Our industry
For consumers
For builders
Useful contacts

Our industry

The building and construction industry is the most important sector in Victoria, delivering significant employment, Gross State Product (GSP) and taxation revenue.

We are responsible for delivering the homes, roads, transport, parks, hospitals, schools and aged-care facilities necessary for Victorians to maintain the living standards that they have come to expect.

The construction sector is the third largest employer in the state, generating about 358,900 jobs. Around 309,100 construction jobs are full-time, making the industry the largest full-time employer in the state.

The sector continues to make a significant economic contribution to the GSP, accounting for about 8.5 per cent of the state’s total goods and services produced in FY 2021/22, or $39.6 billion in gross value added. This makes it the fifth-largest sector in terms of economic output.

Building and construction remains a large part of the state’s economy. When local government tax is included, it accounts for over 56% of the state’s tax revenue. This reliance highlights that the government must support the sector through policy initiatives.

There were 127,370 firms in the Victorian building and construction industry at the end of June 2022. This makes construction the largest industry by the number of firms. 79,883 or 62.7% of these businesses, are sole traders.

Master Builders is the peak body representing a range of stakeholders in Victoria’s building and construction industry. Our 6500 members include suppliers and manufacturers, commercial and residential builders, tradespeople, and apprentices. Through regular engagement with the government, we represent and lobby on behalf of our members and the industry as a whole.

Employment

The building and construction sector is a significant provider of jobs for men and women in a range of careers including trade apprentices, engineers and consultants. Our members range from young people looking for their start in the industry right through to retired builders and building consultants.

Largest full time employer358,900 total full and part time jobs 

Value of construction work completed

The value of construction work done as a proportion of total economic activity in the FY 2021/22.

Proportion of total economic activity 12.2%

Firms

Building and construction firms are varied, ranging across the full gamut of housing and domestic builders through to large construction firms. They are all important and contribute to building this great state.

Largest sector by number of firms127,370 firms

For consumers

Are you planning a renovation? Or perhaps you’re building a new home? Not sure how to start the process and what you should be looking out for? We understand that building or renovating your own home is one of the most significant investments of your life. It can be intimidating and overwhelming. 

In this section, we aim to answer some of the more common questions you may ask, with further useful contacts outlined below. If, however, your questions aren’t answered here, please contact us on (03) 9411 4555.

Consumer FAQs

How do I find the right people for my job?

Once you’ve decided on what job you need done, come and see us. Master Builders has a database of quality builders and tradespeople that you can search for according to your location and job type. Find a Master Builder here or call us on (03) 9411 4555.

What questions should I ask my builder before employing them?

1. Are you registered?

You should always ensure that your builder is a registered domestic building practitioner. If you are unsure, search for their information on the (VBA) practitioner search page and practitioner disciplinary register page or phone the VBA on (03) 9285 6400.

2. Are you a Master Builder?

Master Builders must fulfil a series of stringent criteria to obtain and retain membership. If you employ a Master Builder, you know that they are expected to be fair and reasonable and that their work will be of a high standard. If you want to check whether your builder is a Master Builder, ask them or call us on (03) 9411 4555.

3. Do you have references of previous work?

As with any ‘job interview’ a builder or tradesperson should be able to support their qualifications and abilities with references. Ask to see examples of their work and client testimonials and references.

What contracts do I need?

You or your builder can select a standard building contract. This contract must be in writing and include details such as:

  • The contract price
  • Deposits and progress payments required by law
  • A description of the building work
  • Plans and specifications
  • Advice on the five day cooling off period

Your building contract should comply with the Domestic Building Contracts Act 1995 and be fair and reasonable to both you as the consumer and to the builder. Your primary obligation is to pay the builder promptly when due. You must also provide free and uninterrupted access to the site.

Master Builders have the following contracts available to make it easier for you and your builder:

  • New Homes Contract (HC-7)
  • Home Improvements Contract (HIC-6)
  • Domestic Cost Plus Contract (CP-2)
  • Minor Works Contract (MW-2)

You and the builder may agree to include special conditions. We strongly recommend however that you do not add to, subtract from or alter any standard contract without prior legal advice. For more information on contracts, call us on (03) 9411 4555.

