Why Is It Important to Get a Fixed Price building Contract?


Person signing a document on a wooden table.

When it comes to building a new house, there are plenty of things to consider. You have to choose the right location, assess your budget and find a builder who will be able to deliver what you want at an affordable price. A fixed price building contract can be useful in helping you budget for your project, and offers real peace of mind when building.

What Is a Fixed Price Building Contract?

A fixed price building contract is a contract for the construction of a building. It’s important because it guarantees that you won’t have any unexpected costs creep up during the process unless you make changes to the build after the contact is signed. You can also rest assured that we will stick to the schedule outlined in the contract, so there won’t be any delays in getting your home built or having it inspected by Council unless there are unforeseen circumstance.

The benefit of having a fixed price building contract is that there are no hidden costs or surprises at the end of construction, when it comes time for payment. The cost stated in your agreement is what you will pay.

If a builder says one price, what exactly are they quoting for?

Fixed price building contracts are different from a traditional quotation as they cover the entire job, including all materials and labour. This means that you won’t get any nasty surprises at the end of your build!

Can a fixed price really remain fixed in the real world?

We will be able to provide a revised fixed price if there are changes to the assumptions provided at the time of quoting. For example, in your initial assessment of your project plans and drawings, you may have estimated that it will take approximately 30 days for demolition and construction to complete. Now, however, there are unforeseen circumstances that have caused delays on site and this has meant that demolition and construction is taking longer than predicted (and therefore costing more). We are able to re-assess their original quote in these circumstances by taking into account these extra costs. It’s important to note here though: these types of revisions happen very rarely.

How to check out fixed price builders and their credibility.

When you’re looking for a fixed price builder, it’s important to check out their website. Does it have a lot of information about their company and previous projects? Can you find their contact details, like their phone number or email address? Do they provide testimonials and reviews from previous clients so that you can get an idea of the quality of work they produce? Are they licensed builders with the QBCC (Queensland Building and Construction Commission)? All these things show that this company is reputable and trustworthy.

The benefits of choosing a Fixed Price Building Contract.

A fixed price building contract is a construction agreement that guarantees you the exact amount of money you will pay for your project. This allows you to budget with confidence, knowing exactly what it will cost to build your home. You can also make financial decisions based on your budget and the terms of your fixed price contract.

We hope you have found this article helpful. Contact us learn more about how GW Homes can make your home building dreams a reality. Chat to one of the design consultants today, call (07) 3393 1399 for a no-obligation chat. 

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