Pacific Law Team – Building Contracts – 10th September 2025

In this week’s WWW, the team from Pacific Law breaks down the critical elements of building contracts that every investor and developer must understand before signing.

Whether you’re constructing your first duplex or managing multi-unit developments, this webinar reveals how to protect yourself legally, avoid costly mistakes and keep your project on track.

What you’ll learn from this session:

Contract Types and Key Differences

You’ll learn the differences between fixed-price, cost-plus, and turnkey contracts, and when each one is appropriate. The presenters explain how to assess which contract best fits your project risk profile, ensuring you maintain financial control and minimise exposure to builder variations.

Understanding Variations and Scope

The session outlines how to handle variations – changes to plans, materials, or specifications – without losing control of your budget. Pacific Law stresses the importance of ensuring every variation is written, agreed upon, and priced upfront, rather than assumed or verbally confirmed on-site.

Managing Timeframes and Delays

You’ll gain insight into how to manage construction timelines, particularly when delays occur due to weather, supply issues, or council approvals. The presenters highlight the need for clear extension-of-time clauses, ensuring builders can’t unreasonably claim delays or impose extra costs.

Retention, Defects, and Warranties

The lawyers walk through what’s legally required around defect liability periods, retention amounts and builder warranties. These ensure the builder remains accountable for fixing issues post-handover and that you retain enough funds to cover unfinished or defective work.

Payment Schedules and Progress Claims

You’ll learn how to structure progress payments to protect your cash flow. Pacific Law advises against front-loading payments and recommends tying each instalment to specific milestones completed on-site and verified independently where possible.

Termination Clauses and Dispute Resolution

The session explains what to do if things go wrong—how and when you can legally terminate a contract, what penalties may apply, and how dispute resolution works. They outline steps for mediation and litigation, helping you understand your position before escalating an issue.

Real-World Insights and Legal Warnings

Using real case examples, Pacific Law illustrates how poorly written contracts or rushed signings can cost investors tens of thousands of dollars. Many disputes arise not from the build itself, but from ambiguity in documentation – reinforcing the need for legal review before signing anything.

They also caution investors to avoid relying solely on builder-supplied contracts, as these are designed to protect the builder first. Independent legal advice can identify hidden risk areas and ensure fair terms.

Key Takeaways

• Always review contracts with a property-focused lawyer before signing.
• Ensure all variations are documented and priced.
• Use milestone-based payment schedules to control risk.
• Maintain clear written communication throughout the project.

By the end of this webinar, you’ll have a clear understanding of how to read, negotiate and manage your building contracts with confidence – protecting both your money and your project timeline.

Action Items

• Obtain legal and financial advice before signing a building contract.
• Thoroughly research the builder’s history, qualifications and past projects before engaging them.
• Ensure the building contract includes a detailed scope of work with specific references to plans, features, and fittings.
• Proactively manage the project timeline and stages and document any delays or issues with the builder.
• Review the list of exemptions/exclusions for building work that does not require a licensed tradesperson in the relevant state legislation.