Explaining Fixed Price Building Contract

Explaining Fixed Price Building Contract

Slade & Aletha Walters

Explaining Building Agreements

Building your dream home is one of the biggest decisions you will make in your life. It is also one of the most expensive. Therefore, it is crucial to understand the contract you will sign with your builder in order to avoid unexpected cost escalation during the construction period.

Fixed price contracts are the most common form of domestic building agreement, and means the builder agrees to perform building work for a fixed sum.

We asked Stroud Homes Fraser Coast Sales Manager Aletha Walters what you need to know about Fixed Price Contracts.


Can you explain the basics of a fixed price contract?

A fixed price contract is the agreement that the price presented will remain the same from the start to the finish of the project.

When you build with Stroud Homes you can be confident of a 100% fixed price quote.

Our paperwork and quotes are easy to understand so you know exactly what you’ll be paying and when.

We don’t include and Provisional Sum or Provisional Cost figures – we give ourselves no ability to increase the price at your expense.


Can you explain what the Preliminary Process and Preliminary Testing include prior to signing the fixed price contract?

The preliminary process involves a 4 Step process:

  1. Sit down and go through all of our inclusions with your new home sales consultant.
  2. Complete an onsite evaluation of your block.
  3. Complete a quotation and attend a quote presentation to go through what your price includes.
  4. A preliminary agreement is signed and a deposit is taken.

We then complete a site classification, council pre-check, Preliminary Designs and Site Plan. This is all information the bank requires in order to finalise your approval and for us to complete a fixed price contract for you.


Are you up front with all fees and charges?

Absolutely. We are honest and upfront with any extra costs that may be associated with the build. Unlike other builders we don’t under price and we give full in-depth quotations.

We don’t give what we call “throwaway” prices when you call us or drop into the Display Home. If you want a quotation, we do it properly and we make sure that everything you require is included.


If there will be any additional expenses, what may these include?

The only way that your price can go up, is if YOU upgrade something or YOU change something during the build.

Hampton Style Kitchen Upgrade


Does a fixed price contract allow for variations to the building work during the construction process?

Absolutely! As per your contract you can make changes during the build, however, these changes can be costly and we try and get these things right prior to starting construction.


Can all estimates or “provisional sums” for items such as sitework be determined exactly at the time of signing a fixed price contract?

Yes! We don’t guess and add the cost later – we get it right DURING the Preliminary Period which keeps us accountable and your budget on track!


Am I locked in to anything when signing a Preliminary Agreement?

No – this allows us to ensure that everything you want is within budget and on track – we don’t want any nasty surprises during the build so we do our homework first.


Contact

Would you like to talk to Aletha about building a home in the Wide Bay area? Give the team a call on 07 4152 6969 to talk through your options.

Aletha Walters
Aletha Walters