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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.

8 min read·Compare My Build — Independent Resource· Updated June 2025

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.

Watch Out

Never sign a building contract on your first visit to a display home. Take time to compare at least 3 builders, review all inclusions in writing, understand the full cost, and ideally seek independent legal review before committing.

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The Full Pre-Signing Checklist

Inclusions
Full inclusions specification provided in writing
Ceiling height confirmed (2400mm / 2550mm / 2700mm)
Air conditioning type confirmed (split system vs ducted)
Floor coverings confirmed throughout (carpet, tiles, or timber)
Stone benchtop specification confirmed (20mm vs 40mm vs laminate)
Facade level in base price vs display home level compared
Structural warranty length and terms confirmed
Energy efficiency rating (minimum stars) confirmed
Frame type confirmed (timber or steel)
Termite protection method confirmed (physical vs chemical)
Pricing & Site Costs
Site costs included or a written estimate provided
Confirmed whether site cost estimate is fixed or provisional
All exclusions listed in writing (driveway, fencing, landscaping)
Upgrade menu and pricing provided in writing
Council fees and building approval costs clarified
Connection fees (water, sewer, power) addressed
Soil test result obtained and used for site cost estimate
Contract Terms
Progress payment schedule reviewed and understood
Variation process and costs clearly understood
Sunset clause reviewed (maximum build time before exit rights)
Defects liability period confirmed
Deposit amount and refund conditions clarified
Cooling-off period length confirmed (typically 5 business days in QLD)
Builder's licence and insurance independently verified
Process & Communication
Estimated start date confirmed in writing
Estimated completion date confirmed
Pre-construction steps and timelines explained
Site supervisor contact details provided
Communication process during build confirmed
Pre-construction meeting scheduled

Tip

Print this checklist and bring it to every builder meeting. Ask each question directly and note the answers in writing. A builder's willingness to answer thoroughly — and in writing — is itself a strong signal of their professionalism.

Download the Pre-Contract Checklist

A printable checklist covering everything to confirm before signing with any builder.

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The 7 Most Common Pre-Signing Mistakes

  1. Comparing base prices instead of inclusions — two similar prices can represent vastly different value
  2. Trusting the display home spec as standard — almost everything in a display home is an upgraded or premium option
  3. Not getting site costs in writing before signing — verbal estimates have no legal weight
  4. Signing before comparing multiple builders — always get at least 3 full inclusions proposals
  5. Not reading the contract in full — key terms like sunset clauses and variations can cost you dearly
  6. Ignoring the cooling-off period — you typically have 5 business days in Queensland to exit without significant penalty
  7. 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.

Read the Guide

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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