10 Questions to Ask Before You Sign a Building Contract

For anyone planning a custom build or major renovation in Sydney

Why this matters:

Whether you're building your dream home or taking on a major renovation, the building contract is more than paperwork — it’s your blueprint for how the project will run, what it will cost, and how issues will be handled. Asking the right questions before signing protects you, ensures clarity, and avoids headaches down the track.

At LPC Projects, we welcome questions — it tells us you're serious, informed, and committed to a great result. Here's what we recommend every client ask:

1. What type of contract are we using — and why?

Not all contracts are the same. There’s fixed-price, cost-plus and more. Each has pros and cons depending on the project scope and level of finish.

Bonus tip: Ask your builder to explain why they’ve chosen this structure and how it protects both parties.

2. How are payments structured?

Look for a clear payment schedule tied to project milestones — not vague stages or percentages.

Are the stages clearly defined? Do they reflect real progress on site?

3. What’s included — and what’s not?

A good contract will have a detailed scope of works and clear allowances for finishes.

Provisional sums or PC items should be realistic and well-explained.

4. What happens if there are delays?

No one wants them, but they happen. Ask what the builder’s process is for managing and communicating delays, and check what the contract says about extensions of time.

5. How are variations handled?

Variations are common, but they need a process.

Are they to be approved in writing before the work begins? Is there a fee for managing them?

6. What warranties and insurances are included?

Ask about statutory warranties, Home Building Compensation Fund (HBCF) cover, and the builder’s own insurance.

For NSW jobs over $20K, HBCF cover is mandatory — always confirm.

7. Who’s managing the day-to-day on site?

Will you deal with the builder directly? A foreman? A site supervisor?

Clear communication channels avoid crossed wires later.

8. Have I read (and understood) the special conditions?

Many contracts include “special conditions” — often templated, and sometimes poorly worded.

Don’t be afraid to ask for plain English explanations — or get a solicitor to review.

9. What access will I have to the site?

You’ll want to see progress — but safety and insurance rules apply.

Agree early on how and when you'll be able to visit site during construction.

10. What happens if something goes wrong?

Nobody expects disputes, but good contracts include clear resolution processes.

Ask: How does the builder handle complaints? What’s the process if you're unhappy with part of the work?

Final Thoughts

The right builder wants you to feel informed and protected. At LPC Projects, we’re transparent from day one — no jargon, no hidden clauses, no “don’t worry about that” moments.

If your builder can’t confidently answer these 10 questions, it might be time to keep looking.