7 common things that are overlooked in home building contracts
Most people about to sign a building contract do the same thing.
They skim through looking for red flags. They Google "what should be in a building contract" and then scan their 50 page document looking for those items. Site costs? Check. Permits? Check. Payment schedule? Check.
They think if all the boxes are ticked, they're protected.
But here's what I've learned after reviewing hundreds of building contracts: the danger isn't what's missing from your contract. It's what's already in there that you don't understand.
The false assumption
You want a build that stays on budget and on schedule.
You think the way to get that is by making sure your contract includes all the "essential items" like site prep costs, utility connections, and permits.
But that's not what actually protects you from cost blowouts and delays.
What really determines whether your build goes smoothly isn't whether those items are mentioned in your contract. It's how those clauses are written, what conditions are attached to them, and what rights your builder has that you don't even know about.
Here's what actually happens
I worked with Sarah last year. She was building in regional Victoria and had done everything "right". Her contract mentioned site preparation costs. It mentioned utility connections. It had a payment schedule.
But three months into her build, she got hit with an extra $18,000 in site costs.
When we dug into her contract together, we found the problem. Her contract did include site preparation, but it was based on "reasonable soil conditions". The clause gave her builder the right to charge extra for anything outside those conditions, and the builder got to decide what "reasonable" meant.
The site prep line item was there. She'd checked that box. But she had no idea what protection it actually gave her.
This is the pattern I see over and over. People think they're safe because the contract mentions permits, quality specifications, and payment schedules. But they don't realise their payment schedule allows the builder to claim payment before certain work is inspected. Or that their quality specifications say "or equivalent", giving the builder power to substitute materials. Or that their permits clause makes them responsible for any council delays.
What changes when you understand this
The building contract isn't just a checklist of items that should be included.
It's the rulebook for your entire build. Every clause either protects you or exposes you. Every sentence either gives you power or takes it away.
When you understand how your specific contract actually works, here's what becomes possible:
You can spot the clauses that let costs creep up and negotiate them before you sign
You know exactly when you can push back on extra charges and when you can't
You understand which delays you're responsible for and which ones are on the builder
You can see the difference between a payment schedule that protects you and one that puts you at risk
A quality build really does come from a quality contract. But a quality contract isn't about having all the right topics mentioned. It's about having clauses that actually work in your favour.
What to do next
If you're about to sign a building contract and you want to actually understand what you're agreeing to, not just check boxes on a list, I can help.
I offer Building Contract Health Checks where we go through your specific contract together. Not a generic checklist, but your actual document with your actual builder.
We look at how your payment schedule is structured, what triggers extra costs, how delays are handled, and where you have leverage you didn't know about.
I work with HIA and Master Builders contracts across all Australian states, Victoria, ACT, Queensland, New South Wales, Tasmania, WA, and the Northern Territory.
My contract reviews are for people who want to sign with actual confidence, not just hope for the best.
The goal is simple: you walk away knowing exactly what your contract says, what it means for your build, and what to watch out for so you can avoid the cost blowouts and delays that catch most people by surprise.
You can learn more about Building Contract Health Checks here.
Annelyse
Happy building! 💚
Thanks for reading and catch you on my next post :)
Annelyse
