The Department of Local Government, Industry Regulation and Safety, Building and Energy division (LGIRS) can provide further information and assistance to homeowners about your rights and responsibilities under WA building laws.
Australian Consumer Law contracts – ACCC information is avaiable at: https://www.accc.gov.au/consumers/buying-products-and-services/contracts
This page includes a video that details the building process and is available with translated captions.
Your protections
Notice for the homeowner
Home-building work includes building a new home, renovating, repairing or altering an existing home or placing a new home on a lot of land. It also includes associated work such as installing a swimming pool, cabinetry or tiling, constructing a garage, shed or pergola, or landscaping.
Your rights and protections for contracts involving this type of work, where the contract is for a fixed-cost between $7,500 and $500,000, are covered by the Home Building Contracts Act 1991 (the Act), and they apply whether or not your builder is a registered builder. Before you sign a contract, your builder must provide you with a copy of the ‘Notice for the homeowner’, which outlines their legal requirements and obligations and protections afforded to you as the owner.
Copies of the Home Building Contracts Act 1991 and the Home Building Contracts Regulations 1992 are available on the Parliamentary Counsel's Office website.
Home indemnity insurance
Home indemnity insurance (HII) is required for all building work requiring a building permit and valued at more than $20,000. HII is an important safeguard for homeowners and is there to help in the event of the death, disappearance or insolvency of your builder.
HII can cover damages, such as the loss of a deposit (up to $40,000) and incomplete or defective building work (up to $200,000).
Your builder must give you a copy of your HII certificate. You shouldn’t make any payments to your builder until HII is in place. Your policy can be checked using the online register maintained by QBE at https://www.qbe.com/au/builders-warranty/certificate-register
It’s important to note that a preparation of plans agreement, or PPA, doesn’t form part of a home building work contract so it isn’t covered under a HII policy.
Home indemnity insurance fact sheet
Building challenges
Deposits, progress payments and price increases
Prior to work commencing your builder will likely ask you for an initial deposit. Once work gets underway, progress payments will be requested for stages of work as they are completed. The Act provides for limits and conditions on these payments and it’s important you understand how they work, as they can affect your home indemnity insurance.
The maximum deposit that your builder or tradesperson can require before they start work is 6.5 per cent of the contract price. The Act does not apply to contracts that are valued below $7,500 or over $500,000 and therefore there is no limit to the amount of deposit a builder may request for contracts with values below or over these amounts. When paying deposits on contracts valued over $500,000 it is important to note that the HII coverage for loss of deposits is capped at $40,000.
There is a limited exception to the rule regarding deposits that applies for off-site cabinetry work, where the value of that work represents more than 50 per cent of the contract value. In this limited circumstance, a deposit of up to 20 per cent can be requested by the builder.
Once work has started, you should only make progress payments for work that has actually been done or for materials have already been supplied. For example, your builder can’t ask for a progress payment for the purchase and delivery of bricks until the bricks have actually been delivered to the site. With the exception of the deposit, upfront payments to your contract are not allowed and, if made, can affect any claim you may have under your home indemnity insurance policy.
There are limited circumstances when a builder may pass on price increases during the term of a contract. Once such circumstance is if there is a delay experienced in the obtaining of a building permit and subsequent commencement of work for which the builder is not to blame. In such cases, the builder may pass on a price increase to an owner under the contract for any addition costs that may be incurred as a result of that delay.
If you believe a price increase is unjustified or excessive, you can lodge a complaint with LGIRS.
Building contracts and progress payments
Extensions of time
Due to factors outside the control of the builder, they may issue a variation to the contract extending the time for completion. Common examples of when this may occur can be due to inclement weather or when materials specified in your contract may be unavailable and they may be having trouble sourcing an acceptable alternative.
If you’re asked for an extension of time, make sure you review your contract, ask your builder to outline the reasons for the request and to confirm the relevant related clauses in your contract.
