14 things to check in your building contract
Written By Annelyse Stead | Australian Home Building & Renovation Contract Specialist | M. Construction Law | B.Construction ManagementAre you really protected by your building contract?
Most people sign their building contract without fully understanding what they're agreeing to. They trust their builder, assume everything will go smoothly, and hope for the best.
But here's the reality: your building contract isn't just paperwork—it's the only thing standing between you and costly surprises, blown timelines, and disputes that can derail your entire build.
The good news? There's a better way. By knowing exactly what to look for before you sign, you can protect yourself, stay in control, and ensure your dream home doesn't turn into a nightmare.
Why your building contract matters more than you think
Your contract is made up of three main parts:
General Conditions – the core terms and obligations that govern how your build will proceed
Plans and Specifications – the detailed drawings and materials list that define what you're actually getting
Special Conditions – the personalised terms specific to your build
Understanding the General Conditions is critical. This is where the rules of engagement are set—how delays are handled, who's responsible for what, and what happens when things go wrong.
The more you understand your contract, the more power you have to get the outcomes you want.
The 14 contract checkpoints that protect your build
Before you sign, make sure you've covered these essential points:
1. Specify a start date
Lock in when work will begin. Without a clear start date, you're left guessing when your build will actually kick off—and that uncertainty can throw off your entire timeline.
A specific start date creates accountability and sets clear expectations from day one.
2. Specify a completion date
Agree on a realistic timeline for when the project will be finished. This isn't just about knowing when you can move in—it's about having a benchmark to measure progress against.
If your builder can't commit to a completion date, that's a red flag.
3. Review the construction programme
Clarify what work calendar the project is based on. Does it account for public holidays? Weather delays? Material lead times?
A construction programme that doesn't factor in realistic delays is setting you up for disappointment.
4. Change requests
Understand the process for requesting design changes and how it impacts cost and time. Most contracts allow for variations, but the terms can vary wildly.
Make sure you know how much notice you need to give, how changes are priced, and what happens if you change your mind.
5. Authority approvals
Confirm which permits still need approval—building permits, planning permits, engineering approvals—and who is responsible for getting them.
Delays in approvals can push back your entire build. Make sure you understand how these delays will be handled and whether they extend your completion date.
6. Resourcing plan
Ask who will be your main point of contact and who will be onsite managing the quality of work. You need to know who's accountable.
If your project manager is juggling multiple sites, how often will they actually be at yours? This matters more than you think.
7. Progress updates
Ensure the contract provides for regular progress reports—fortnightly updates detailing what's been done and what's coming next.
Without regular communication, you're left in the dark. And by the time you notice a problem, it's often too late to fix it cheaply.
8. Delay clauses
Read these carefully. Make sure you understand what qualifies as a delay and how you'll be notified if timelines slip.
Some contracts have overly broad delay clauses that let builders off the hook for almost anything. You need to know what you're agreeing to.
9. Continuity of work
Clarify how the builder will avoid long gaps between work phases. Continuity matters—long breaks can lead to weather damage, security issues, and extended timelines.
Ask how they manage scheduling to keep work moving steadily.
10. Materials procurement schedule
Ask for a list of when materials will be ordered and delivered. Flag any long lead times that could impact your schedule.
If your builder orders custom windows with a 12-week lead time halfway through the build, that's a delay you could have planned for.
11. Ground conditions
Ensure foundation testing has been done and the findings are reflected in the schedule. Unexpected ground conditions are one of the most common causes of budget blowouts.
If your site hasn't been properly tested, you're taking a gamble.
12. Liquidated damages
Calculate what reasonable compensation would be if the project runs late, based on your potential loss. This might include rent you're still paying or storage costs for your furniture.
Liquidated damages are your safety net. Make sure they're fair and enforceable.
13. Defects management
Ensure the contract defines what qualifies as a defect and outlines how they will be handled. Who inspects? Who decides what's defective? How quickly must repairs be made?
Without clear defects management, you're left arguing about what's "good enough."
14. Clarify ambiguities
Be sure every detail—from finishes to fixtures—is clearly specified to avoid misunderstandings. If something is vague, it's open to interpretation.
And when interpretations differ, you're the one who loses.
Why this 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, blown timelines, and disputes that drag on for months.
You don't have to be a lawyer to protect yourself. You just need to ask the right questions.
Take control of your contract
My Building Contract Health Check is designed to help you feel confident and in control of your build.
Everyday I help Aussie home builders navigate their contracts, avoid costly mistakes, and stand up for their rights when things go wrong. Whether you're about to sign or already halfway through your build, I can help you understand exactly where you stand.
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
Ready to nail your new home build?
Building contract support that uncomplicates navigating a new home build.
Nail down the details of your building contract.
In just minutes, a Building Contract Health Check will provide the clarity you need to simplify your new home build. I dive deep into the details of your building contract and find solutions for issues before they happen.
Whether you need to prevent issues or solve something that's already happened, I'll get to the bottom of exactly how to solve it with your building contract.
Thanks for reading, and I'll see you in my next post!
Annelyse
Construction Management | M. Construction Law
Follow me @_buildtogether for daily tips on building and renovation contracts.
