💰 Understanding Deposits in Construction: What’s Legal Under QBCC — and What’s Fair for Other Trades

At A-Master Construction, we believe that transparency builds trust. That’s why we’re sharing this practical guide to help both tradies and clients understand deposits — what’s legal, what’s standard industry practice, and what to look out for when engaging trade services in Queensland.

This article provides general information only and does not constitute legal advice. If you need tailored support, always seek clarification from a qualified legal professional or contact the Queensland Building and Construction Commission (QBCC) directly.

🛠️ What Is QBCC-Regulated Work?

The QBCC (Queensland Building and Construction Commission) regulates residential building work, which includes:

• Building or renovating homes and units

• Bathrooms, kitchens, decks, patios, sheds, garages

• Structural retaining walls or fencing

• New builds and extensions

If a job falls under this category, strict rules apply to how much deposit can legally be charged.

💵 Legal Deposit Limits Under QBCC

Jobs Under $20,000

✅ Maximum deposit: 10% of the contract value❌ This deposit must only apply to labour and materials supplied by the contractor

Jobs $20,000 or More

✅ Maximum deposit: 5% of the contract value❌ Deposits cannot include the value of any materials supplied by the client

If a client is providing materials like tapware, tiles, or appliances, these must be excluded from your deposit and payment schedule calculations.

🧾 When Clients Supply Materials

It’s common for homeowners to source their own materials to save money or choose their preferred finishings. However, this creates additional risks for both parties.

Contractors should:

• Clearly list client-supplied items in the contract

• Exclude them from deposit calculations

• Add clauses that outline responsibilities (e.g. delays, warranty exclusions)

Clients should:

• Ensure they know when their materials need to be on site

• Understand that contractors are not responsible for product faults or late deliveries

⚠️ Trades and Work Not Covered by QBCC

The following trades are not regulated by QBCC’s deposit rules, but are still bound by general consumer and contract law:

• Earthworks and excavation

• Landscaping (non-structural)

• Plumbing-only or electrical-only jobs

• Civil drainage or trenching

• Owner-builder projects

• Commercial and industrial construction

• Maintenance or repair work

• Labour-only contracts

  
  

In these cases, contractors and clients are free to negotiate reasonable deposit terms, but we recommend following industry standards and always putting everything in writing.

💡 What’s a Fair Deposit for Non-QBCC Work?

For unregulated trades or commercial works, the law doesn't set a limit — but these general guidelines are considered fair:

• Under $5,000 → 10–20%

• $5,000 to $20,000 → 10–15%

• Over $20,000 → 5–10%

• Custom or non-refundable materials → Up to 30–50% (with a clause to explain why)

  
  

Again, clarity is key. A detailed quote and contract prevent misunderstandings later.

👀 What Clients Should Look Out For

If you’re hiring a tradesperson or builder, here are some red flags and best practices to consider:

✅ Check the QBCC licence (for building work): www.qbcc.qld.gov.au

✅ Ask for a written quote and contract before paying any money

✅ Understand the deposit rules (is it QBCC-regulated or not?)

✅ Get a clear payment schedule with agreed milestones

✅ Know who is supplying what — and when

✅ Ask questions — a professional contractor won’t mind.

🚩 Be cautious if:

• You’re asked for more than 10% upfront (on regulated jobs under $20k)

• There’s no contract

• You’re asked to pay in full before work begins

• The contractor won’t put anything in writing

🔐 Summary

✔ If your work is regulated by QBCC, there are clear legal limits:

• 10% deposit for contracts under $20,000

• 5% deposit for contracts over $20,000

• Deposits apply only to contractor-supplied labour and materials

✔ For trades and jobs not covered by QBCC, fairness and clarity are key:

• Use a written contract

• Set realistic deposit terms

• Communicate responsibilities clearly

📢 Disclaimer:This blog post is provided by A-Master Construction as general information only. It is not legal advice. If you are unsure about your rights or obligations, please contact the QBCC or seek advice from a qualified legal professional.