Your first residential job needs four things done right before the work starts: a clear written quote, the right contract once you cross the value threshold, proof of insurance, and a deposit within the legal cap. Here is the first-job checklist — and where to go deep on each.
Quote vs contract — and when the contract is mandatory
A quote is your offer; a contract is what is agreed once the owner accepts. The key thing: a detailed, signed written quote can itself be the contract if it meets your state's mandatory-content rules. A solid residential quote covers parties and site, scope (with inclusions and exclusions), price and how it can change (fixed, cost-plus, prime-cost or provisional sums, GST identified), timeframes, payment terms, and the consumer terms your state prescribes.
Above a dollar threshold, a prescribed-content written contract becomes mandatory — broadly over $20,000 in NSW, over $10,000 in VIC, and at the QBCC regulated levels in QLD (other states set their own). The full state-by-state detail — required clauses, checklists and notices — is in Residential Contracts & the ACL and Residential Contract Requirements by State.
Cooling-off
Most states give the owner a short cooling-off period — commonly 5 business days after they receive a signed copy and the required consumer guide — during which they can withdraw, with only limited deductions allowed. Your contract has to include the cooling-off notice, and in some states the clock does not start until you have attached the prescribed information. Do not order materials or start work assuming the job is locked until that window is understood.
Proof of insurance — the Certificate of Currency
Builders and many owners will want proof of your public liability cover before you start. A Certificate of Currency is the one-page insurer document that proves it (insurer, policy number, dates, sum insured). On limits: residential tradies commonly carry $5M or $10M, and $10M is now the de facto minimum many builders expect — bigger or commercial work often wants $10M–$20M. The habit to build: buy at least $10M PL, get the PDF certificate, and attach it to your first quote email as standard. (More on cover and limits: Public Liability Insurance.)
Deposits — stay within the cap
Taking too big a deposit is an offence in several states. The general pattern for owner-occupier residential work:
- Smaller contracts (under ~$20,000): up to ~10%.
- Larger contracts (~$20,000+): around 5%.
- QLD is explicit: 10% under $20,000, 5% at or above $20,000 (with a carve-out for substantial off-site work).
Higher deposits are only justified for genuine heavy off-site fabrication (custom cabinetry, windows) and must be clearly documented. The detail and the disputes that follow are in Scope Creep & Deposit Disputes and the Deposit & Home Warranty by State card.
The first-job checklist
- Use a compliant quote template (scope, inclusions/exclusions, price method, timeline, deposit and progress stages, signature lines, plus state disclosures where required).
- Know when a full contract is mandatory for your state and value.
- Respect the cooling-off window and how notice is given.
- Always attach your Certificate of Currency (at least $10M PL).
- Keep the deposit within the cap (default 5–10% by value).
Common mistakes
- Starting work on a handshake above the contract threshold.
- Taking a deposit over the state cap.
- Not attaching a Certificate of Currency (and being knocked back at the gate).
- Treating the quote as locked before cooling-off is understood.
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Keep reading
Need help pricing your work? Read Section 14: Pricing Your Work - day rates, job prices and how to stop underselling yourself.
Finished your apprenticeship? Read our guide: After Your Apprenticeship - the stuff nobody teaches you in college.
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