Next up in the Quote to Completion series, we will explore your building contract. We’ve prepared ourselves for contacting a builder, found and chosen a builder, been through the quoting process and finally accepted your quote, now it’s time to move through to your building contract being drawn up. Here are some of the essentials you need to know before you sign your contract.
Your Building Contract – From Quote To Completion
Building Contract Good Practice
A good and professional practice for your builder is to send through a draft of your contract and allow you plenty of time to understand your contract prior to signing. You should not only expect this, but demand it if not given.
Your builder should also be very approachable in allowing any questions you might have. This stage of the building process should not be rushed.
Type Of Contract
There are several types of contracts for the various styles of projects that can be undertaken for example; New home contract, small works contract, alterations and additions contract, kitchen, laundry and bathroom contract, cost plus contract, new home peace of mind fix price contract.
Depending on who issues the contract, they may have different names. New homes, renovation/extensions, and small works are the most popular. Your builder will make this decision for you and they are bound to chose the right contract for your project.
Legally Binding Document
This may be a bit obvious to state, but it is important to note that this legally binding document is in place to protect both you as the client and the builder. Before signing anything, thoroughly read through the entire document and ensure that you understand all of the contract. Don’t be afraid to ask questions or seek legal advice if necessary.
Pay special attention to the terms and conditions in the contract. Here you will find the relevant clauses for any issues that may arise and clauses for inclement weather, progress payments and variations to name a few. Raise any issues you may have with these terms and conditions before you sign.
The building schedule forms a very important part of your building contract. The document takes precedence over all previous documents and needs to be given careful attention. The building schedule adds finer details to the scope of works, so look here for your PC and PS allowances, as well as any other details you have specified.
Building contracts are not complicated documents and should be easy to read and understand. I cannot stress enough how important it is for you to thorough understand this document and ask as many questions as you need. If you would like a more thorough understanding of your contract and what to expect, follow this link to register your interest in my Inside The Build Masterclass series which is launching soon.
Are you building or renovating? Ready to sign a contract?