After reviewing thousands of domestic building contracts, our lawyers have identified the clauses that cause the most problems for Australian homeowners. Understanding these risks is the first step toward protecting yourself.
Variation Clauses That Blow Out Your Budget
Most HIA and MBA contracts include variation clauses that allow builders to charge extra for changes. The problem? These clauses are often broadly drafted. Builders can claim variations for site conditions, design clarifications, or work they argue wasn't included in the original scope. Without proper limits, your fixed price contract becomes anything but fixed.
Our review identifies vague variation clauses and recommends specific amendments. We look for missing caps on variation costs and unclear processes for approving changes.
Payment Schedules That Favour the Builder
Progress payment schedules determine when you pay and how much. Standard contracts often front-load payments, meaning you pay a large percentage before significant work is completed. If your builder becomes insolvent or abandons the project, you may have paid far more than the value of work done.
We analyse your payment schedule against industry standards and the actual construction stages. Our report highlights where the schedule creates unnecessary risk.
Defect Liability Periods and Warranty Gaps
Your renovation contract should clearly define the builder's obligations to fix defects after completion. Many homeowners discover too late that their defect liability period is shorter than they expected, or that certain issues aren't covered at all.
Construction law in Australia provides some statutory protections, but your contract terms matter significantly. We check that your defect provisions meet minimum requirements and identify any gaps in coverage.
Termination Rights That Trap You
What happens if things go wrong and you need to end the contract? Standard building contracts typically give builders more termination rights than homeowners. Some contracts allow builders to terminate for minor payment delays while requiring homeowners to prove substantial breach.
Our building contract review examines termination clauses closely. We explain your rights and the builder's rights in plain language, so you know where you stand if the relationship breaks down.
Time and Delay Provisions
Delays are common in construction. Your contract should clearly state the expected completion date and what happens if the builder runs late. Many contracts include generous extension of time provisions that let builders claim extra time for weather, supply issues, or other factors beyond their control.
We review these provisions to ensure they're balanced. Builders deserve reasonable protections, but not unlimited ability to extend your project timeline without consequence.
