Once you have decided to commit to a particular builder’s proposal they will introduce the topic of the building contract. There is a good chance that by this time you will have built up a good rapport and trust with them. After all, why would you be signing up with somebody you didn’t get along with?
Most of us, if we like the person and feel that the person likes us, are likely to read the best of intentions into any of the clauses in the contract. It’s easy to think about it as a formal expression of the project that you have all already agreed to do together.
Assuming the ‘best case scenario’ is a trap.
Despite your good relationship with the builder now, try to imagine it has all gone horribly wrong - you feel he has cheated you, or is not delivering the standard of work he led you to believe you were going to get. Unimaginable? Unfortunately, it happens all the time. You may imagine you are the world’s best judge of character and you would ‘know’. Well perhaps you are and in which case you can cheerfully ignore this advice!
In case you are not, have a think about what the clauses in the contract allow him (it’s nearly always a him) to do, worst case? If you have legitimate issues with how the build is going, how does the contract protect your rights? Building is stressful enough without feeling your builder has you ‘over a barrel’ legally.
Industry standard contact
Your builder will likely introduce the contact as ‘industry standard’. This carries with it the idea of ‘nothing to worry about’, ‘same thing everyone uses’. Neither of these things are true. So called ‘Industry Standard’ contracts are written by the industry bodies for…yes, builders. They have been tweaked and improved over many years and many scenarios to protect the interest of…builders. This means in some cases, that no matter how badly the builder behaves, or how poorly you think they are working, you will fare very badly if you want to exit the contract that you have agreed to in better days.
Some law firms have published comparisons of different types of contract. Get familiar with the differences between them and why lawyers think some contracts are friendly to you and some are friendly to the builder.
The builder is likely to resist
Your builder is going to want to use the contract they are familiar with, which is usually the one their industry body recommended they use. This is not surprising, they may not have given it much thought or be nervous about making changes and not understanding the implications. However, it is worth trying to persuade them to use the contract that you prefer - as this will be your first test run of how they will behave when something needs to be negotiated between you. If they are a bully, now is a good time to find out before you have signed. A good, honest builder will likely not be put off by a consumer friendly contract - they intended to do good work anyway out of a sense of pride. The bad builder will resist fiercely, because they know they could be held to account for their often shoddy work or dodgy practices (you may find out later that they are no stranger to court proceedings and are well versed in the protections a builder-friendly contract gives them).
Snooze fest
Try to resist your eyes glazing over and clicking the ‘Agree’ button that we are so accustomed to with online contracts - for most people this will be the most expensive thing you do in your life. This is the contract you want to pay attention to!
You will want to spend time thinking about how beautiful your lounge room or staircase is going to look, but don’t skip the research on this essential step. The contract is going to govern every aspect of the duration of the build and what it says could be the difference between a successful build and a disaster for you and your family.