10 things to remember when Building a New Home

6 Feb

Written By Build Together Project Management

You're about to sign a building contract for your dream home.

You've spent months perfecting the floor plan. You've looking over tile selections and paint colours. You've chosen the perfect kitchen island.

But here's what most people don't realise: none of that matters if your contract isn't protecting you.

I see it all the time. Someone comes to me after their build has gone sideways, costs have blown out by $50,000, or they're stuck in month five of unexpected delays. And they all say the same thing: "I thought the contract was just standard. I didn't think I could change anything."

That assumption costs people thousands of dollars and months of stress.

Most builders hand you a contract and call it industry standard. It sounds reassuring, right? If everyone uses it, it must be fair.

But here's what that really means: it's standard for the builder. It protects their interests. Not yours.

I worked with Sarah, a mum of three building in regional Victoria. She signed what her builder called a "completely standard contract." Six months into the build, she noticed the marble tiles in her kitchen weren't the ones she'd selected. When she raised it, the builder pointed to a clause buried in the special conditions that said he could substitute materials "of similar quality" without approval.

Sarah had no idea that clause was there. She assumed standard meant safe.

It cost her $8,000 to fix because the work was already done.

What you think protects your build vs what actually does

Most people think a good build comes from choosing the right builder and having a clear design. And yes, those things matter.

But what actually protects your build? Your contract.

The contract is where the rules get set. It determines who pays when costs go up. It decides what happens when timelines slip. It controls how disputes get resolved and who has the power when something goes wrong.

A quality build doesn't come from a quality builder alone. It comes from a quality contract that holds everyone accountable.

The details that make all the difference

Let me show you what I mean. Here are the clauses that actually determine whether your build stays on track and on budget:

The variation buffer
Your contract should clearly state how price increases are handled. Most people don't have 5-10% of their build budget set aside for variations. But when variations aren't capped or clearly defined in the contract, costs spiral fast. I've seen builds go $70,000 over budget because the contract allowed unlimited variations.
Authority connection responsibilities
Who's paying for electricity, water, and internet connections? It sounds boring until your builder tells you it's your responsibility and hands you a $15,000 bill you weren't expecting. This needs to be crystal clear before you sign.
Quality control checkpoints
Can you inspect the build regularly? What happens when you spot something that needs fixing? If your contract doesn't give you the right to regular inspections and a clear process for resolving quality issues, you're hoping for the best instead of protecting your investment.
Insurance certificates before deposit
If your builder doesn't have proper insurance and something goes wrong, you're the one left holding the risk. Always get certificates of insurance before you hand over a single dollar.
Finance approval conditions
Is your contract conditional on securing finance? If not, and your loan falls through, you could lose your deposit. This is a non-negotiable safety net.
Essential document timelines
Australian builds require certain documents before work can start. If these aren't clearly listed with realistic timeframes, your build start date becomes a moving target.
Budget tracking for provisional sums
Provisional sums and prime cost items are where hidden costs live. If your contract doesn't break these down clearly and give you a way to track them, you'll be blindsided by costs you thought were included.
Special conditions review
Special conditions are changes your builder makes to the standard contract, usually because something cost them money on a previous project. These can completely undermine the protections in the general conditions. I've seen special conditions that let builders delay indefinitely without penalty or charge for site meetings that should be included.
Extension of time clauses
Over half of all new home builds face delays. But if your contract doesn't include a clear process for managing extensions and a weekly rate the builder pays you back for delays, you have no leverage when timelines slip.
Communication protocols
When something goes wrong (and something always goes wrong), how do you raise it? What's the timeline for the builder to respond? Without this in writing, you're left hoping your builder is reasonable when problems arise.

Understanding your contract is a superpower. It's the difference between feeling helpless when your builder says "that's just how it works" and knowing exactly what your rights are.

When you know what's in your contract and what should be changed before you sign, you take control of your build before it even starts.

What to do next

Most people realise their contract is a problem after something goes wrong. But by then, it's too late to change it.

The time to check your contract is before you sign. Not after your first variation. Not when the builder misses a deadline. Not when you spot that crack in the marble floor.

I've helped hundreds of people building new homes in Australia avoid the budget blowouts, delays, and disputes that come from signing a contract they didn't fully understand.