Why your building contract matters more than you think: the clauses you need to check
Written By Annelyse Stead | Australian Home Building & Renovation Contract Specialist | M. Construction Law | B.Construction ManagementYou've spent months planning your dream home. You've pored over floor plans, chosen paint colours, and imagined yourself cooking in that beautiful kitchen.
But here's the thing most people don't realise until it's too late: the quality of your building contract will determine whether your dream build becomes a reality or a nightmare.
Most homeowners think all building contracts are basically the same. They're not. And the three clauses I'm about to share with you are need to be checked for good reason—they're your safety net when things don't go to plan.
1. A clear start date
Here's what happens without a clear start date: you're rental lease is ending, and your builder still hasn't broken ground. You're paying for temporary accommodation and storage, watching your budget evaporate.
Your contract must include either a specific start date or a clear method for determining when construction begins. In most cases, this is calculated as a set number of days after all necessary permits and paperwork are secured.
Who's responsible for what?
This is where many homeowners trip up. Your contract should clearly state:
Which documents you need to provide
Which documents the builder is responsible for
The timeline for each party's obligations
Pro tip: If you're responsible for any documents, gather them before you sign the contract. If your builder is responsible, ask for fortnightly progress updates in writing. One of my clients, Sarah, did this and discovered her builder hadn't even applied for permits three weeks after signing. She was able to address the issue immediately rather than finding out months later.
2. Allowances for delays
Every building project faces delays. Weather, public holidays, supply chain issues - these are facts of construction life.
The question isn't whether delays will happen. It's whether you'll know how they affect your timeline.
Your contract must specify how many days are allocated for each type of delay:
Bad weather days
Public holidays
Weekends (if applicable)
Potential supply delays
Without these provisions clearly stated, you have no way to hold your builder accountable for genuine delays versus avoidable ones.
Track your delay days
I recommend my clients keep a simple spreadsheet tracking delays as they occur. When my client James did this, he discovered his builder had used all allocated weather delay days by month three of a six-month build. This gave him leverage to negotiate an extension without additional costs when further delays occurred.
Pro tip: Take photos of the site on rainy days or when work isn't happening. This creates a record you can reference if there's ever a dispute about how delay days were used.
3. A clear finish date or completion timeline
This is the big one. When will you actually be able to move into your new home?
Your contract should include either a specific completion date or a defined timeline (number of working days) from the start date. Without this, you have no recourse if your build drags on indefinitely.
I've seen builders stretch what should be a 6-month build into 18 months simply because the contract had vague language like "completed in a reasonable timeframe." That's not legally sufficient, and it leaves you powerless.
Get it in writing
As soon as construction begins, ask your builder to confirm the projected completion date in writing via email. This creates accountability and gives you a benchmark to measure progress against.
My client Emma did this and discovered her builder's projected timeline was two months longer than what she'd understood from verbal conversations. She was able to adjust her plans accordingly rather than facing a crisis when her rental lease ended.
What happens if these clauses are missing or vague?
Without clear dates and timelines:
You can't prove the builder is behind schedule
You have no grounds to request compensation for delays
You can't plan your own life with any certainty
You're vulnerable to endless extensions and excuses
One couple I worked with had a contract that said construction would be "completed within a reasonable timeframe." When their build stretched from 8 months to 16 months, they had no recourse. They'd already moved out of their previous home and spent $35,000 on rental accommodation they'd never budgeted for.
Your pre-signing checklist
Before you sign your building contract, verify it includes:
A specific start date or clear method for determining it
Detailed allowances for delays broken down by category
A defined finish date or completion timeline in working days
These three clauses are required in Australian states for good reason. They're the foundation of a fair, transparent building relationship.
If your builder pushes back on including these details, that's a red flag. A professional builder who stands behind their work will have no problem committing to clear timelines.
The confidence that comes from a solid contract
When you have these three essential clauses properly documented, something shifts. Instead of feeling anxious and powerless, you can focus on the exciting parts of building your home.
You'll know when work should start, how delays will be handled, and when you'll be moving in. You can plan your life accordingly. You can hold your builder accountable if things go off track.
That's the difference between a stressful build and one you can actually enjoy.
Ready to nail your new home build?
Building contract support that uncomplicates navigating a new home build.
I've reviewed hundreds of building contracts and helped homeowners avoid mistakes that would have cost them tens of thousands of dollars and months of delays.
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 catch you in the next post 😊
Annelyse
Construction Management | M. Construction Law