Do I need insurance?

Depending on the cost and nature of your project, there are a range of insurances that may be required.

Your builder must take out Domestic Building Insurance (DBI) for work costing more than $16,000. This protects you from defective or incomplete work for up to six years if your builder dies, disappears or becomes insolvent.

You can also claim on DBI with the Victorian Managed Insurance Authority (VMIA) if your builder fails to comply with a final order from the Victorian Civil and Administrative Tribunal (VCAT) or a court.

For more information, visit Master Builders Insurance Services or call us on (03) 9411 4555.

What is a building surveyor and do I need one? What about planning and building permits?

A building surveyor is someone trained to understand the building control process. You must appoint a surveyor, through your builder. Only one surveyor can be appointed per building project. Master Builders has a department of surveyors available but you can also use a municipal building surveyor or other private surveyor.

The surveyor is responsible for ensuring buildings are safe, accessible and energy efficient. They will be required to sign-off the mandatory stages of construction and therefore will remain involved for the duration of the project. Either the surveyor or inspectors will routinely carry out inspections.

Once the work is complete, the surveyor will issue the occupancy permit of certification of final inspection. 

Depending on the size and nature of the project, you may need a planning and building permit. Planning permits are issued by the municipality. You and your builder will need to work together to obtain the relevant permits. Master Builders building services department can help. Our team of building surveyors, inspectors and support staff are well placed to help you no matter where you are in Victoria.

We have metropolitan and regional offices ( Albury-Wodonga, Ballarat, Bendigo, Geelong, Shepparton and Warrnambool). For more information, contact us on (03) 9411 4555 for metropolitan Melbourne or click here for the contact details of the regional office nearest you.

What happens if I want access to the building site during construction?

If necessary, you have a right to ‘reasonable access’ to the site on ‘reasonable terms’. This should always be under your builder’s supervision and control.

Am I allowed to deny site access to the builder during construction?

You are required to provide free and uninterrupted access to the site so that your builder can fulfil all works necessary under contract. If you deny access, or ask the builder to leave the site, then there are contractual implications and your builder can, and should, obtain urgent legal advice.

What is defective building work?

Defective building work is defined by the domestic building legislation as:

  • A breach of any of the builder’s implied warranties or
  • A failure to maintain the standard or quality of work specified in the contract

If an alleged defect falls within one of the above categories and is notified to the builder within 10 years of the date of Certificate of Occupancy or Certificate of Final Inspection the builder will be responsible for rectifying the defect and any consequential damage.

If your builder then fails to fulfil their obligations, you may be able to bring an action in the Victorian Civil and Administrative Tribunal (VCAT) or other appropriate jurisdiction.

What recourse do I have if I am not happy with the standard of work performed by my builder?

Whenever possible, we recommend you first communicate openly with your builder about your concerns. It’s always best to do this as early as possible so that issues are likely to be rectified.

If, however, this is not possible or successful, there are avenues you can take.

If your builder is a Master Builder

They are bound by our Code of Ethics. We take complaints very seriously and always seek to resolve them appropriately. To file a complaint, we recommend you write to us via email or post (Legal Department, Master Builders Association of Victoria, GPO Box 544, Melbourne 3001). For information about the Master Builders complaint process we recommend you read this. We suggest you include as many details as possible such as the

  • Nature of the problems
  • Details of the builder
  • Photos and plans.

Once we receive your complaint in writing we will forward it to the member involved, requesting a response within 14 days. If there is no response, a reminder will be sent seeking a response within seven days.

Once a response is received, we will seek common ground and follow our complaint resolution process.

If no response is received, the matter may be referred to our Disciplinary Committee. Possible ramifications include reprimand, suspension or membership cancellation.

If your builder is not a member

If they are a member of another organisation, we suggest that you file a complaint with that association.

If they are not a member of any association, the workmanship and quality of your building project is still protected by specific statutory building warranties and general consumer guarantees.

