QC2 contract (HIA Queensland Peace of Mind)
QC2 is HIA Queensland's Peace of Mind contract: no prime cost or provisional sum provisions, maximum cost certainty. Used when scope is fully resolved at signing.
Ask Chalkline about this →The QC2 is the Housing Industry Association (HIA) Queensland “Peace of Mind” contract for residential new-home construction. The QC2 differs from the more common QC1 by removing the prime cost item and provisional sum provisions, locking the contract price harder. There is no allowance mechanism for unselected items or uncertain costs; everything is fixed at signing. The QC2 is used where the client wants maximum cost certainty AND the scope is fully resolved at signing (all selections made, all site works costed, all variations agreed).
Distinguishing from QC1:
| Feature | QC1 (standard) | QC2 (Peace of Mind) |
|---|---|---|
| Prime cost items | Yes (allowances adjusted at selection) | NO |
| Provisional sums | Yes (allowances adjusted at work) | NO |
| Variations | Standard variation mechanism | Limited variation rights |
| Contract sum | Fixed price with PC/PS adjustments | Fully fixed at signing |
| Client suitability | Most residential clients | Clients prioritising cost certainty over flexibility |
| Builder suitability | Most volume builders | Builders confident in pricing and scope |
| Selection stage | After signing, with PC adjustments | Before signing, all decided |
When QC2 fits:
- Project home with fully spec’d inclusions: every fitting, fixture, finish locked at signing.
- Sophisticated client wanting cost certainty: prepared to do all selections upfront.
- Established design with no site unknowns: site survey complete, geotech done, no contamination risk.
- Builder confident in pricing: cost library current, supplier prices locked.
When QC2 doesn’t fit:
- Custom build with selections to come: PC items are needed to allow late selection.
- Site with unknowns: PS work is needed to allow site works adjustment.
- Client uncertain about finishes: lock-in pressure leads to dissatisfaction.
Why QC2 is less common than QC1:
The QC1’s PC and PS mechanisms are operationally useful for both builder and client. Most builders and clients accept the variation flexibility in exchange for not locking every selection at signing. QC2 is a niche product for specific buyer profiles.
QBCC Schedule 1B compliance:
The QC2 is QBCC Schedule 1B-compliant like the QC1 (5% deposit cap, 5-day cooling-off, written variations, 12-month defects period, etc.). The compliance scaffold is the same; the difference is the cost mechanism (no PC/PS).
Common builder issues with QC2:
- Hidden variations on QC2: builder needs to vary the contract for a site unknown but QC2’s limited variation rights make this harder. Cost absorbed.
- Client wants to change a selection: QC2 doesn’t easily accommodate; either builder absorbs the cost or formal variation negotiated.
- Insufficient pre-signing scoping: a QC2 signed before everything is locked leaves the builder exposed when reality intrudes.
- Selecting QC2 to avoid the PC mechanism work: removes flexibility but also removes the safety valve.
For builders:
- Reserve QC2 for fully-scoped builds: don’t use it as a default. The variation flexibility of QC1 is usually worth the PC/PS administration.
- Insist on all selections at signing if you use QC2. Don’t leave PC-style items unresolved.
- Cost the build conservatively under QC2; you don’t have a PS safety valve.
- Brief the client at signing on the limited variation rights so expectations match.
- Confirm site works are fully scoped (geotech, contamination, services) before QC2 lockup.
Also known as: HIA QC2, HIA Peace of Mind, QC2 Queensland fixed-no-PC.
Category: Contracts / Queensland / residential.
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Last updated: 2026-05-15. Verified: 2026-05-15.