Builders’ Contracts – What To Look For

Builders’ contracts are an important part to get right for your project!

Your design is complete, you are excited and ready to go. And now it’s time to enter the world of builders’ quotes and contracts. How do you know who to select? How can you be sure that you are comparing apples with apples when comparing quotes from builders?

Following these 14 tips will help simplify the process and give you peace of mind with your decision.

Specify Scope Of Work

Ensure your designer creates a detailed scope of works for you. This should include window and door schedules as well as all finishes. For eg if you are using an engineered stone in the kitchen you need to specify whether it is from the standard range or the deluxe. Most builders will quote from the standard range unless told otherwise. This can affect the price by several thousands of dollars.

Provide Details

The more detail that is provided the more likely you are to receive a realistic price that will not blow the budget down the track. Even using different paint colours in rooms affects the price. Also check as to how many coats of paint are being used and even the brand. The more detail you give the builder regarding finishes and quality of items the more realistic the quote will be.

Advise On Supplied Building Items

Advise your builder as to whether you are supplying items such as tiles, tapware etc. or any trades that will be required to work with them.

Check Options To Builder’s Range

If builder is providing PC items, handles etc they will typically say from Builder’s Range. This often means the most basic and you need to see the options before agreeing to this as you may find yourself up for a variation in contract which could lead to the budget blowing out.

Check List For Builder’s Quote

Create a check list to cross reference each builder’s quote. I have attached a recent example below. By making a simple table and colour coding it you can easily check if all builders have quoted on the same thing. If they haven’t you clarify if their quote includes the missing items, if not get them added.

Is GST Included?
Check to see if the quote includes GST as some builder’s quote + GST and this makes an enormous difference to the final price.  

Builder’s Licence
You can check the builder’s licence here with the Office of Fair Trading NSW.  

Ask For Builder’s References
Ask for references and contact details of people they have worked with and actually ring them.  

Builder’s Insurance
Obtain a copy of their home insurance warranty.  

Read The Builder’s Contract
Read the contract carefully to establish what is included or not included in the price such as the removal of rubbish.  

Project Schedule
Ask for a time schedule, remembering this is only a guideline as inclement weather can create havoc as can out of stock etc. which is beyond the builder’s control.  

Design Priorities
Determine what is absolutely non-negotiable in the design and what a throwaway is. By doing this you will not feel as though you are compromising anything and can make a decision without agonizing about it.  

Running Cost
Ask for a running cost from the builder once the work begins and stay on top of the costs.  

Contingency
Always allow at least a 10 -20% contingency as there is always something unexpected that crops up especially with a renovation.