12 Things to Check Before Signing a Building Contract

Before signing, check the builder's licence and insurance, the full price and inclusions, the payment schedule, the timeline, how variations work and what warranties apply. Get everything agreed in writing, and have the contract reviewed by a solicitor or an independent adviser.

The 12 things to check

1. Licence and insurance. Confirm the builder is licensed and holds the required insurance.
2. Price and inclusions. A full inclusions and exclusions list attached to the contract.
3. Plans and specifications. Final, signed and matching what you were shown.
4. Site costs. Clearly stated or clearly excluded.
5. Payment schedule. Stage based, with no payments ahead of progress.
6. Dates. Start and completion dates, with a clear process for delays.
7. Variations. How they are priced, quoted and approved in writing.
8. Provisional sums and prime cost items. How much, what for and how they are adjusted.
9. Warranties and defects. What is covered, for how long and how to claim.
10. Dispute resolution and termination. What happens if things go wrong.
11. Approvals. Who is responsible for them and when they are due.
12. Cooling off rights. What applies in your situation.

Red flags

• Pressure to sign quickly
• A large deposit
• Vague or missing inclusions
• No licence or insurance details
• Verbal promises that are not in the contract

Take your time

Pick a builder who explains each clause in plain language and welcomes an independent review of the contract.

This article is general information, not legal advice. Have your contract reviewed before signing.

Frequently asked questions