Does a townhouse builder have to be registered?

In Victoria, the BPC says domestic building work worth $10,000 or more requires a registered building practitioner and a written contract. The register shows what type of work each practitioner is allowed to do. Other states have their own licensing rules and dollar thresholds, so check the regulator for the state where the townhouses will be built.

What is the most a builder can ask for as a deposit?

Under the Domestic Building Contracts Act 1995, deposits cannot exceed 10% where the total contract price is under $20,000 and 5% where it is $20,000 or more. On a $900,000 contract, 5% is $45,000. Progress payments are separate and are set out in the contract's payment schedule.

What does Home Warranty cover, and for how long?

For contracts signed from 1 July 2026, Home Warranty may assist if eligible work is incomplete, defective or non-compliant and the builder cannot or will not fix it. It covers major defects for up to 6 years and other defects for up to 2 years after completion, with a limit of up to $400,000 per home.

How do I check a builder's disciplinary history?

The BPC's Compliance and Enforcement Register lists disciplinary action, prosecutions and court outcomes, suspensions, cancellations and conditions. The BPC warns that not every complaint, enquiry or inspection appears on the public registers, so a search is not a complete picture.

Do I get a cooling-off period?

The BPC page on contracts mentions a cooling-off period but not its length, and says that if a lawyer reviews the contract before you sign, you are no longer entitled to cooling-off afterwards. The contract should state the position. A lawyer or the BPC (1300 067 088) can confirm the details for a specific contract.

How do you choose a townhouse builder?

In Victoria, domestic building work worth $10,000 or more needs a registered builder and a written contract, and a builder's registration, conditions and disciplinary record can be checked on the Building and Plumbing Commission (BPC) website. For contracts signed on or after 1 July 2026, the builder must also arrange Home Warranty insurance. This guide sets out what to check, with Victoria as the main example, as at October 2026. It does not name or rank any builder.

Check the type of work a builder is registered to do, not only that a registration exists. The BPC register shows what work a practitioner is allowed to do and whether the registration has conditions or limits.

Checked October 2026. Rules, rates and prices change, so confirm anything that matters with the source linked below.

Check registration first

The BPC's "find and check a practitioner" tool lets anyone search by practitioner name, business name, registration or licence number, location or type of work. It shows whether registration is current, what work the practitioner is allowed to do and whether any conditions or limits apply. A separate Compliance and Enforcement Register lists disciplinary action, prosecutions and court outcomes, suspensions, cancellations and conditions.

The BPC cautions that not every complaint, enquiry, inspection or compliance activity appears on the public registers, so a clean search is one input rather than a full record. The practitioner page does not list the registration categories. The BPC's builder registration pages or its helpline on 1300 067 088 cover them.

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Insurance: Home Warranty and Domestic Building Insurance

Which scheme applies depends on when the contract was signed.

	Domestic Building Insurance	Home Warranty
Applies to contracts signed	Before 1 July 2026	On or after 1 July 2026
Work value	Over $16,000	More than $20,000
Cover	Up to $300,000 for homes up to three storeys	Up to $400,000 in total per home

Home Warranty may assist if eligible work is incomplete, defective or non-compliant and the builder is unable or unwilling to finish or fix it. Cover for major defects runs up to 6 years after completion and for other defects up to 2 years. Claims for incomplete work are capped at 30% of the contract price and must be made within 12 months of the insurable event. The BPC lists new homes and residential buildings up to three storeys that contain more than two homes as eligible, and says buildings of more than three storeys with more than two homes are not.

The registered builder pays the premium, before the earlier of 10 business days after the contract is signed or the start of work, although the BPC says the cost may be reflected in the contract price. A Notice of Cover is issued to the owner.

The three dollar figures on BPC pages apply to different things. Work of $10,000 or more needs a registered builder and a written contract (the BPC's Agreements and contracts page says "or more", while its Engaging a builder page says "more than", so a job priced at exactly $10,000 is one to confirm with the BPC). The $16,000 figure is the old Domestic Building Insurance threshold, and Home Warranty applies above $20,000. A three-townhouse project is well above all three.

