Home Renovation Checklist: What to Sort Before Work Starts
Most renovation problems start before any work does. The decisions made in the weeks before ground breaks, on scope, contracts, insurance, and permits, determine whether a project runs to budget and schedule, or unravels. This checklist covers the obligations and decisions a homeowner needs to work through before a builder starts work, drawn from direct experience managing renovations on established Melbourne homes.
TL;DR
- Define the scope before requesting quotes, including structural work, what stays, and what changes.
- Set the budget, including contingency, and understand the legal cost thresholds.
- Check the builder's registration, insurance, experience, and relevant trade licences.
- Read the domestic building contract carefully, including deposits, variations, and cooling-off rights.
- Confirm domestic building insurance and your own home insurance before work starts.
- Check whether planning or building permits are required, and who is responsible for obtaining them.
- Keep written records of approvals, variations, and key communications throughout the project.
Step 1: Define the Scope Before Anything Else
Vague scope is the most common cause of budget blow-outs and contractor confusion. Before you contact a builder, before you request a quote, before you commission drawings, you need a clear picture of what you are asking for.
Scope means which rooms or areas are included, what is structural versus cosmetic, what is being retained, and what is being demolished or altered. A kitchen update that requires relocating plumbing is a different project from one that does not. An extension that touches a load-bearing wall carries different obligations from one that does not. These distinctions affect cost, timeline, and the legal requirements that apply.
Scope definition also determines whether a building permit is required and whether a domestic building contract must be used. Neither obligation is triggered by time or intent. They are triggered by the nature and cost of the work. Getting the scope written down before you approach contractors means quotes can be compared on equal terms. A quote that looks lower often reflects a narrower scope, not better value.
If the project involves any structural work, specific obligations apply regardless of cost. That distinction needs to be resolved at the scope stage.
Step 2: Set Your Budget and Understand the Cost Thresholds
Renovation budget planning involves more than a target spend. It requires understanding what costs are included, what contingency is appropriate, and which cost thresholds trigger legal obligations.
A contingency of 15 to 20 per cent is standard practice on full renovations, particularly on older homes where conditions behind walls and beneath floors are not always predictable. That figure is not padding. It is the practical allowance for what an experienced contractor expects to encounter.
The threshold most homeowners need to know is the figure under the Domestic Building Contracts Act 1995 (Vic) that triggers the requirement for a written major domestic building contract. Home improvement work valued at more than $10,000 in Victoria requires a written contract that meets specific legislative requirements. Confirm this figure against current legislation before entering any agreement, as thresholds can be updated. Consumer Affairs Victoria
The threshold applies to the total value of the work, including both labour and materials. It cannot be avoided by splitting a project into smaller contracts. A pre-construction contract and a main contract that together exceed the threshold are treated as a single engagement under the Act.
Knowing where your project sits against that threshold before you engage a contractor shapes every conversation that follows.
Step 3: Verify Contractor Credentials
Before you sign anything with a builder or tradesperson, verify their registration. In Victoria, registered building practitioner status is required for domestic building work above the cost threshold, and for any structural work regardless of cost. Registration is a legal requirement, not an optional credential, and it exists for the homeowner's protection.
The Victorian Building Authority maintains a public register. You can search by name or registration number and confirm that a practitioner's registration is current and covers the category of work they will be performing. A builder registered for domestic construction is not necessarily registered for commercial work. Check the category, not just the name.
Beyond registration, verification should cover current insurance, specifically professional indemnity and public liability, demonstrated experience with the relevant building type, and references from comparable projects. A builder experienced in new residential construction may not have worked extensively on heritage or established homes. That distinction matters on older properties.
Tradesperson registration requirements apply separately to specialist trades including electricians, plumbers, and gasfitters. Each must hold a current licence or registration with the relevant authority. Your builder should be able to confirm which trades they will engage and that those trades hold the required credentials.
Do not take credentials on trust. Check the register directly.
Step 4: Understand Your Contract Obligations
The domestic building contract is where most homeowners are most exposed. Reading it carefully before signing is not optional. It is the document that governs how variations are handled, how disputes are resolved, and what happens if either party does not perform.
What the contract must include
A written domestic building contract is required for work above the cost threshold. Under the Domestic Building Contracts Act 1995 (Vic), the contract must include the price or how it will be calculated, a description of the work, start and end dates, and a payment schedule. It must also include a process for variations, changes to the agreed scope or price, and that process must be in writing.
Cooling off period
After signing, the homeowner has a statutory cooling off period of five business days to withdraw without penalty. Having the contract reviewed by a solicitor or building consultant before signing waives that right, but independent advice on a major renovation generally outweighs the benefit of retaining it. For a substantial renovation, have a lawyer read the contract.
Pre-construction contracts
A pre-construction contract may be used where design or planning work is required before the main contract is issued. These are lawful, but the costs involved count toward the total contract value for the purposes of determining whether major domestic building contract requirements apply.
