The day you sign your building contract is one of the most important days of the whole project, and yet it is often treated as a quick signature at the end of a long meeting. Please don't rush this one.
The contract is the document that decides what you will get, how much you will pay, when you will pay it, and what happens if something goes wrong. A good builder will sit with you for an hour or two and walk through every section. A builder who tries to get you signed up in twenty minutes is not acting in your best interests, even if the contract is on a standard HIA or MBA form.
Some things to satisfy yourself on before you sign:
The names, contact details and licence of the builder are correct, and your details are correct.
The price quoted matches the most recent sales estimate you agreed on.
The plans and inclusions schedule are attached to the contract — not just referenced.
The progress payment schedule is clear, and you can see what is paid at each stage.
The target completion date is in the contract, along with how delays are handled.
The cooling-off period and the variations process are spelled out.
The phrase "fixed price contract" is one to take with a pinch of salt. A contract is only really fixed if it contains no prime cost items and no provisional sums. Most contracts do contain both, because not every fitting has been chosen yet and not every site cost can be known in advance. That doesn't mean the builder is being slippery — it just means the final figure can move. The fewer of those allowances you have, and the more accurate they are, the closer the final invoice will land to the contract figure.
One last thing. If your builder has told you something is included but you can't find it in the contract, get it written in. Verbal promises don't survive when memories fade.
A custom new home deserves a contract you actually understand. If you'd like to see one explained the way it should be contact us today.