Termination of the contract
If you are thinking about terminating your contract, it’s important to understand your obligations, as well as your rights, to avoid potentially costly consequences. If you terminate your contract, you may be liable to pay the builder damages and expenses including any loss of profit.
If you are unsure of your rights and of possible consequences from terminating a contract, you should seek independent advice.
A guide on price increases to home building work contracts
Dispute resolution process
An owner or builder under a contract, who believe there has been, a breach of the contract, or a provision of the Act, may lodge a home building work contract complaint with LGIRS within three years of the contract date, or the cause of action arising. LGIRS remains impartial when dealing with complaints, with decisions being made based on the individual merits of each complaint.
Tips for each stage of the building process
Topics for each stage of the building process
- Choosing a block of land and a builder
- Considering design and plans
- Signing the contract
- Before construction starts
- During construction
- Handover and moving in
Video with translated captions
The video is available with translated captions in the following 10 languages.
- Chinese Simplified (Mandarin)
- Vietnamese
- Korean
- Arabic
- Chinese Traditional (Cantonese)
- Hazaragi
- Karen
- Thai
- Punjabi
Class 10a builder registration threshold Q&As
As of 1 July 2026, the construction of Class 10a buildings valued at less than $50,000 do not need to be carried out by a registered building contractor in Western Australia.
Building permit requirements for Class 10a buildings still apply.
Most other building work valued at $20,000 or more and requiring a building permit must still be carried out by a registered builder.
What is a Class 10a building?
The National Construction Code defines a Class 10a building as “a non-habitable building including a private garage, carport, shed or the like”.
Roofed outdoor areas, commonly referred to as “patios” in Western Australia, are considered Class 10a buildings. Contact your local government permit authority if you are uncertain about the classification of a proposed building.
Why is the registration threshold different for these buildings?
The $50,000 registration threshold for Class 10a buildings reflects their lower risk profile. Class 10a buildings are not lived in and are less complex to construct. Some even come in kit form.
Due to rising building costs over recent years, the change reduces red tape while maintaining safety and compliance with minimum building standards.
Benefits include:
- Homeowners will have more options, and possibly lower costs, when adding these types of buildings to their properties.
- Smaller service providers, who do not hold builder registration, can take on a greater scope of work.
- Registered building contractors can continue to work on Class 10a buildings, but the changed threshold enables them to focus on bigger projects if needed.
How will building safety, compliance and other protections be maintained?
Building permit requirements remain in place, and all building work must still comply with applicable building standards.
Owners must ensure that a building permit, where required, is obtained from their relevant local government before construction commences. Penalties apply if a building permit is not granted.
Complaints about unsatisfactory or defective building work can be lodged with the Building Commissioner. A contractual complaint can also be made in relation to home building work contracts valued between $7,500 and $500,000, and the maximum deposit that can be requested is 6.5 per cent of the total contract cost.
Contracts must be in writing and signed by both parties. Progress payments must only cover actual work performed.
Other protections, such as the Australian Consumer Law, also apply.
Which businesses can construct Class 10a buildings under $50,000?
Smaller service providers and “home handyman” businesses can now construct sheds, carports, patios, private garages or the like up to $50,000.
Registered building contractors can also continue to carry out Class 10a work of any value.
Consumers are encouraged to do their research and ensure the service provider has the relevant skills and experience to complete the project in accordance with applicable building standards and approved plans set out in the building permit.
Can homeowners build a Class 10a building themselves?
Yes. The new threshold means a homeowner can build a Class 10a building on their own without obtaining owner-builder approval if the work is valued at less than $50,000.
All building work must comply with the applicable building standards (National Construction Code). The homeowner must also ensure compliance with the requirements and conditions of the relevant building permit and any other approvals, such as development approval.
Are there exemptions for builder registration for other building classes?
Yes. If a building permit is not required, a registered builder is not required to complete the works. Your local government can advise on building permit requirements.
Likewise, building work of any kind valued at under $20,000 or work carried out in exempt areas of the State does not require a registered builder.
More information is available in the Do I need to be a registered builder? fact sheet.
Print this page
