Five Essential Tips Before Signing a Building Contract

1. Verify the Builder’s Credentials and Insurance 🛡️

You must ensure the person or company your client is contracting with is legally compliant and financially sound “More”.

• License Check: Confirm the builder holds a current and appropriate Builder’s License (e.g., with your local state/territory licensing authority).
• Domestic Building Insurance (DBI): Insist on receiving a Certificate of Currency for the mandatory insurance. This protects the homeowner if the builder dies, disappears, or becomes insolvent before or during the warranty period. No work should start and no contract should be signed without this.
• Public Liability Insurance: Ensure the builder has adequate public liability coverage for any incidents on the worksite.

2. Scrutinise the Contract Scope and Specifications 📝

The contract must clearly define exactly what the builder is agreeing to build and use. Vague language is the biggest source of disputes.

• Inclusions vs. Exclusions: Ensure the contract has a detailed list of all items included (fittings, fixtures, appliances, specific materials, etc.). If something isn’t explicitly listed, the builder isn’t required to provide it.
• “Prime Cost” (PC) and “Provisional Sum” (PS) Items: These are areas where the cost isn’t fixed yet. Challenge the builder to provide the most realistic estimates possible for these items. Ensure the contract clearly states the process and markup (builder’s fee) applied when the final item cost exceeds the provisional allowance.
• Plans Match Price: Confirm that the signed plans and detailed specifications attached to the contract are the final, approved version that the price is based on.

3. Analyse Payment Schedules and Progress Claims 💸

The law often dictates how and when payments can be made to protect the homeowner’s cash flow and prevent the builder from over-claiming.

• Statutory Limits: Check that the deposit amount and the number of progress payments comply with local statutory limits (e.g., deposits are often capped at $X% of the contract value).
• Milestone Alignment: Ensure each progress claim is tied to the physical completion of clearly defined stages of work, not just a period of time. You should verify that the work is completed and meets the quality standard before certifying the claim for your client.
• Retention Amounts: Review any clauses related to retaining a small percentage of the final payment until all defects are fixed—this is a powerful incentive for the builder to finish strong.

4. Examine Timeframes, Delays, and Penalties (Liquidated Damages) ⏱️

Time is money in construction, especially if the homeowner is paying rent elsewhere.

• Completion Date: The contract must specify a start date and a realistic estimated completion date.
• Extension of Time (EOT): Understand the grounds upon which the builder can claim an extension (e.g., severe weather, owner-requested changes) and the formal process for approving them.
• Liquidated Damages: Ensure the contract includes a liquidated damages clause. This specifies a predetermined, daily penalty amount that the builder must pay the homeowner for every day the project runs past the agreed-upon completion date (unless a valid extension has been approved).

5. Understand Variations and Dispute Resolution 🤝

The contract needs a clear roadmap for handling changes and disagreements.

• Variations (Changes): All changes to the scope or materials should be documented through a formal written variation that clearly states the change in scope, the resulting change in price, and the effect on the completion date. No verbal variations should ever be accepted.
• Warranty: Ensure the contract acknowledges the mandatory statutory warranty periods for structural defects and non-structural defects.
• Dispute Process: Review the required steps for resolving a dispute (e.g., mandatory referral to a local building commission, mediation, or arbitration) before either party can proceed to litigation.

The Guardian for Your Dream Home: Why You MUST Hire a Private Inspector

Building a new house is exciting! It’s likely the biggest thing you’ll ever pay for. You have a builder, and they are busy making your dream come true.

But here is a simple truth: You need someone on your team whose ONLY job is to check the quality of the work.

That someone is an Independent Private Building Inspector.

🏡 What is a Private Inspector?

Think of your private inspector as a highly skilled detective and quality controller rolled into one.

• They are experts in building rules (called ‘codes’ or ‘standards’).
• They are not hired by your builder. They are hired by you.
• Their reports are unbiased and completely focused on protecting your investment.

🛑 But Wait, Doesn’t the Council (or Surveyor) Check the Work?

Yes, they do. But here’s the problem:

1. They only check the basics: The mandatory inspections (like the ones required by law) only check that the house meets the minimum safety requirements. They don’t check for great workmanship or hidden mistakes.
2. They don’t inspect every detail: They only visit at a few key moments. Lots of important work happens in between their visits.

Your private inspector goes deeper and looks closer than anyone else.

💰 Three Simple Reasons Why It’s Worth Every Cent

1. Stop Hidden Mistakes Before They Cost a Fortune

Imagine a water pipe is installed poorly in the wall. You won’t see a leak until months or years after you move in. By then, fixing it means smashing tiles, breaking plaster, and paying thousands of dollars.

• The Private Inspector’s Superpower: They check the work before it gets covered up (like before the plaster goes on or the concrete is poured).
• The Result: A mistake found and fixed early costs the builder a few minutes. A mistake found later costs you a fortune.

2. Get the Quality You Paid For

Your contract promises a high-quality home. Sometimes, builders try to cut corners to save time or money. This can mean using cheaper methods or rushing a job.

• The Private Inspector’s Goal: To hold the builder to the standard you signed up for. They make sure the walls are straight, the waterproofing is perfect, and the finishes are neat.
• The Result: You get the well-built home you deserve, not a rushed job that will cause problems later.

3. Peace of Mind

Building a home is stressful enough. Having an expert regularly visiting the site, checking everything, and sending you a report means you don’t have to worry about what’s going on when you’re not there.

• The Private Inspector’s Role: They are your professional eyes and ears on the construction site.
• The Result: You can relax, knowing an expert is watching your biggest investment, and any problems are being documented and fixed right away.

✅ The 4 Key Checkpoints

A good inspection package covers these critical moments, usually before a payment is due:

1. The Base: Checking the foundation steel and pipes before the concrete slab is poured.
2. The Frame: Checking the main wood or steel structure before walls go up.
3. The Lock-Up: Checking the wiring, plumbing, and crucial waterproofing before plaster and tiles cover them forever.
4. The Handover: The final check of every single detail—paint, tiles, cabinets, doors—before you make your final payment and get the keys.

Don’t wait until you have a problem. Hire your Private Building Inspector from the start. It is the best way to safeguard your dream and your money