before will learn on your project, which means delays and cost variations.
Ask for specific examples of projects the builder has completed in similar conditions. If your block is sloping, ask to see sloping block builds. If you are in a coastal position, ask about their experience with corrosion-rated materials and coastal specifications.
5. Can I speak to two or three of your past clients?
References are standard practice in most industries and building should be no different. A builder who is proud of their work will connect you with past clients without hesitation.
When you speak to references, ask specific questions: was the project delivered on time and on budget, how did the builder communicate when issues arose, was the quality of the finished home what they expected, and would they use the same builder again.
6. How do you handle variations and cost changes?
A variation is any change to the original scope of work. Ask how variations are documented, how they are priced, and at what point you need to approve them. Every variation should be agreed in writing before any additional work proceeds. Verbal agreements about changes are not enforceable and are a significant source of disputes.
7. What does the build timeline look like and what causes delays?
Ask for a realistic timeline with the major milestones outlined: design finalisation, permit submission, permit approval, construction start, key stages, and practical completion. In Victoria, council permit approval alone can take several weeks to several months depending on the complexity of the application and the relevant overlays.
8. What warranties do you provide and how long do they last?
In Victoria, builders are required by law to provide a defects warranty period. For structural defects this extends to ten years. For non-structural defects it is typically two years. Ask whether the builder offers any warranty beyond the statutory minimum and how the warranty claim process works in practice.
9. How do you manage council permits and planning approvals?
For most building projects on the Mornington Peninsula, council approval is required before construction can begin. Ask whether the builder manages the permit process on your behalf and how long they expect the permit process to take for a project like yours.
10. What happens if something goes wrong?
No one wants to think about this at the start of a building project but a professional builder will have a clear, confident answer. Ask what the formal process is if a dispute arises and how defects identified after handover are handled and within what timeframe.
Good answer vs bad answer: the 5 questions that matter most
| Question | ✓ Good answer | ✗ Bad answer |
|---|---|---|
| VBA registered and insured? | Provides registration number and insurance certificate on the spot, no hesitation | Says yes but cannot produce documents, or asks you to trust them |
| Fixed-price contract? | Yes, with a clear written list of exclusions and realistic provisional sum estimates | Yes, but cannot explain what is excluded or waves away provisional sums as minor |
| Day-to-day contact? | Names a specific person and confirms you can reach them directly throughout the build | Gives a vague answer about the project management team with no specific name |
| How are variations handled? | All variations documented in writing and approved by you before any work proceeds | We sort it out as we go, or we reconcile costs at the end |
| What if something goes wrong? | Explains the formal process clearly, comfortable discussing it, no unresolved disputes | Becomes defensive or dismissive, says problems never happen with them |
Frequently asked questions
Is there a cooling off period after signing a building contract in Victoria? No. In Victoria there is no cooling off period on a building contract. Once both parties have signed, the contract is legally binding. This is why it is critical to ask all your questions and understand every clause before signing. If you have any doubt about the terms, seek independent legal advice first.
What is the maximum deposit a builder can ask for in Victoria? For domestic building contracts over $20,000 in Victoria, the maximum deposit a builder can legally request is 5% of the contract price. Be cautious of any builder asking for a larger deposit before work has commenced.
What is a provisional sum and why does it matter? A provisional sum is an estimated cost included in a contract for work or materials that have not been fully specified at the time of signing. It is not a fixed price and it can increase significantly. Common provisional sums include site costs, soil testing, some fixtures, and connection fees.
What is Domestic Building Insurance in Victoria? Domestic Building Insurance is a legal requirement for builders undertaking domestic building work over $16,000 in Victoria. It protects you as the homeowner if the builder becomes insolvent, dies, or disappears before completing the project. Your builder must take out this insurance before accepting any payment from you.
Can I get independent legal advice before signing a building contract? Yes, and it is strongly recommended for any major building project. A construction lawyer can review the contract terms, identify unusual clauses, and advise on your rights and obligations before you commit.
What is the defects warranty period for new homes in Victoria? In Victoria, builders must rectify non-structural defects identified within two years of practical completion and structural defects within ten years. Document any defects in writing as soon as you identify them and submit them formally to the builder within the warranty period.
A note on how Alternate Vision answers these questions
Alternate Vision is a registered, insured custom home builder on the Mornington Peninsula with over 16 years of Peninsula experience. Nathan, the HIA award-winning builder, is the direct contact for every project from the first consultation through to handover. Every project uses a fixed-price contract with clearly itemised inclusions. Variations are documented and approved in writing before any additional work proceeds.
You can view completed Peninsula projects in the project gallery and see recognised industry awards at the awards page.
If you would like to put these questions to Nathan directly, book a free consultation. There are no sales consultants in between.
