10 Things to ask before signing a building contract

Building a home or renovating your property is an exciting venture, but it can also be a complex and costly process. To ensure that the project runs smoothly and meets your expectations, it’s crucial to ask the right questions and get the necessary information before signing a contract with a builder.
Here’s a guide to help you understand what you should ask your builder to provide before committing to a contract
1. Detailed written Estimate
A clear and detailed estimate is essential to understanding the costs involved in your project. Before signing a contract, ask the builder for a comprehensive breakdown of all costs, including materials, labour, permits, and any other expenses that may arise.
This will not only give you a clear idea of the overall cost but will also help you avoid unexpected charges later.
Questions to ask:
- Can you provide a detailed written estimate that outlines all costs?
- Are there any potential additional costs that could arise during the project?
2. Timeline of the Project
Understanding the timeline is critical to managing expectations. Ask the builder for a project schedule that outlines key milestones, including when construction will start, estimated completion dates, and any phases of work. It’s also important to ask about potential delays and how they will be communicated.
Questions to ask:
- What is the estimated start and completion date?
- Are there any factors that could cause delays, and how will those be managed?
3. Contract Details
The contract is the legal foundation of your agreement with the builder, so it must be thorough and clear. Before signing, ensure that you understand all terms and conditions. Ask for clarification if there are any terms you’re unfamiliar with.
Questions to ask:
- Can you provide a full copy of the contract for review?
- Are there any clauses that might affect my rights or project costs?
- What happens if the project is delayed or if quality is not met?
4. Builders qualification and Experience
You want to ensure that the builder you hire is qualified and experienced in handling your type of project. Ask the builder about their certifications, licenses, and past projects like yours. This gives you confidence that they have the expertise to complete the work to a high standard.
Questions to ask:
- Are you licensed and insured?
- Can you provide references or examples of similar projects you have completed?
5. Subcontractors and Team Members
Many builders use subcontractors for specialized tasks. It’s important to know who will be working on your project and whether they are reputable. Ask the builder if they’ll be using subcontractors, and if so, request information on who they are and their qualifications.
Questions to ask:
- Will you be using subcontractors? If so, who will they be?
- Are subcontractors insured and qualified for the work they’ll perform?

6. Warranty and Guarantees
A builder’s warranty is an important factor in protecting your investment. Ask about the types of warranties the builder offers for the work, materials, and any appliances or systems they install. Ensure the warranty is clearly stated in the contract.
Questions to ask:
- What kind of warranty do you offer on your work?
- Does the warranty cover labour and materials? For how long?
- What steps should I take if I need to file a warranty claim?
7. Insurance and liability coverage
It’s crucial to make sure that the builder has adequate insurance and liability coverage. This protects you in the event of accidents, damages, or mistakes during the project. Make sure to confirm that the builder has both general liability insurance and workers’ compensation insurance for their employees.
Questions to ask:
- Do you have general liability and workers’ compensation insurance?
- Can you provide proof of insurance before work begins
8. Payment schedule
Agreeing on a fair and transparent payment schedule is essential to maintaining a healthy working relationship with your builder. Ask the builder how payments will be structured (e.g., deposit, progress payments, final payment) and ensure that milestones are clearly outlined.
Questions to ask:
- What is the payment schedule, and when will payments be due?
- What form of payment do you accept?
- Are there any penalties for late payments or early terminations?
9. Permits and Inspections
Depending on the scope of your project, the builder may be responsible for obtaining the necessary permits and scheduling inspections. Ensure that the builder is familiar with local building codes and regulations, and that they will handle all permit applications.
Questions to ask:
- Will you handle obtaining the necessary permits for this project?
- Will inspections be scheduled as required by local authorities?
- Who is responsible if the permits are delayed or denied?
10. Communication and updates
Effective communication is key to a successful project. Discuss how the builder will communicate with you throughout the project and how often updates will be provided. Having a clear communication plan in place will help avoid misunderstandings.
Questions to ask:
- How often will I receive updates about the progress of the project?
- What is the best way to contact you if I have questions or concerns?
- Will there be regular site visits or meetings to check on progress
Asking the right questions is Key
Before signing a contract with a builder, it’s important to ask the right questions to ensure that the project will meet your expectations, be completed on time, and stay within budget. Take the time to review all details carefully, from cost estimates to timelines, insurance, and warranties. This will help you make an informed decision and protect your investment throughout the construction process. A clear agreement and open communication with your builder are key to a successful and stress-free building experience.
If you are looking for a builder to renovate your property, we can help. Our team of experts works closely with you, answering all your questions upfront, so you can build with peace of mind and confidence. Contact us at Melbourne Renovations to get started.