My experience as a Residential building contracts administrator made me realise just how often people sign their building contracts without fully understanding what they are actually agreeing to. This of course is very dangerous and reckless because it can leave you in debt and in alot of trouble.

Today I want to share some points on residential building contracts that will hopefully help you understand what a contract is, what it should contain and how to check a contract before signing on the dotted line.

Photo: Pinterest


In simple terms, a building contract is a legally binding agreement between yourself – the client, and the builder or contractor you have chosen to build your home. But before we dive deep, it is important to understand the composition of a building contract.


Firstly, a building contract is not a singular document; it is a collection of documents that outline the terms and conditions of the build. Depending on your builder or contractor, your building contract may have other documents. However, your contract must always contain full working drawings, addenda, specifications, site works costing’s, home build costing’s with inclusions and a lump sum agreement which specifies payment structures, build time frames, builder and client obligations, etc. These are the main parts that make your building contract; therefore it is very important that you check each 1 of these documents carefully before signing.