Most homeowners signing a residential building contract for the first time read it once, ask the builder a few questions, and sign. The contract is typically 60–100+ pages of dense legalese. Critical clauses that affect what the homeowner pays, when, and under what conditions are buried in plain sight. Disputes over what those clauses actually mean account for thousands of NCAT, VCAT, QCAT and equivalent claims every year — many of which the homeowner could have avoided entirely with a 15-minute review before signing.
The clauses that matter most
- Variation cost mechanism. Most contracts let the builder charge a margin on top of trade variations — typically 20%. A $50,000 variation becomes $60,000 once that margin runs.
- Provisional sums. Items the builder hasn’t priced precisely (kitchens, tiling allowances, paving). Provisional sums often run 30–50% over budget. A $300,000 contract with $80,000 in provisional sums can easily land at $340,000–$370,000.
- Prime cost items. Similar to provisional sums — items where you’re committing to a brand or quality but the actual cost is to be confirmed. Same overrun risk.
- Liquidated damages clause. If the builder is late, what daily/weekly amount do they owe you? Some contracts cap this absurdly low ($50/week on a $500k build).
- Practical completion definition. When can the builder claim the build is “done” and demand the final payment? Vague definitions favour the builder.
- Defects liability period. How long after handover can you require the builder to come back? The state minimum (usually 13 weeks for non-structural) versus what the contract says — sometimes shorter.
- Insurance requirements. Has the builder taken out the home warranty insurance required by your state? The certificate should be attached. If not, it’s a red flag.
- Termination rights. What happens if the build stalls? Most contracts make builder-side termination easy, homeowner-side termination difficult.
- Dispute resolution clause. Mandatory mediation, expert determination, arbitration, or straight to tribunal? Each has different cost and time implications.
What a Claim Done contract review delivers
Our Contract Reviewer is purpose-built for Australian business and consumer contracts. Upload your building contract; within 15 minutes you receive a plain-English A4 PDF report covering:
- Watch points — every clause flagged that could cost you money or leave you exposed
- Fair terms — clauses that are within market norms (so you know what you don’t need to negotiate)
- Good points — protections in your favour you should be aware of
- Specific dollar exposure where it can be calculated (variation margins, provisional sum overruns, liquidated damages caps)
- Suggested negotiation points — clauses worth pushing back on before signing
Flat $79. Available 24/7. The report is yours to read, share with the builder, take to a lawyer for specialist review of specific clauses, or use as a negotiation checklist.
For a full legal review
The Claim Done report is a plain-English first read — not a substitute for a qualified Australian construction lawyer if the contract is complex, the build is over $1M, or you’re committing to long-term arrangements (off-the-plan apartment with staged settlement, custom build with major structural innovations). For those cases, take the report to a lawyer for a specialist review. The report cuts their initial-review time in half, which usually saves you 60–80% on the legal fee.