Quotes and references

The BPC suggests getting at least three quotes for the same job, each itemised so hidden costs are visible. When comparing, it points to brand names and specifications for materials, labour costs, inclusions and exclusions, waste removal, warranties, compliance certificates, how long the quote is valid and whether pricing is fixed or hourly.

For references, the BPC recommends checking at least three independent sources that recommend a practitioner, looking across review sites, forums and social media, and noting how the practitioner responds to bad reviews. For electrical or plumbing work, check that subcontractors hold the right credentials and can issue compliance certificates.

The contract

Victorian contracts for work worth $10,000 or more must be in writing with a registered builder. The BPC says a contract should cover:

the scope of work, with inclusions and exclusions
timeframes, including start dates
how delays and extra costs are handled
how variations are priced
who supplies materials
the work to be completed at each stage
the progress payment schedule and due dates
who does the work and is listed on the permit

Deposits are capped by the Domestic Building Contracts Act 1995: 10% if the contract price is under $20,000 and 5% if it is $20,000 or more. On a $1,000,000 contract, the most a builder can ask as a deposit is $1,000,000 x 5% = $50,000.

Cooling-off: the BPC notes that having a lawyer review the contract before signing means you are no longer entitled to a cooling-off period afterwards. The length of the period is not stated on the page, so ask the BPC or a lawyer.

Fixed price, cost plus, prime cost items and provisional sums

Fixed price: the costs are set at the start, and the builder pays for extra costs if the project goes over budget unless the contract says the owner covers them.
Cost plus: the owner pays actual cost plus a percentage. The BPC says it is limited to projects worth $1 million or more. For a three-townhouse project, what it costs to build shows a range that straddles that line.
Prime cost items: materials whose price is not yet set.
Provisional sums: estimates for work whose cost cannot be fixed in advance.

Prime cost items and provisional sums are where a fixed-price contract can still move, so the number and size of each is worth comparing across quotes.

Other states

Queensland: the Queensland Building and Construction Commission (QBCC) publishes a licensee register. QBCC says home warranty insurance applies to residential construction work valued at more than $3,300, that the contractor arranges it as part of the contract before work begins, and that work on a multiple dwelling of more than three storeys is not insurable. New South Wales: Building Commission NSW is the building industry regulator. Other states have their own regulators, thresholds and warranty schemes, so check the state authority before engaging a builder.

If you are also arranging funding, published lender pages ask for the signed contract and payment schedule, which townhouse development finance and construction loans covers. For how the build fits in the wider process, see how to subdivide and build townhouses.

Common questions

Does a townhouse builder have to be registered?: In Victoria, the BPC says domestic building work worth $10,000 or more requires a registered building practitioner and a written contract. The register shows what type of work each practitioner is allowed to do. Other states have their own licensing rules and dollar thresholds, so check the regulator for the state where the townhouses will be built.
What is the most a builder can ask for as a deposit?: Under the Domestic Building Contracts Act 1995, deposits cannot exceed 10% where the total contract price is under $20,000 and 5% where it is $20,000 or more. On a $900,000 contract, 5% is $45,000. Progress payments are separate and are set out in the contract's payment schedule.
What does Home Warranty cover, and for how long?: For contracts signed from 1 July 2026, Home Warranty may assist if eligible work is incomplete, defective or non-compliant and the builder cannot or will not fix it. It covers major defects for up to 6 years and other defects for up to 2 years after completion, with a limit of up to $400,000 per home.
How do I check a builder's disciplinary history?: The BPC's Compliance and Enforcement Register lists disciplinary action, prosecutions and court outcomes, suspensions, cancellations and conditions. The BPC warns that not every complaint, enquiry or inspection appears on the public registers, so a search is not a complete picture.
Do I get a cooling-off period?: The BPC page on contracts mentions a cooling-off period but not its length, and says that if a lawyer reviews the contract before you sign, you are no longer entitled to cooling-off afterwards. The contract should state the position. A lawyer or the BPC (1300 067 088) can confirm the details for a specific contract.

Keep reading

Sources

This is general information, not financial, tax or legal advice. Get advice that suits your situation before you buy.