VBA Contractor Licensing & Domestic Contracts
Statutory requirements under the Domestic Building Contracts Act 1995 and Building Act 1993 (VIC). Verify registered practitioners, Domestic Building Insurance (DBI), and statutory deposit caps.
$10,000 Registration Threshold
Building Act 1993 (VIC)
Any domestic building work, structural landscaping, retaining wall construction, or decking costing more than $10,000 (incl. labor, materials, and GST) must be performed by a registered building practitioner with the VBA.
$16,000 Mandatory DBI Insurance
Domestic Building Insurance (VMIA)
Contracts exceeding $16,000 (incl. GST) legally require Domestic Building Insurance (DBI) underwritten through the Victorian Managed Insurance Authority (VMIA) before receiving any deposit.
Victorian Statutory Deposit Limits
Under Section 11 of the Domestic Building Contracts Act 1995 (VIC), strict percentage caps apply to advance deposits based on total contract value.
Contracts Under $20,000
Maximum statutory deposit is capped at 10% of the total contract price.
Contracts $20,000 and Over
Maximum statutory deposit is capped at 5% of the total contract price.
VBA Registration Categories
Practitioners must hold registration matching the specific structural scope of works.
Domestic Builder (Unlimited)
Authorised to manage and coordinate all domestic building work, new builds, renovations, and structural trade subcontracts.
Domestic Builder (Limited)
Restricted to specific domestic trade scopes (e.g., DB-L Structural Landscaping, DB-L Retaining Walls, DB-L Concrete, DB-L Framing).
Statutory Protections & Dispute Pathways
5-Business-Day Cooling-Off Period
Under Section 31 of the Act, homeowners may withdraw from a domestic building contract over $10,000 within 5 clear business days of receiving the signed document.
Domestic Building Dispute Resolution Victoria (DBDRV)
Before applying to VCAT for domestic building disputes, parties must first undertake free, conciliated dispute resolution through DBDRV.