What To Compare Before Signing With a Builder
Signing a building contract is one of the largest financial commitments most people make. Here's a comprehensive guide to exactly what you should compare, confirm, and check before putting pen to paper.
Before You Sign — The Essential Questions
Before signing a building contract, compare: full inclusions specifications, site cost estimates (fixed vs provisional), contract terms (sunset clause, cooling-off period, variations), and builder warranties. Always compare at least 3 builders side-by-side — never on price alone.
Key Takeaways
- Never sign on your first visit to a display home — always compare at least 3 builders
- Inclusions comparison matters more than price comparison
- Always get site costs in writing — verbal estimates have no legal weight
- Understand the sunset clause, cooling-off period, and variation process before signing
- Seek independent legal advice for any building contract over $100,000
Why This Decision Deserves Real Due Diligence
Building a new home typically involves a contract worth $300,000–$800,000 or more. Yet many buyers spend more time researching a car purchase than they do comparing builders before signing.
The good news: knowing exactly what to compare makes the process much more manageable. This guide gives you a comprehensive checklist — covering inclusions, pricing, contract terms, and process — so you can compare builders with confidence.
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The Full Pre-Signing Checklist
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A printable checklist covering everything to confirm before signing with any builder.
The 7 Most Common Pre-Signing Mistakes
- Comparing base prices instead of inclusions — two similar prices can represent vastly different value
- Trusting the display home spec as standard — almost everything in a display home is an upgraded or premium option
- Not getting site costs in writing before signing — verbal estimates have no legal weight
- Signing before comparing multiple builders — always get at least 3 full inclusions proposals
- Not reading the contract in full — key terms like sunset clauses and variations can cost you dearly
- Ignoring the cooling-off period — you typically have 5 business days in Queensland to exit without significant penalty
- Skipping independent legal review — a building contract solicitor can identify risks you'd otherwise miss
Understanding Key Contract Terms
Building contracts contain specific legal terms that every buyer should understand before signing:
Sunset Clause
Sets the maximum time the builder has to complete your home. If exceeded, you may have exit rights. 12–18 months is typical for standard builds.
Provisional Sum (PS)
An estimated amount for work whose full scope isn't defined at signing. If actual costs exceed the PS, you pay the difference. Always ask what each PS covers.
Prime Cost (PC) Allowance
A budget for items you'll select yourself (e.g. tiles at $60/m²). If you choose items that cost more, you pay the difference — a common source of budget blowouts.
Cooling-Off Period
The window after signing when you can exit the contract. In Queensland, this is typically 5 business days. After this, cancellation may cost you the deposit and more.
Variations
Changes made to the contract scope after signing. Every variation should be documented and priced in writing before being approved. Verbal variation agreements create disputes.
For more on contract terms, read our guides on fixed price vs cost plus contracts, provisional sums explained, and what causes building variations.
Beyond The Base Price
Why the 'from price' rarely tells the full story of what you'll pay.
Related Checklists & Guides
Frequently Asked Questions
All information is independently compiled by the Compare My Build editorial team as a general guide only. This is not legal advice. Always seek independent legal and financial advice before signing a building contract.
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