What is a Preliminary Agreement you ask?

What is a Preliminary Agreement you ask?

Many people have come to us having purchased a ‘cheap’ plot of land, without considering why it is cheap (flood, fire, airport acoustic rated or steep). Many basic factors can add thousands of $$$ to your overall costs and eat away at your dream home build budget.

Preliminary agreements uncover all of the details required for a builder to quote a build on your land, specific to all characteristics of the land and its local Council or Estate requirements.


Your chosen contractor may ask you to enter into a preliminary agreement before signing a contract. This agreement allows a contractor to undertake work such as plans, site survey, soil testing and building approvals.

This way you know the real cost to build the house you want, not the base price only to suddenly find it is much more. This quote is accepted before you enter a Contract, so don’t be tricked into signing a contract before all of your preliminary results are available.

The Domestic Building Contracts Act 2000 requires the contractor to obtain foundation data before getting you to sign a contract.

A preliminary agreement is not a regulated contract, but it should set out any costs you must pay to the contractor in performing the works listed in the preliminary agreement.

If you have specific questions about how soil types affect your quote or anything regarding the first big step toward your build, please contact Stroud Homes Northern Rivers on 1300 699 392 or book a meeting with the sales team: 0428 709 612.