Money and paperwork are where a lot of home jobs go sideways. The good news is you already have more protection than you might think, and a few simple habits keep you safe. Here’s a plain rundown of deposits, contracts and the rights you hold.
This is general info to help you ask better questions, not legal advice. Rules and dollar thresholds change and vary by state, so always check with your own state’s body.
What a fair deposit looks like
A deposit is meant to cover a tradie’s early costs, like ordering materials, not to fund their whole business. For most small jobs you’ll pay little or nothing up front and settle once the work is done.
For bigger building work, many states actually cap how much deposit a tradie can ask for. The cap is usually a small percentage of the total job. The exact figure differs from state to state, so check the rules where you live before you hand anything over.
Here’s the simple rule of thumb. A modest deposit is fine. A demand for a big slab of cash up front, especially cash in hand with no receipt, is a red flag. So is “I need it today or I lose my spot.” Genuine tradies do not work that way. If something feels off, slow down and read our guide on how to spot a dodgy tradie.
When you need a written contract
For a quick tap washer or a power point, a clear quote and a confirming text is usually enough. Once the job gets bigger, though, most states require a proper written contract, and that’s there to protect you.
The dollar value that triggers a mandatory written contract varies by state, and so does what must be in it. Your state’s building authority or fair trading office (for example Fair Trading in NSW, the QBCC in Queensland, the VBA and Consumer Affairs in Victoria, or the relevant body in your state) sets the threshold. When in doubt, ask for it in writing anyway. A good tradie won’t blink.
While you’re checking, it’s worth confirming they hold the right licence for the work too. Our guide on tradie licences walks through who needs one and how to verify it.
What a good contract includes
You don’t need a law degree to read a contract. You just want the basics spelled out so there are no surprises later. A solid contract covers:
- The tradie’s full name, business name, ABN and licence number
- A clear description of the work, including what is and isn’t included
- The total price, or how the price is worked out if it isn’t fixed
- A start date and a rough timeframe for finishing
- Payment terms, including any deposit and progress payments
- What happens with variations (changes to the job) and how they get priced and approved
- Any warranty on the work, and who handles defects
If a number or a date is vague, ask for it to be pinned down before you sign. Verbal promises are hard to enforce later.
Progress payments, not lump sums
For larger jobs you should pay in stages, tied to the work actually reaching agreed milestones. Think slab down, frame up, lock up, then completion. You pay each stage as it’s finished and you’re happy with it.
This protects everyone. The tradie gets paid steadily as they go, and you’re never far ahead of the work. Be wary of any plan that has you paying for big chunks of work that haven’t happened yet.
The rights you already have
On top of any contract, Australian Consumer Law gives you consumer guarantees that cannot be signed away. For services like trade work, this means the job must be:
- Carried out with due care and skill
- Fit for the purpose you asked for
- Done within a reasonable time if no time was agreed
If the work falls short, you’re entitled to have the problem fixed, and in some cases to compensation. The first step is usually raising it politely but in writing, giving the tradie a fair chance to put it right.
Keep your records
This is the boring bit that saves you the most grief. Keep everything in one place: quotes, the contract, invoices, receipts, photos of the work, and any texts or emails where things were agreed or changed. If a dispute ever comes up, that paper trail is your best friend, and it makes any claim far simpler.
A quick photo of the job at each stage takes seconds and can be worth its weight in gold later.
When you’re ready to start, get a free quote and we’ll match you with one vetted local tradie who does things the right way. No pressure, no five sales calls.