Question: Our council of owners paid a deposit and received a detailed scope of works for roof maintenance, but still has no signed contract months later. Is that a problem?
Our council of owners has agreed to a quote for maintenance work on our strata’s roofs. We’ve received a fairly detailed scope of works, but it has no dates. We’ve paid a deposit. We asked for a contract, and although it was promised, we still don’t have one. The contractor emailed us a work schedule, which has been partially, but not fully, followed. We contacted the contractor to find out why, and he said more materials than expected were needed. He’s not given any projected date for recommencing works.
Should we be concerned that we have no written contract? Is accepting a quote and scope of works equivalent to a contract?
Answer: A quote and scope of works can form a contract, but without a proper written contract you have little leverage to enforce dates or milestones.
Without knowing the value and extent of the work, it is difficult to understand the risk exposure. For low-value work under $7,500, a contract is not required. However, the Home Building Contracts Act 1991 (the Act) requires a contract for work over $7,500 that is fixed-price work. At a minimum, you need something in writing acknowledging a quotation with a fixed cost and terms, and acceptance of those terms. If no contract exists, any other written evidence will help, but it is not ideal for pursuing action in the event of a dispute or performance issues.
Some critical points
- A scope of work/quote should clearly define the work included in the fixed cost and any terms or conditions.
- Proof of licencing for the work performed and proof of insurances should be requested/provided.
- Include timeframes in the contract, or at least in writing, including start and finish times.
- If work is over $20,000 in value, home indemnity insurance is required.
- A maximum deposit of 6.5% of the total contract value (or price of works if no contract) should only be paid after the signing of a contract and before work commences.
Refer to the attached fact sheet: Home Building Contracts Act outlining some of the provisions that apply to residential work including Class 2 strata. Where there is no contract with penalties for late completion of milestone dates, owners effectively have no leverage to enforce adherence to any dates promised or suggested.
Therefore, unfortunately, owners will need to continue to negotiate with the builder on a return-to-work date and ultimately lodge a complaint with the regulator if delays are experienced beyond expectations and if no reasonable outcome is achieved.
This post appears in the October 2026 edition of The WA Strata Magazine.
Bruce McKenzie
Sedgwick
E: bruce.mckenzie@au.sedgwick.com
P: 1300 735 720
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