9 things to check before signing your HIA Building Contract
Why most people get their building contract wrong (and how to fix it before you sign)
You've picked your builder. You love the design. The quote feels manageable.
Then the contract arrives.
It's thick. It's full of contractural language. And honestly? It looks like every other building contract you've seen online.
So you skim it. You figure it's a standard HIA or Master Builders template, so it must be fine.
And that's exactly where things go sideways.
Here's what most people believe about building contracts
Most homeowners think a building contract is just a formality. A box to tick before the real work begins.
They assume that because it's a standard template, it's fair. That "industry standard" means "safe." That if something goes wrong, common sense and goodwill will sort it out.
But here's the truth: a quality build comes from a quality contract.
The contract isn't just paperwork. It's the rulebook for your entire build. And if the rules aren't clear or aren't in your favor, you're setting yourself up for cost blowouts, delays, and disputes you never saw coming.
The false assumption that costs homeowners thousands
Here's the assumption I see all the time: If I hire a good builder, the contract doesn't really matter.
People think the relationship is what protects them. That a trustworthy builder means a smooth build.
And don't get me wrong, a good builder matters. But even the best builders work within the rules of the contract. And if those rules allow for vague timelines, open ended price increases, or unclear responsibilities, things will go wrong. Not because anyone's dishonest, but because the contract allows it.
I've worked with clients who loved their builder, only to discover halfway through the build that their contract had no liquidated damages, no clarity on delay reasons, and special conditions that overrode protections they thought they had.
One client came to me after they'd already signed. Their builder was great, but the contract allowed price variations for almost anything. By the time they finished, they'd spent $47,000 more than the original quote. All perfectly legal, all buried in clauses they didn't understand.
The relationship didn't protect them. The contract did the opposite.
What actually creates a smooth, on budget build
Here's what I've learned after reviewing hundreds of building contracts: the details are everything.
Not the template. Not the builder's reputation. The specific words in your specific contract.
Because "industry standard" doesn't mean "fair." It means standard for the industry, which often favors builders, not homeowners.
The contract has surprising ways to avoid extra costs and delays, but only if you know where to look. Things like:
How liquidated damages are calculated (or if they exist at all)
What counts as a valid reason for delay
Who's responsible if there's an ambiguity in the plans
How special conditions override general protections
Whether you have approval rights before substitutions are made
These aren't extra protections. They're the difference between a build that stays on track and one that spirals.
What to actually check before you sign
When I do a Building Contract Health Check, I'm not just reading the contract. I'm looking for the gaps, the vague language, the clauses that sound fine but create problems later.
Here are nine things I check every single time, because these are the areas where things most often go wrong:
1. Clear start date and what can delay it
Most contracts say works will start "a specified number of days after the owner provides X, Y, Z." But do you know what's on that list? How long each item takes? What happens if something's delayed on the builder's end? If this isn't crystal clear, your start date is a guess, not a commitment.
2. Liquidated damages that actually mean something
Liquidated damages are your safety net if the build runs late. They're a daily rate the builder pays you to cover costs like extended rent. But I see contracts all the time with liquidated damages set to $0. That means if your builder is six months late, you're covering your rental costs with no compensation.
3. Special conditions that don't override your protections
Special conditions sit at the top of the contract hierarchy. If they contradict the general conditions, the special conditions win. I've seen builders add special conditions that allow price increases or delays in ways the general terms don't. You need to understand how every special condition impacts the rest of the contract.
4. Order of precedence between documents
If there's a conflict between the plans, the specs, and the contract, which one wins? This needs to be spelled out. Otherwise, you're leaving it up to interpretation, which almost always favors the builder.
5. What happens if the builder finds an issue in the plans
If the builder discovers an ambiguity or mistake in the drawings, can they just make a call and move forward? Or do they need your written approval? This clause determines whether you stay in control of decisions or find out about changes after they've already happened.
6. Who's responsible for authority approvals
Building permits, planning permits, occupancy certificates, utility connections—who's getting them? If it's not clear, delays in approvals can stall your build, and you might end up paying for the holdup.
7. What counts as a valid reason for delay
Extension of time clauses list all the reasons a builder can push back your completion date. Some contracts have incredibly broad definitions. If "unforeseen circumstances" or "inclement weather" aren't clearly defined, your builder has a lot of wiggle room.
8. Whether ground conditions have been tested
Foundation issues are one of the biggest sources of variations. If soil testing hasn't been done before you sign, and the builder discovers poor ground conditions, you're looking at a big unexpected cost. Make sure testing is complete and the findings are baked into the contract price.
9. How many days a week the builder will actually be onsite
If your contract says the build will take 120 working days, but doesn't define what a working day is, you have no way to assess if delays are fair. Are they onsite five days a week? Six? If it's not specified, there's no accountability.
Why this matters more than you think
I know this sounds detailed. Maybe even a bit much.
But here's what I've seen happen when people skip this step:
They sign a contract thinking it's fine, only to discover six months in that they have no recourse for delays, no cap on price increases, and no clarity on who's responsible when things go wrong.
By that point, the build is underway. Changing the terms isn't an option. And they're stuck managing a process that's costing them more time, money, and stress than it ever should have.
On the other hand, the clients who get their contract right from the start? They have clarity. They know what to expect. And when issues come up (because they always do), they have a clear path to resolution.
Understanding the contract is a superpower. It's the difference between feeling like you're at the mercy of the build and feeling like you're in control of it.
What to do next
If you're about to sign a building contract, or if you've already signed and something feels off, you don't have to figure this out alone.
I've built my entire practice around helping homeowners just like you catch the issues before they become expensive problems.
In a Building Contract Health Check, I go through your contract line by line. I flag the clauses that put you at risk, explain what they actually mean, and show you exactly what to ask your builder to change.
It's not about being difficult or untrusting. It's about making sure the contract works for you, not just for them.
Because the truth is, most builders will happily adjust clauses if you ask. They just don't offer it upfront.
Know exactly what you're signing before you build.
A Building Contract Health Check gives you:
Clear visibility on where your contract allows for price increases
Confidence that your build timeline is protected
Peace of mind that there are no hidden costs waiting to surprise you
