Contract Selection
The building contract governs your entire relationship with the builder. Getting it right matters.
Protect yourself before you build
Most disputes between owners and builders come down to the contract. A well-chosen, properly executed contract protects both parties and makes the building process significantly smoother.
Lump Sum contracts
The builder agrees to deliver the project for a fixed price. Variations (changes to scope) are priced separately and need to be approved in writing.
Best for: Projects with complete documentation, where scope is well-defined and you want cost certainty.
Watch for: Builders who price low to win the job and recover margin through variations. Detailed documentation reduces this risk significantly.
Cost Plus contracts
The builder is paid actual costs plus an agreed percentage or fee. You pay for what it actually costs to build — no more, no less.
Best for: Complex projects, heritage work, or projects where scope may evolve during construction. Also useful when you want a builder engaged early before documentation is complete.
Watch for: Cost overruns if the builder isn't managing the budget proactively. Requires more involvement from owner and architect.
Standard contract forms
We recommend using one of the standard residential contract forms: the HIA contract or the Master Builders contract. These are well-tested, balanced documents familiar to builders, certifiers and lawyers. Avoid bespoke builder contracts — they are almost always weighted heavily in the builder's favour.
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