Signing a building contract may be one of the most important contracts you ever sign in your life and even the most qualified contract readers can miss details that could sting them down the track.
We have come up with a comprehensive checklist that will ensure that you have dotted your I’s and crossed your T’s.
- Check the Tradesman / Builders licence and number and details on the contract are the same as the one you have been shown.
- Check that the licence covers the work to be undertaken.
- Check that the contract clearly states the contract price.
- Check that the contract clearly states the works to be undertaken.
- Check that the deposit amount is not more than 10% of the total contract value.
- Are you aware of how the contract price may vary? If not, speak to the builder and ask.
- Does the contract show details of progress payments?
- Have you received a copy of the Home Building Consumer Guide?
- Have you received a copy of the Home Building Compensation Fund Certificate? This is required for works over $20K
We know and understand the value of due diligence and have seen many clients being stung by contracts because they haven’t read the fine print. Always engage in a reputable and knowledgeable contract lawyer who can help you understand the process if you are unsure.