14 things to check in your Building Contract
Building your dream home is exciting, but it can also be overwhelming—especially when it comes to understanding your building contract. Most home buyers don’t dig deep enough into the details before signing, and that’s where things can go wrong.
Your contract is more than just paperwork; it’s the foundation for how your entire build will unfold. To feel confident and secure, it's important to not only review the terms but truly understand what you're agreeing to.
Here, I’ll walk you through 14 essential things to check in your contract before you sign on the dotted line. This advice is focused on helping you protect your interests, avoid costly surprises, and take control of your build.
Your Building Contract
Your contract is made up of three main parts:
General Conditions (the core terms and obligations),
Plans and Specifications (the detailed drawings and materials list), and
Special Conditions (the personalized terms for your build).
Understanding the General Conditions is key to grasping how the rest of the contract fits together. The more you know, the more empowered you’ll be to get the outcomes you want.
14 Things to Negotiate in Your Building Contract
Before you sign, check these points to make sure you're setting yourself up for a smooth build:
Specify a Start Date – Lock in when work will begin to set clear expectations.
Specify a Completion Date – Agree on a realistic timeline for when the project will be finished.
Review the Construction Program – Clarify what work calendar the project is based on and if it accounts for holidays or potential delays.
Change Requests – Understand the process for requesting design changes and how it impacts cost and time.
Authority Approvals – Confirm which permits (like building or planning permits) still need approval, who is responsible for getting them, and how delays might affect your timeline.
Resourcing Plan – Ask who will be the main point of contact and who will be onsite managing the quality of work.
Progress Updates – Ensure the contract provides for regular progress reports, such as fortnightly updates detailing upcoming work.
Delay Clauses – Read these carefully. Make sure you understand what qualifies as a delay and how you'll be notified if timelines slip.
Continuity of Work – Clarify how the builder will avoid long gaps between work phases.
Materials Procurement Schedule – Ask for a list of when materials will be ordered and delivered, and flag any long lead times.
Ground Conditions – Ensure foundation testing has been done and the findings are reflected in the schedule.
Liquidated Damages – Calculate what reasonable compensation would be if the project runs late, based on your potential loss.
Defects Management – Ensure the contract defines what qualifies as a defect and outlines how they will be handled.
Clarify Ambiguities – Be sure every detail, from finishes to fixtures, is clearly specified to avoid misunderstandings.
Why It Matters
The more you understand your contract, the smoother your build will be. When you know what to expect, you can avoid surprises like hidden costs or delays that could throw your project off track.
The good news is, you don’t have to figure this out alone. My Building Contract Health Check is designed to help you feel confident and in control of your build. In just 60 minutes, we’ll review your contract together and ensure you’re not missing any crucial details. This way, you can sign with peace of mind, knowing you’ve covered all your bases.
Ready to take control of your contract? Book your Building Contract Health Check today and let’s get you set up for success!
Thanks for reading, and I’ll catch you in the next post! 😊
Annelyse
Masters. Construction Law | B. Construction Management
PS. For more tips and advice on building, follow me on Instagram @buildwithannelyse.
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Written by Annelyse, Building Contract Enthusiast, Project Manager, and founder of Build Together Project Management.
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