A friendly, plain-English review of your HIA or MBA building contract, before you sign.
Building your home is one of the biggest financial commitments you will ever make. The contract your builder asks you to sign decides what you get, what you pay, and what happens if something goes wrong along the way. Before you put your name to it, it is well worth having a lawyer read it properly.
Hendersons Legal reviews residential building contracts for home owners right across Victoria. We look for the clauses that could cost you later, explain what they mean in words you can actually understand, and tell you what to ask your builder to change. This page forms part of our wider building and construction practice and our work for home owners and investors.
Why we recommend a building contract review
We strongly recommend having your building contract reviewed before you sign. A building contract is long, technical, and written to protect the builder. Most home owners sign it trusting that a “standard” form must be fair. Often it is not. Many builders also add their own special conditions that change the standard terms, sometimes dramatically, and almost always in the builder’s favour. We have reviewed contracts with more than 20 special conditions, and some with as many as 70. A short review now can save you a long and costly dispute later.
HIA and MBA building contracts explained
Most Victorian home builders use one of two “standard” contracts: the Housing Industry Association (HIA) contract, or the Master Builders (MBA, known in Victoria as MBAV) contract. Both are reputable starting points, and both are drafted with the builder’s interests firmly in mind. The word “standard” gives people a false sense of comfort. The base terms may be industry-standard, but the price, the schedule, the allowances, and the special conditions are not. Two HIA contracts from two different builders can look worlds apart once those blanks are filled in.
Melissa Henderson spent over five years running a large, multi-award-winning home extension company, so she reads an HIA or MBA contract the way a builder does. That means she can quickly tell you which special conditions are fair, which are unreasonable, and which may breach the builder’s obligations under Victorian law.
What our building contract review covers
When you send us your contract, we read all of it, not just the front page. Our review looks at:
- The contract price, deposit, progress payments, and how any variations will be priced
- Allowances and provisional sums that can quietly blow out your final cost
- The building period, extension of time clauses, and any liquidated damages
- Every special condition, flagged clearly as reasonable, unreasonable, or a possible breach of the builder’s statutory obligations
- Your builder’s registration, insurance eligibility, and record on the Building and Plumbing disciplinary register
- The proposed appointment of the building surveyor
- Whether your contract is a fixed-price, lump sum or cost-plus arrangement, and what that means for your budget certainty
You would be surprised how often those last few checks turn up a problem. We give you a clear written report with our comments and the changes we suggest, so you can go back to your builder and negotiate from a position of knowledge rather than hope.
The cooling-off period is not enough on its own
Victorian law gives you a short cooling-off period on a major domestic building contract, usually five business days after you receive a signed copy. It sounds like a safety net, but it is a narrow one. Five business days is not long to read and understand a complex contract, and the right to cool off disappears altogether if you engage a lawyer to check the contract before you sign. Getting proper advice up front gives you far better protection than relying on the cooling-off period to bail you out afterwards. The best time to fix a bad clause is before anyone has signed anything.
Building your family home? Talk to us before you sign
Most of our contract review clients are ordinary mums and dads building the home they plan to live in for years. You have saved hard for it, chosen it carefully, and you want it done right. A building contract review is a small, fixed cost at the start of the project that can prevent the kind of dispute that drags on for months at the Building and Plumbing Commission or VCAT. If a problem does arise down the track, you will already have a lawyer who knows your contract inside out. If you are buying or selling a property as part of the move, ask us about our conveyancing services too.
Frequently Asked Questions
What is a building contract review?
A building contract review is when a lawyer reads your proposed residential building contract before you sign it, explains what each part means, and flags any terms that put you at risk. For HIA and MBA contracts in Victoria, that includes the price, allowances, building period, and the special conditions the builder has added, so you can negotiate changes before you commit.
Should I have my building contract reviewed before I sign?
Yes. Standard HIA and MBA contracts are filled in and added to by the builder, usually in the builder’s favour. A review before you sign lets you fix problems while you still have bargaining power, rather than arguing about them after work has started.
Do you review both HIA and MBA (MBAV) contracts?
Yes. We regularly review both Housing Industry Association and Master Builders contracts, including all of their schedules and special conditions, for home owners across Victoria.
How much does a building contract review cost?
We give you a fixed-fee estimate before we start, along with a disclosure statement and costs agreement, so you know the cost up front. Send us your contract and we will confirm the scope and the fee.
What if I have already signed my building contract?
It is still worth getting advice. We can explain your rights, check whether the cooling-off period still applies, and help you deal with any problems in the contract or with the works. The earlier you call, the more options you usually have.
Speak to a Building Contract Lawyer Today
If a builder has handed you a contract to sign, do not sign it until you have had it checked. A review now is far cheaper than a dispute later. Call Hendersons Legal on (03) 9629 2211 or complete our online enquiry form and one of our experienced building lawyers will be in touch.
