By the time you are signing, price has usually been agreed. What matters now is what the price covers, what happens when something changes, and who is responsible for what.
Take the contract away and read it. Consider having a solicitor review it, particularly on larger projects.
Scope and inclusions
- What exactly is included, and can I see it as a line item list?
- What is specifically excluded?
- Which items are allowances rather than fixed prices, and what happens if actual costs differ?
- Are demolition, waste removal, scaffolding, site protection and final clean included?
- Is engineering included, and who pays for approvals and certification?
- Are the drawings and specification attached to and named in the contract?
Price and payments
- Is this a fixed price contract, or are there cost escalation provisions?
- What is the deposit, and is it within the legal limit for this contract type?
- What are the progress payment stages, and are they tied to completed work rather than dates?
- How and when are variations invoiced?
- What is the final payment amount and when is it due?
Program
- What is the start date and the expected duration?
- What events entitle you to an extension of time?
- How will delays be communicated?
- Are there liquidated damages, and how are they calculated?
- What are the long lead items and when do they need to be ordered?
Variations
- Will every variation be priced and approved in writing before work proceeds?
- What margin applies to variations?
- What happens if a variation reduces scope? Do I receive a credit?
- Who can authorise a variation on your side and on mine?
Insurance and licensing
- Can I see your current licence, and does it cover work of this value and type?
- Is the licensed entity the same entity named in this contract?
- Can I see your public liability and workers compensation policies?
- Will home building compensation cover be provided where required, and when?
Verify the licence yourself through the NSW licence check service rather than relying on a number written on a quote.
People and site management
- Who runs this site day to day, and how often will they be here?
- How many other projects will you be running at the same time?
- Which trades are your own employees and which are subcontracted?
- What are the site hours, and how will noise and access be managed?
- Who is my single point of contact?
Quality and completion
- What standard applies to the finished work?
- How is practical completion defined?
- What is the defects liability period, and how are defects reported and rectified?
- What warranties and manuals will I receive at handover?
- Will you provide the compliance certificates, including waterproofing and electrical?
Warning signs
| Sign | Why it matters |
|---|---|
| Pressure to sign quickly | Good builders have a program, not a countdown |
| Deposit well above the legal limit | A red flag on both compliance and cash flow |
| Refusal to provide a written scope | You cannot enforce what is not written |
| No variation process | Every change becomes a dispute |
| Vague answers on licensing or insurance | Easy to verify, so vagueness is a choice |
| Verbal promises not reflected in the contract | Only the contract counts |
Related reading
- How to choose a reliable tradie or builder in Sydney
- How to choose a builder for a home extension in Sydney
- Common home renovation mistakes
Questions about the contract itself
- Which standard contract is this based on, and what has been amended?
- What is the contract price and what is specifically excluded?
- How are provisional and allowance items priced and adjusted?
- What is the payment schedule, and what triggers each payment?
- What is the contract program, and what extensions of time are allowed?
- How are variations priced, approved and documented?
- What is the defects liability period and how are defects reported?
- What insurances are in place, and can I see the certificates?
- Who is the certifier, and who appoints them?
- What happens if either party wants to end the contract?
Questions about how the site will run
- Who is my day to day contact, and how often will we meet?
- How many other projects will you be running during mine?
- Which trades are employed and which are subcontracted?
- What are the working hours, and how is the site secured and kept tidy?
- Where will materials be stored and where will waste go?
- Who is responsible for protecting neighbouring property?
Before you sign
Take the contract away and read it somewhere other than the builder's table. If the value is significant, have it reviewed. Ask for anything you were told verbally to be written into the scope, particularly inclusions and exclusions that were discussed on site.
A builder who is comfortable with all of these questions is telling you something useful about how the project will be run. So is a builder who is not.
ORT Constructions provides written scopes with the exclusions stated plainly and prices variations before work proceeds. See our building services or contact us to talk through a project.
Frequently asked questions
- Should a solicitor review a building contract?
- On any substantial project it is sensible. A short review is inexpensive relative to the contract value and often clarifies payment, delay and variation provisions.
- How much deposit is a builder allowed to ask for?
- NSW sets limits on deposits for residential building contracts. Confirm the current limit for your contract type and be cautious of any request well beyond it.
- What should be attached to the contract?
- The drawings, the specification, the scope of works, the progress payment schedule and any allowances or selections schedule. If it is not attached and named, it is not part of the agreement.
