⚡ TL;DR — Quick Summary
- Most Perth buyers sign building contracts without reading them, because they are 60+ pages of legal language written to protect the builder.
- Six contract traps cause the majority of unexpected costs: PC items, Provisional Sums, variation clauses, delay clauses, dispute resolution loops, and front-loaded payments.
- Each trap has a practical fix, but you need to act before you sign, not after the slab is poured.
- “Turnkey” is a marketing term, not a legal guarantee. Always get a list of explicit exclusions.
- The contract, the salesperson, and the inclusions list are all designed by the builder. You are the only party without professional representation, unless you choose to change that.
Building a house is a massive deal, but most people sign the contract without really reading it. Why?
🔍 Why Most Buyers Don’t Read Their Contract
📄 60+ pages of legal language
Written by the builder’s lawyers to protect the builder, not you.
🏡 The display home rush
The sales experience is designed to create urgency and get you signing quickly.
⚖️ Conveyancers aren’t enough
They handle property transfer. What you need is a construction expert.
⚠️ The Result
You get hit with thousands in unexpected costs and have no power to fight back mid-build.
6 Building Contract Traps You Must Watch Out For
Trap 1: Prime Cost (PC) Items — The Budget Hole
WHAT IT IS
A placeholder amount for items not yet chosen, such as taps and tiles.
WHY IT’S A TRAP
The allowance is almost always too low, guaranteeing a higher cost later via a variation invoice.
HOW TO FIX IT
Check the allowance against real retail prices before you sign.
Trap 2: Provisional Sum (PS) Items — The Open Chequebook
WHAT IT IS
An estimate for uncertain work, such as rock excavation or earthworks.
WHY IT’S A TRAP
It exposes you to massive, open-ended cost blowouts. The builder has no reason to estimate conservatively.
HOW TO FIX IT
Demand a clear cost cap or mandatory approval for any costs that go over the estimate.
Trap 3: Variation Clauses — The Price Changer
WHAT IT IS
How the price changes after you sign, for material costs, engineering changes, and so on.
WHY IT’S A TRAP
Vague clauses let the builder raise the price mid-build when you have no leverage, after the slab is poured.
HOW TO FIX IT
Insist on a clause requiring written approval from both parties before any variation proceeds.
Trap 4: Completion and Delay Clauses — Who Pays for Wait Time?
WHAT IT IS
The contracted timeframe for completing the build.
WHY IT’S A TRAP
Contracts are full of “excused delays” (weather, supply issues) that let the builder push the date without penalty, leaving you paying rent or extra interest.
HOW TO FIX IT
Negotiate a Liquidated Damages clause: a daily fee the builder pays you for unexcused delays.
Related: How Building Brokers Prevent Timeline Blowouts
Trap 5: Dispute Resolution Clauses — The Internal Loop
WHAT IT IS
The process for resolving problems that arise during your build.
WHY IT’S A TRAP
Many contracts force you through the builder’s slow internal process first, delaying your access to independent help like the State Administrative Tribunal (SAT).
HOW TO FIX IT
Ensure a clear, timely path to independent resolution is written into the contract.
Trap 6: Deposit and Progress Payments — The Cash Risk
WHAT IT IS
The schedule for paying the builder at each stage of the build.
WHY IT’S A TRAP
Some builders front-load payments, meaning you pay a high percentage early on. If they go bust (common in WA), you’ve paid for work not yet done.
HOW TO FIX IT
Payments must closely match work completed. Know the limits of your Home Indemnity Insurance.
Related: How to Avoid Perth Builder Collapse Risk
The Independent Building Broker Advantage
An independent building broker like Better Way 2 Build is your advocate. What we do:
📋 How We Protect You Before You Sign
Phase 1: Audit the Contract
Check the Maths: Scrutinise all PC and PS allowances against real costs and push for realistic numbers.
Lock Down Costs: Tighten variation clauses to require your written approval for every extra dollar.
Negotiate Penalties: Get Liquidated Damages clauses in place for delays.
Phase 2: Protect Your Position
Protect Your Money: Review payment schedules to prevent front-loading.
Compare the Fine Print: Help you choose the best contract, not just the lowest price.
Related: What Is a Building Broker and Why Should You Use One | 8 Ways a Building Broker Saves You Time and Money
Don’t Fall for “Full Turnkey”
Warning: “Turnkey” is a marketing term, not a legal guarantee. It doesn’t mean everything is included. Always get a list of what is explicitly excluded, because that’s where the surprise costs live.
Related: Fixed Price Turnkey Builds for Investment Properties
Do Not Sign Until Someone Is in Your Corner
Important: “The contract, the salesperson, and the inclusions list are all designed by the builder. You need professional representation before you sign.”
The contract sitting in front of you was written by lawyers working for the builder. The person explaining it to you works for the builder. The inclusions list was designed by a marketing team working for the builder.
The Builder’s Team
Lawyers who wrote the contract. Sales staff who explain it. A marketing team behind the inclusions list. All working for the builder.
Your Team (Without a Broker)
You are the only person in that transaction without professional representation.
Your Team (With a Broker)
An independent expert reviewing the contract, benchmarking allowances, and negotiating on your behalf, at no cost from any builder.
Better Way 2 Build provides independent contract scrutiny, builder vetting, and on-the-ground advocacy for Perth buyers and investors who refuse to navigate this process alone.
Better Way 2 Build — Perth’s Building Brokers
Independent contract scrutiny, builder vetting, and on-the-ground advocacy. Our service costs you nothing from any builder, and the most valuable conversation you have in this process may be the one before you sign.
Serving Perth Metro | First Home Buyers | Investment Properties | Custom Homes
Frequently Asked Questions About WA Building Contracts
Do I need a solicitor to review my building contract in WA?
A solicitor can review a contract for general legality, but a construction-specific reviewer, such as an independent building broker, is better placed to identify the clauses that create practical risk during your build. Both is better than either alone.
See: Why Independent Building Advice Is Key
Can I negotiate a building contract with a volume builder in WA?
Yes, more than most buyers realise. Volume builders have standard contracts, but many clauses are negotiable, particularly PC allowances, provisional sums, and variation processes. An independent broker knows which clauses are movable and how to frame the negotiation.
See: Volume Builders vs Custom Builders in Perth
What is the Home Indemnity Insurance scheme in WA?
Home Indemnity Insurance (HII) is mandatory for most residential building work over $20,000 in WA. It protects buyers if a builder becomes insolvent, dies, or disappears. However, it has coverage limits and does not protect against poor workmanship that the builder is still operating to fix. Understanding its scope and its gaps matters.
See: How to Avoid Perth Builder Collapse Risk
How long does a builder have to complete my home in WA?
Completion timeframes vary by contract. Under the Home Building Contracts Act 1991 (WA), certain consumer protections apply, but the contracted timeframe and excused delay provisions in your specific contract will determine your real position. Always negotiate these terms upfront.
See: How Building Brokers Prevent Timeline Blowouts
What does an independent building broker cost in WA?
Better Way 2 Build charges a transparent fee directly to the client, not a commission from any builder. The exact fee depends on the scope of service, but the cost of independent advocacy is routinely recovered through negotiated contract improvements, avoided variations, and prevented mistakes.
See: Our Costs at Better Way 2 Build
Better Way 2 Build | Building Broker Services | Serving Perth Metro and Greater Western Australia
