What goes wrong most often when a builder builds or renovates a home in NSW?

Most problems aren't bad building work. They're a document that never arrived and nobody asked for. Almost every dispute goes back to one of three moments: before you pay anything, when the price changes during the job, and when something is wrong.

What should I get in writing before agreeing to a variation?

Four things: exactly what is changing, clear enough that a stranger could tell whether it was done; what it costs and whether that includes GST; what it does to the finish date; and both of your signatures, before the work is done.

Having a home built in NSW? What your builder owes you

Q: What is a variation in a building contract?

A variation is any change to what was agreed: something added, removed, or found along the way. Variations are normal. Agreeing to one without writing it down first is what causes trouble.

The rules at a glance

All amounts include GST.

Over $5,000

A written contract is required — and it’s the builder’s legal duty to give it to you, not yours to chase.

Over $20,000

The builder must give you a home warranty insurance (HBCF) certificate before taking any money, including the deposit. You also get a 5 business day cooling-off period.

Any contract

The deposit is capped at 10% of the contract price. Progress payments must match work actually done, not time passed.

Afterwards

Statutory warranties — 6 years for major defects, 2 years for others — plus a separate legal duty of care, and a 10-year overall limit on defect claims.

Three moments that decide how it goes

Almost every dispute between an owner and a builder goes back to one of these.

Before you pay anything

Contract, licence, insurance certificate, and a deposit of no more than 10%. This is when you have the most say, because you still hold the money. What your builder owes you before you pay →

When the price changes during the job

A variation is any change to what was agreed — something added, removed, or found along the way. Variations are normal. Agreeing to one without writing it down first is what causes trouble.

Before you say yes to a variation, get these four things in writing:

What exactly is changing — clear enough that a stranger could tell whether it was done.
What it costs, and whether that includes GST.
What it does to the finish date. A change that quietly adds three weeks can also remove your right to complain about the delay.
Both of your signatures, before the work is done. Afterwards you’re negotiating, not agreeing.

When something is wrong

Your rights last longer and reach further than most owners are told — including a separate legal duty of care that doesn’t need a contract, passes to the next owner, and can apply to individuals, not just the company. What you’re entitled to →

Say no to “we’ll sort the paperwork out later”

It’s rarely meant badly, but it’s where most disputes start. A change agreed after the work is done relies on two people remembering a conversation differently.

Every change in writing, before it’s built

eSiteOffice writes up each change the way your contract requires — what it is and what it costs — sends it with proof, and reminds you of every date your contract sets.

Opens in October. Register to be one of the first to use it and keep the launch price for as long as you stay.