Deposits
Do not pay a large deposit before a formal contract is signed. The Act limits the deposit a builder can take before work starts. Paying beyond that limit before documentation is in place removes your primary leverage if problems arise.
If a dispute cannot be resolved directly, the pathway in Victoria runs through Domestic Building Dispute Resolution Victoria before proceeding to VCAT. The best protection, though, is a contract you have read and understood before you sign it.
Step 5: Insurance and Compliance
Two insurance obligations apply before work starts, and both sit primarily with the builder. The homeowner's responsibility is to confirm they have been met and to manage their own cover.
Certificate of domestic building insurance
For work above the cost threshold, the builder must provide a current certificate of domestic building insurance before taking any deposit and before starting work. This insurance protects the homeowner if the builder dies, becomes insolvent, or disappears before completing the work. It does not cover disputes about quality while the builder is still active. The certificate must be current and specific to your project. Check it before you hand over any money.
Home and contents insurance
Before renovation work begins, notify your home and contents insurer. Standard policies often exclude or limit coverage during construction. Some require you to advise the insurer of any building works as a condition of cover. Confirm whether your existing policy responds to the work being done, and whether additional construction cover is needed. Do not assume coverage continues unchanged.
Building surveyor
Where a building permit is required, a building surveyor must be appointed. Their role is independent. They issue the permit, conduct mandatory inspections at key stages, and issue the occupancy permit or certificate of final inspection at completion. They are not engaged by the builder to approve the builder's work. They are an independent check on compliance. Confirm early whether the project requires a permit and, if so, who will engage the building surveyor. This should be specified in the contract.
Step 6: Building Permits and Planning Permits
A building permit is required for most structural work, additions, and alterations to a home in Victoria. Common examples include adding a room, altering a load-bearing wall, changing the roofline, modifying drainage, or any work affecting fire safety. Significant internal alterations may also require one, depending on the nature of the work.
The building permit is generally applied for by the builder, but this must be confirmed in the contract. Starting work without a permit is a serious compliance failure. Work done without one can be required to be demolished or significantly altered, regardless of quality.
Planning permits and building permits are different things, administered under different legislation. A planning permit relates to how land can be used or developed. A building permit relates to the structural and safety standards of the work. Some properties require both. This is particularly relevant for established homes in heritage overlays or character precincts, where planning approval may need to be obtained before a building permit can even be issued.
Confirm early whether your property is subject to any heritage or character overlay. That check belongs at the scope stage, not after plans are drawn.
Step 7: The Pre-Construction Checklist
Work through these phases in order. Each phase has dependencies on the one before it.
Before You Start
The decisions made before a renovation starts set the terms for everything that follows. A clear scope, a contract you have read, the right insurance in place, permits lodged before work begins. These are not administrative details. They are the foundation the project runs on.
If you are planning a renovation and want to speak with a registered builder before you commit to anything, [contact MJD Projects](INTERNAL LINK: contact page).
Frequently Asked Questions
Do I need a building permit for an internal renovation?
It depends on the nature of the work. A building permit is generally required for structural alterations, work affecting load-bearing elements, changes to drainage, additions, or alterations that affect fire safety. Not all internal work triggers a permit requirement, but the boundary is not always obvious. Confirm with a building surveyor early in the planning process, before plans are finalised. Starting work that requires a permit without one carries significant consequences, including the possibility of required demolition.
What is a cooling off period in a building contract and how long is it?
Under the Domestic Building Contracts Act 1995 (Vic), a homeowner has a statutory cooling off period of five business days after signing a domestic building contract during which they can withdraw without penalty. The right is waived if the homeowner obtains independent legal or technical advice on the contract before signing. For a substantial renovation, having the contract properly reviewed generally outweighs the benefit of retaining the cooling off right.
Should I tell my home and contents insurer before renovation work starts?
Yes. Standard home and contents policies often exclude or limit coverage during construction. Some insurers require notification of building works as a condition of the policy. Contact your insurer before work starts, confirm how your current policy responds to the renovation, and establish whether additional construction cover is needed. Discovering a gap in cover after something goes wrong is a position worth avoiding.
What is the difference between a building permit and a planning permit?
A building permit is issued under the Building Act 1993 and relates to the structural and safety standards of the proposed work. A planning permit is issued under the Planning and Environment Act 1987 and relates to how land is used or developed. They are separate documents, administered by different bodies, and sometimes both are required. This is most common for properties in heritage overlays or character precincts, where planning approval may need to be obtained before a building permit can be issued. Confirm early whether your property is subject to any overlay. This is a scope-stage question.
What should a written domestic building contract include?
The contract must include the price or how it will be calculated, a description of the work, start and expected end dates, a payment schedule, and a written process for handling variations to the scope or price. It should also specify who is responsible for obtaining the building permit, how disputes will be managed, and the process for practical completion. Before signing, confirm that every commitment made verbally during the quoting process is reflected in the written document. If it is not in the contract, it is not agreed.
