A Guide to Home Building and Renovation Contracts

Putting a contract (or agreement) in place for any home repair, renovation, or home build job is common practise. This is to protect you and the trade business when working together.

You obviously want to ensure you get the job done to an expected quality level within a certain time frame. The trade business or builder wants to ensure they get paid for their time, labour, costs, and effort.

The contract should form a key part of the discussion with any builder or trade you are planning to use.

We list below some of the things you want to ensure are covered in the contract.

1. Contract essentials

The written contract should contain the builder/trade business name, business address, contact number, and license number.

If materials and appliances are part of the quote, make sure they are all listed including their model numbers and brand names.

This may not just apply to builders but even to contracted work with painters, cabinet makers, plumbers, or electricians.

And very importantly, ensure the contract includes a detailed list of the scope of works, plus what is “excluded” from the scope of works to avoid confusion. For example, certain things that a builder may exclude could include rubbish removal.

2. Completion and payment schedule

Ask your builder to provide estimated dates for each stage of completion from start to finish. Ask also for any possible reasons for delays to help you anticipate problems and work around them.

Be careful about the payment schedule. The contract should state the payment terms, amount, and conditions for each stage. It is your responsibility to ensure it is delivered to the quality you expect before you release each payment.

Specify when the final payment will be done and under what conditions: a specified date or upon completion?

3. Other contract considerations

• Avoid any verbal agreements. Make sure everything is done in writing.
• Check your state department Fair Trading and Consumer Affairs website to see if a written contract of works is needed for the type and size of the job you are doing. These do vary by state.
• Read the entire contract before you sign anything. Ensure that you understand all the stated terms before proceeding with the project.

4. The value in using a reputable construction cost estimation service

Construction cost estimators like Newin Building Estimating Services remove much of the cost uncertainty associated with building or renovating.

Newin can help home builders and renovators more accurately estimate building costs to ensure their projects remain viable. Call today to find out more.

Other useful links:

• Construction estimator Sydney NSW
• Construction estimator The Hills District NSW
• Construction estimator Parramatta NSW
• Construction estimator Upper North Shore Sydney
• Construction estimator Lower North Shore Sydney
• Construction estimator Doncaster VIC
• Construction estimator Richmond VIC
• Construction estimator Campbelltown NSW
• Quantity Surveyors Eastern Suburbs Melbourne
• Quantity Surveyors Box Hill VIC
• Quantity Surveyors Campbelltown NSW