Are you considering buying land and engaging a builder to build your new home? Or have you already chosen a builder and they have provided you with a building contract to sign?

Before you do anything, it is very important to understand what you are signing and to make sure that anything discussed and agreed verbally with the builder, or their agent is contained in the written terms of the building contract before you sign.

Some important points to consider

We have reviewed build contracts for many clients prior to signing, as well as advising and acting for clients who are in dispute with their builder during the build and a build contract was already signed prior to our engagement.

Some of the points that you should consider prior to signing any building contract includes but is not limited to:

  • Does the contract state that it is subject to finance?
  • Does the contract need to be subject to anything else occurring, such as sale of other property?
  • Is it a fixed price or is the price subject to change?
  • If the price is subject to change, what sort of things might influence the end price you will be paying?
  • Also, how will you pay for the increased amount?
  • Is there a deposit payable and what are the progress payments involved?
  • Who owns the plans of the build if the contract is ended or terminated prior to completion of the build?
  • What will happen if I try to terminate the contract?
  • What will happen if the builder “goes under” (i.e. insolvent) before my build is completed?

Tailoring the building contract to your needs

The builder may have a template contract that they provide to you – however you want to ensure that any additional or special terms set out the circumstances and details of the build for which you are engaging them.

We are here to assist you at any stage of this process. If you require any assistance, or if you need any legal advice, feel free to contact our team.

The following information is general information only and is not and does not constitute legal advice. If you rely on the information herein, you do so at your own risk. For legal and tailored advice for your specific situation and circumstances, please contact us directly.