Statutory building warranties compel your builder to practice good workmanship and to deliver upon your contract. You can take legal action for a breach at any time, up to 10 years after the date the occupancy permit or certificate of final inspection is issued.

You are also protected by the Australian Consumer Law (ACL). This law provides statutory guarantees. For example, building work must be carried out with due care and skill, be fit for purpose and be delivered in a reasonable time.

Read more on the Consumer Affairs Victoria website here.

What is an owner builder?

An owner builder is someone who constructs or renovates their own home on their own land. This has become a prevalent practice, predominantly as a way to save money. It should be noted however, that it is a serious responsibility. Appropriately, there are a range of restrictions on owner builders. Since June 2005, owner builders may only obtain building permits if:

  • They first obtain a Certificate of Consent from the Building Practitioners Board.
  • They ensure they read, understand and fully comply with all of their legal obligations and responsibilities
  • They comply with the domestic building legislation
  • They obtain required insurance for protection works against an adjoining property
  • The permit is for a single story dwelling on a single property and only once in any three year period.

When owner builders engage contractors they are responsible for managing the site and ensuring that all mandatory inspections are carried out. The owner builder also needs to fulfil the following contractual requirements:

  • Engage a registered builder for all work over $10,000 (unless it is only one of the exempt single trades)
  • Enter into a major domestic building contract for all building work over $10,000
  • Ensure the registered building practitioner has warranty insurance for all work when it’s over $10,000
  • If the owner builder sells the property within six and a half years of the date of occupancy or the certificate of final inspection then they need to obtain a technical owner builder inspection report that identifies defects. They must also provide the purchaser with requisite statutory warranty insurance. It is an offence to sell a building without the required report and insurance.

Master Builders does not encourage owner buildership as a rule because this practice puts the responsibility for managing a building site on someone who is not necessarily equipped for the role. It is always better to engage a qualified and licensed builder to manage a site. They are compelled to obtain the appropriate permits, insurances and tradespeople coordination to get the job done safely and properly.

For builders

Master Builders provides a wide range of products and services to members. We cater for building and construction businesses and tradespeople across all facets of the industry. From apprentices and tradespeople working on renovations and new homes, up to large commercial construction companies, we have everything you need to succeed. Across Victoria we have a team of dedicated staff and experts in occupational health and safety, industrial relations, building and construction law, training, government relations and more, all committed to helping you. Within this website you’ll find information and tools to help meet your business needs, and details on who to contact for more.

 In this section, we aim to answer some of the more common questions you may ask. If, however, your questions aren’t answered here, please contact us on (03) 9411 4555.

Builders FAQs

Do I need to be registered?

If you have a direct contract with the owner to do domestic building work valued at more than $10,000, then you should be registered in the appropriate category.

Generally, unregistered builders cannot carry out any domestic building work direct for an owner. There are very limited exemptions to this rule.

We can help you understand the registration process and whether you need to get registered. Click here or call us on (03) 9411 4555 for more information.

What contracts should I use?

In most cases you will need a standard building contract. This contract must be in writing and include details such as:

  • The contract price
  • Deposits and progress payments required by law
  • A description of the building work
  • Plans and specifications
  • Advice on the five day cooling off period

Your building contract should comply with the Domestic Building Contracts Act 1995 and be fair and reasonable to both you as the builder and to the consumer.

Master Builders have the following contracts available to make it easier for you:

  • New Homes Contract (HC-6)
  • Home Improvements Contract (HIC-5)
  • Domestic Cost Plus Contract (CP-1)
  • Minor Works Contract (MW-1)

 

You may agree to include special conditions. We strongly recommend however that you do not add to, subtract from or alter any standard contract without prior legal advice. For more information on contracts, call us on (03) 9411 4555.

Do I need insurance?

For work costing more than $16,000, you must take out Domestic Building Insurance (DBI) for the owner. This protects the consumer from defective or incomplete work for up to six years if you die, disappears or becomes insolvent.

