The Complete Guide to Fixed-Price Building Contracts

If you're planning to build a custom home, you'll need to understand building contracts before you sign anything. In Victoria, building contracts are governed by the Domestic Building Contracts Act 1995, and the most common type for luxury custom homes is the fixed-price contract.

What Is a Fixed-Price Contract?

A fixed-price contract specifies a total price for the construction of your home that cannot be varied unless you agree to a variation. This means your builder cannot come back to you mid-build and ask for more money — unless you request a change.

At Saleh Homes, we use fixed-price contracts exclusively. We believe transparency and predictability are fundamental to a good builder-client relationship.

What's Included?

Your contract should specify exactly what's included: the structural work, the inclusions (appliances, fixtures, finishes), site preparation, and any council or engineering fees. Anything not on the list is a variation.

What's Not Included?

Some costs are typically excluded from a building contract: soil tests, council permits, land surveying, connection of services, and landscaping. Ask your builder to list exclusions clearly.

Variations

If you decide to change something during construction — upgrade a stone, add a bathroom, shift a wall — you'll be asked to sign a variation. Variations are priced individually and added to your contract sum. This is completely normal. Good builders document every variation clearly.

Warranty

In Victoria, builders are required to provide structural warranties on completed homes. Confirm what your contract includes.

If you'd like to understand what a Saleh Homes contract looks like before committing, speak to our team. We're happy to walk you through the process in plain language.