Victorian HIA New Homes Contract - 5 Things to check before signing (a checklist)

Most people think the hard part of building a new home is choosing the right builder and design. But the truth is, the contract you sign determines whether you'll have a smooth build or a nightmare.

Here's what usually happens:

You get handed a HIA New Homes Contract. It looks official, professional, standard. Your builder says "everyone uses this one." So you skim through it, sign it, and feel relieved that you can finally get started.

Then six months into the build, you get hit with a $15,000 variation you didn't see coming. Or the completion date slides by three months with no compensation. Or the tiles you specifically chose get swapped out for something "equivalent" without your approval.

And when you go back to the contract to see what you can do about it, you realise the builder was covered for all of it.

The false assumption most homeowners make

You assumed that an industry standard contract protects both parties fairly. That if everyone uses it, it must be balanced.

But here's what's actually true: standard doesn't mean safe. The risk isn't in the template itself, it's in the details that get left vague, the clauses that favor the builder, and the protections that never got added.

I learned this working with Sarah, who came to me after her builder kept pushing back her completion date. She'd signed a standard HIA contract and thought she was covered. But when I reviewed it with her, we found there was no liquidated damages clause specifying daily compensation for delays. The builder had all the power to extend timelines without consequence.

We couldn't rewrite the contract at that point, but I helped Sarah understand what leverage she did have and how to communicate effectively to get things moving. She finally moved in, but it cost her three extra months of rental payments she'll never get back.

What your contract should actually do

A quality build comes from a quality contract. Not because the contract builds the house, but because it sets up the systems that prevent the common disasters.

Your building contract has surprising ways to avoid extra costs and delays, but only if you know where to look and what to add before you sign.

Most homeowners don't know that:

• A vague start date clause means your builder can delay commencement indefinitely while you're paying holding costs

• Missing liquidated damages means you have no recourse when completion runs late

• Loose definitions around "equivalent" products mean your carefully chosen finishes can be swapped without your consent

• Special conditions can override the general conditions in ways that strip your protections

• Without clear defect procedures, "completion" can happen while your home still has unfixed issues

Understanding the contract is a superpower. It's the difference between feeling helpless when things go wrong and knowing exactly what to do.

What to actually check in your HIA contract

Before you sign, make sure these six things are locked down:

1. Specify a start date
   Make it crystal clear what needs to be provided before works will start. Vague language here costs you time and money while you wait.

2. Include liquidated damages
   There should be a daily rate for liquidated damages in your contract. This is a genuine pre-estimate of costs if the build runs late, and it's your only real leverage for keeping things on schedule.

3. Understand the special conditions
   Make sure you understand how any builder proposed special conditions impact the general conditions, and what takes priority if there's an overlap. This is where builders often hide clauses that benefit them.

4. Specify every detail that matters to you
   Your contract should specify the exact types of finishes, color codes, models of appliances, and specific fittings and fixtures. Also make sure there aren't clauses allowing the builder to make alternative selections without your approval first.

5. Lock in defect management
   Check there's a clear defect management procedure and that the definition of completion includes fixing known defects first. Otherwise you might reach "completion" with a punch list you can't enforce.

6. Clarify authority approvals
   Make sure the party responsible for obtaining authority approvals (building permits, planning permits, utility connections) is clearly defined. Delays here can stall your entire build.

Know exactly what you're signing before you build

The clients who come to me after they've signed always say the same thing: "I wish I'd known this before."

You can't predict every issue that will come up during your build. But you can make sure your contract gives you the tools to handle them when they do.

That's what a Building Contract Health Check does:

• Spot the clauses that leave you exposed to budget blowouts

• Add the protections that keep quality control in your hands from the start

• Give you the knowledge and confidence to communicate effectively with your builder

• Save your future self a massive amount of stress, time, and money

You're about to sign a document that controls hundreds of thousands of dollars and months of your life. It's worth making sure it actually protects you.

Get a Building Contract Health Check

Thanks for reading and catch you on my next post :)

Annelyse

Construction Management | M. Construction Law