What is a Home Building Contract?

Known as a Construction Contract Agreement, it is a written document agreed by both the homeowner and contractor. If you need help in constructing a contract, book your first free consult now.

A home building contract (also known as a Construction Contract Agreement) is a written document where the terms and conditions, the rights of either party, the amount to be paid, and the commencement and completion dates are carefully outlined. This is agreed upon by both of the homeowner and the contractor.

Minimum requirements of a home building contract as per the Home Building Act 1989:

The contract must contain:

The names of the parties, including the name of the holder of the contractor licence shown on the contractor licence.
The number of the contractor licence
A sufficient description of the work to which the contract relates
Any plans and specifications for the work
The contract price if known
Any statutory warranties applicable to the work
In the case of a contract to do residential building work – a conspicuous statement setting out the cooling-off period that applies to the contract because of section 7BA
In the case of a contract to do residential building work (other than a construction contract to which the Building and Construction Industry Security of Payment Act 1999 applies) – details of any progress payments payable under the contract
In the case of a contract to do residential building work – a statement that the contract may be terminated in the circumstances provided by the general law and that this does not prevent the parties agreeing to additional circumstances in which the contract may be terminated
Any other matter prescribed by the regulations for inclusion in the contract.

The contract must also be accompanied by the:

Other requirements for contracts to do residential building work:

Home construction contracts are usually in the form of a:

I. Lump Sum Contract

II. Cost Plus Contract

III. Milestone

A fixed price is set for the Lump Sum contract, while an amount is reimbursed by the owner under the Cost Plus contract.

As for Milestone, a payment must be issued for every work completed.

A successful building project is a result of a well-thought-out building contract. Whether it is a home for others or just simply a home for you and your family, you would definitely want to make sure that the place is everything you imagined would be. As thrilling as it may sound, building is one of the things that must be taken seriously. You must get yourself into some serious planning and consultation and make sure that you have your visions laid out well.

What is Contracts Specialist?

Contracts Specialist is a building and construction law firm that can give you legal advice concerning building and construction matters. CS is headed by John Dela Cruz, a Sydney-based lawyer specializing in building and construction for 10 years. He is also the founder and CEO of Small Builders, an Australian building software.

How Contracts Specialist can assist you with building contracts

Contracts Specialist have extensive experience in drafting and reviewing a wide range of contracts of our clients – both contractors and homeowners – such as Home Building, Commercial, Lump Sum, and Cost Plus contracts, as well as Subcontract Agreements.

CS Process:

1. We will review and interpret construction contracts for you.

2. We can draft contracts, amendments, and special conditions.

3. We can make sure your legal rights are enforced.

Consult with Contract Specialists so you have peace of mind and can ensure that you can avoid legal issues in the future.

Get Expert Construction Contract Review and Advice

Expert contract review and advice is just a step away. Connect with us to explore how we can assist with your construction law needs.

call now: 02 8096 8576

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Contracts Specialist is a Sydney-based construction law firm that deals with Building Disputes, Construction Contracts, Debt Recovery, and Security of Payment. With Contracts Specialist, you are ensured that you are in good hands.