There are also a range of insurances that you can take out to for your business, personal protection and more. Master Builders Insurance Services can help you with all of your insurance advice and requirements with competitive pricing and a strong understanding of the industry.

For more information, visit Master Builders Insurance Services or call us on (03) 9411 4555.

Do I need planning and/or building permits?

 Depending on the size and nature of the project, you may need a planning and building permit. Master Builders building services department can help. Our team of building surveyors, inspectors and support staff are well placed to help you no matter where you are in Victoria.

We have metropolitan and regional offices (Albury-Wodonga, Ballarat, Bendigo, Geelong, Shepparton and Warrnambool). For more information, contact us on (03) 9411 4555 for metropolitan Melbourne or click here for the contact details of the regional office nearest you.

What happens if the owner wants to access the site during construction?

If necessary, the owner has a right to ‘reasonable access’ to the site on ‘reasonable terms’. This should always be under your supervision and control. They are not allowed to interfere with your work.

Is the owner permitted to deny me site access while I am undertaking work stipulated in the contract?

The owner is required to provide you with free and uninterrupted access to the site so that you can fulfil all works necessary under contract. If you are denied access, or are asked to leave the site, then there are contractual implications and you can, and should, obtain urgent legal advice. Members should contact our legal department on (03) 9411 4555.

What is defective building work?

Defective building work is defined by the domestic building legislation as:

  • A breach of any of the builder’s implied warranties or
  • A failure to maintain the standard or quality of work specified in the contract

If an alleged defect falls within one of the above categories and is notified to the builder within 10 years of the date of Certificate of Occupancy or Certificate of Final Inspection the builder will be responsible for rectifying the defect and any consequential damage.

If you fail to fulfil your obligations, the owner may be able to bring an action in the Victorian Civil and Administrative Tribunal (VCAT) or other appropriate jurisdiction.

How do I best handle client complaints?

We always recommend open communication with your clients to minimise issues. The owner should contact you and raise the concerns so that you can discuss them. If, however, you are unable to reach a resolution then you should follow the dispute settling procedures in your contract.

The owner may seek independent legal advice and contact bodies including Consumer Affairs Victoria or the Victorian Building Authority. 

Master Builders has a range of legal expert available to members who can dispute resolution with you. Call us on (03) 9411 4555 for help.

I’d like to hire an apprentice, where do I start?

Hiring apprentices is a great way to invest in not only the future of the building industry but also in the future of your business. Time spent training and mentoring an apprentice is an excellent investment, enabling your business to grow. Master Builders can help link you with the right apprentice through our ‘Find an Apprentice’ service. Just complete the form with all the details about what you’d like your apprentice to do and send it back to us via email or post.

I need information about wages, where do I go?

Our industrial relations department has developed wage rate bulletins outlining the current minimum rates of pay and allowances. The Award rates of pay contained in the wage rate bulletin reflect the minimum rates of pay applicable to a classification under that award.

The Construction Forestry Mining and Energy Union (CFMEU) Building and Construction Industry Enterprise Agreement (EBA) rates are only applicable to those companies who have chosen to be bound by the industry EBA.

You can see the wage bulletins here but if you are unsure call us on (03) 9411 4555 for more information.

I need occupational health and safety advice, can you help?

If you are a member, our occupational health and safety team can help with all aspects of site and staff safety. Our team of OHS experts provide advice, OHS site visits and have a range of online tools and information to help you to keep your site safe. Call us on (03) 9411 4555 for more information.

Where do I go to find out about training for me and my staff?

Master Builders was named 2016 Small Training Provider of the Year. As a registered training organisation (RTO) we have a wide range of standardised training options for members and non-members. We can also tailor training to suit your business needs. Training is available at locations across Melbourne and Victoria, including at our state-of-the-art Building Leadership Simulation Centre in South Melbourne.

Among our offerings are training in building registration pathways, sustainability, business management and more.

We have a team of training specialists who can offer advice and guidance on training options to suit you. Online training is also available. Visit our training website or contact us on (03) 9411 4555 for more information.