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Duration: 2.09
When you hire a builder, make sure you have a contract.
Your home is one of your biggest investments.
A written contract protects you legally and clearly outlines what you're paying for. The contract should be agreed and signed before any work begins.
This video covers what a building contract should include and what other protection measures you can ask for.
Let's start with your contract. It's always a good idea to have one - but if your building work is going to cost $30,000 or more, it’s not just a good idea it’s required by law.
Most builders use a standard contract. Our website has helpful advice about what to look for in these and if you’re unsure, get a lawyer to check it before you sign it.
A good contract should clearly cover:
- What you're going to get, including the materials used, quality standards and start and finish dates.
- The cost, including what you need to pay, when you need to pay, and what happens if unexpected costs crop up.
- The contract should also lay out what you need to do as the homeowner and what your builder needs to do.
For work costing $30,000 or more, or if you ask for it, your builder must also give you a disclosure statement. This includes information about their:
- skills
- qualifications
- licence and
- the insurance or guarantees they provide.
And finally, you should also get a standard checklist. This outlines the stages of the build and how you can protect yourself at each of these stages.
Bottom line, your home is a major investment. Protect it and yourself with the right paperwork.
So, to build it right:
- always get a written contract
- ask for a disclosure statement and standard checklist, and
- get legal advice before signing.
