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7 min read

What to check before you sign a building contract

The clauses that decide how your build actually goes: timeframe, allowances, variations, extensions of time and dispute steps.

Get the whole contract, not just the price page

Most residential builds in Australia run on a standard form published by the industry associations in your state, with a additions and special conditions attachment. The standard form is not the whole story — the attachment is where your deal actually lives.

Ask for the complete package: contract, inclusions schedule, exclusions, allowances, provisional sums, plans and specifications, and the insurance documents.

The clauses that matter most

  • Timeframe: the agreed completion date, and how it is measured from the start date.
  • Extensions of time: what the builder can claim, how much notice they must give, and whether they can claim it retrospectively.
  • Liquidated damages: what the builder pays you if they finish late, and whether that amount is realistic for your situation.
  • Variations: who can request one, how it is priced, and whether work can proceed before you sign it.
  • Allowances and provisional sums: what is included, what is excluded, and what you pay when you upgrade.
  • Termination: what each side can end the contract for, and what it costs.
  • Warranties: the contractual warranty period, plus whatever statutory warranty and compensation cover your state requires.

Cooling-off and independent advice

Most states give a cooling-off period after you sign a residential building contract. Use it.

Have a solicitor or conveyancer who reads building contracts read yours, and have your own trade checks (plumber, electrician, structurer) look at the inclusions before you commit. The fee is small next to the number on the front of the contract.

Write down what was promised

Anything said in a display village or on a site visit means nothing unless it is in the contract or an attached schedule. If a salesperson tells you the site costs will be minimal, ask for it in writing.

Keep every email, quote revision and specification version. When a dispute starts, the person with the paper trail usually wins it.

Put this into practice

Save your home brief once and send it to approved builders who fit, or ask for a recommendation based on your block, budget and build type.