Tasmania Building Contracts: What the Law Requires Before You Sign

Tasmania has a dedicated framework for residential building contracts — the Residential Building Work Contracts and Dispute Resolution Act 2016 — with deposit caps, a cooling-off period, mandatory contract contents, and free mediation for eligible disputes. Many Tasmanian homeowners don't know these protections exist until they need them.

This guide covers what Tasmanian law requires before you sign, what to watch in your contract, and where to go if things go wrong. We're not lawyers and this isn't legal advice.

Building contracts in Australia (overview) → · HIA contract explained →

What Tasmanian law requires

Contracts covered

The Act applies to residential building work contracts worth $20,000 or more. Below that threshold, get legal advice on what applies — but always insist on a written contract.

Written, signed contract

All contracts must be in writing, dated, and signed by both parties.

Mandatory contract contents

Must include:

• Names of owner and building contractor
• Builder's CBOS licence details and number
• Description of the work — plans, drawings, specifications
• Contract price (or estimate) and method of calculating it, including prime cost items and provisional sums
• Practical completion date or method for estimating it
• List of applicable statutory warranties
• Progress payment schedule

Deposit caps

Contract value	Maximum deposit
$50,000 or more	5% of contract price
$20,000 – $50,000	10% of contract price
Any value (if off-site work > 50% of price)	20% of contract price

Progress payment rule

Your builder cannot ask for more than 50% of the contract price until at least half the work is actually completed. Progress payments must be proportionate to work performed.

Cooling-off period

Minimum 5 business days for all residential building work contracts. The builder must provide:

• The Residential Building Consumer Guide (from CBOS)
• A copy of the signed contract

Both within 5 business days of signing. Use the cooling-off period for legal review.

Statutory warranties

Apply to all residential building work regardless of contract value — including that work is performed properly, with suitable materials, in accordance with plans and legislation. These apply even if not written into the contract.

Home Warranty Insurance

Tasmania is introducing a Home Warranty Insurance (HWI) scheme for contracts over $20,000. Check whether your builder is required to hold cover and verify before paying a deposit.

Clauses to watch in your TAS contract

Extensions of time — Track every claim; dispute in writing within the contract's timeframe.

Variations — Written, priced, agreed before work. Verbal site agreements are where disputes begin.

Prime cost and provisional sums — Check allowances are realistic for your actual selections.

Practical completion — Inspect thoroughly before signing; warranty and payment clocks start here.

Notice of Dispute — If a dispute arises later, eligible contracts require a formal Notice of Dispute before CBOS mediation. Good habits start at signing.

Before you sign — TAS checklist

• Written contract for work ≥ $20,000
• Builder's CBOS licence verified
• Deposit within legal cap for your contract value
• Progress payments proportionate to completed work
• Residential Building Consumer Guide received
• Cooling-off period — use for legal review
• All plans and specifications attached
• Allowances realistic

Can you negotiate your building contract? →

If things go wrong in Tasmania

• Building disputes in Tasmania →
• Building disputes in Australia →

The contract is day one. Keep the record from there.

Chronicle Build tracks every variation, email, and site decision against your Tasmanian contract — so you know whether the deal you signed is the build you're getting.

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Frequently asked questions

What is the maximum deposit in Tasmania?

Under the Residential Building Work Contracts and Dispute Resolution Act 2016: 5% for contracts of $50,000 or more, 10% for contracts between $20,000 and $50,000, and 20% where off-site work exceeds 50% of the contract price. A builder cannot demand more than the legal maximum.

Do I have a cooling-off period in Tasmania?

Yes. All residential building work contracts have a minimum 5 business day cooling-off period. Your builder must provide the Residential Building Consumer Guide and a copy of the signed contract within 5 business days of signing.

What contracts does the Act cover?

Residential building work contracts worth $20,000 or more. Below that threshold, different rules may apply — but a written contract is still strongly recommended.

Must variations be in writing in Tasmania?

Best practice and dispute outcomes strongly favour written, priced variations agreed before work proceeds. The mandatory mediation pathway for disputes also requires you to have attempted direct resolution first.