The contract as the single source of truth
The construction contract is the document that governs everything that follows. A well-drafted contract protects both parties — it defines what is to be built, at what price, by when, and under what conditions changes or disputes are resolved. A poorly drafted contract, or one with important terms left to verbal agreement, is the single most reliable predictor of a difficult construction experience.
At Century Built Homes, we use industry-standard contract forms recognised in Queensland — typically HIA (Housing Industry Association) or Master Builders Association contracts — with schedules and special conditions tailored to the specific project. We do not use bespoke contracts designed to transfer all risk to the client, and we do not ask clients to sign documents they have not had adequate time to review and, where appropriate, obtain independent legal advice on.
What must be attached to the contract
A contract without complete attachments is a contract with gaps, and gaps become disputes. Before any contract is executed, we ensure the following documents are finalised and attached: the current revision drawing set (with a drawing register listing every sheet number, title, and revision); the project specification; the schedule of finishes and materials (including brand, model, and grade for all prime cost items); the payment schedule with milestone descriptions; the programme of works; the schedule of provisional sums with supporting cost references; and the variation pricing method (whether by agreed rates, daywork, or quotation).
Any commitment made verbally during the negotiation process that is not captured in these documents does not exist from a contract administration perspective. We are direct about this with clients — not to be difficult, but because the most common source of post-contract conflict is "but I thought that was included." Written attachments eliminate that ambiguity entirely.
Payment milestones and progress claims
Queensland residential contracts are governed by the Queensland Building and Construction Commission Act 1991 and the Building Industry Fairness (Security of Payment) Act 2017. These Acts establish minimum requirements for payment terms, progress claims, and dispute resolution that apply regardless of what the contract says. Understanding these frameworks protects both parties.
Payment milestones for a new home typically align with construction stages: deposit on contract execution, base stage (slab or sub-floor complete), frame stage (wall and roof framing complete and inspected), lock-up stage (external walls, windows, doors, and roof installed), fixing stage (internal linings, doors, and fittings installed), and practical completion (all contracted work complete). Each milestone is verified before payment is requested — we do not issue progress claims for work that has not been physically completed and is available for inspection.
The contract will also specify the conditions under which a progress claim may be disputed, the timeframe for payment, and the consequences of late payment. These provisions exist to maintain cash flow for construction while protecting clients from paying for work that is not complete or not compliant.
The variation process — scope changes after contract execution
Variations are changes to the contracted scope of work made after the contract is executed. They are a normal part of construction — clients change their minds, site conditions differ from assumptions, or council approval conditions require modifications to the design. What matters is that variations are managed through a transparent, documented process rather than verbal instructions on site.
Our variation process is straightforward: any change to the contracted scope is identified and priced before work proceeds. A written variation order is issued, showing the description of the change, the cost impact (or credit), the programme impact, and the revised contract sum. Both parties sign the variation order before the work is carried out. No retrospective variations — where work is done first and priced later — are accepted without prior written agreement from the client.
The contract specifies the method by which variations are priced: for work types covered by agreed rates in the contract schedule, those rates apply; for novel or complex work, a quotation is obtained before instruction; for genuinely urgent work that cannot wait for a quotation, daywork rates apply, with time and materials records kept for verification.
Programme obligations and extensions of time
The contract programme is not a best-case scenario — it is a committed deliverable. We build programmes that are achievable based on current subcontractor availability, lead times for long-delivery items (steel, windows, cabinetry), and realistic weather allowances for the Queensland climate. A programme that looks tight on paper is a programme that will be missed.
Extensions of time (EOTs) are formal contract mechanisms for adjusting the programme completion date when delays arise from causes outside the contractor's control: client-directed variations, late instruction, inclement weather beyond the contract allowance, regulatory delays, or force majeure events. Our contract sets out the notification obligations (typically 10 business days from when the delay event becomes known), the evidence required to support an EOT claim, and the process for assessment. EOTs are assessed against the programme's critical path — a delay to a non-critical activity does not automatically extend the completion date.
Risk allocation and dispute resolution
Every construction contract allocates risk between the parties. The question is not whether risk exists — it always does — but whether it is allocated to the party best placed to manage or absorb it. Balanced risk allocation produces better commercial outcomes; heavily one-sided contracts create adversarial relationships and increase the probability of disputes.
The contracts we use include clearly defined mechanisms for resolving disputes before they escalate: a period for direct negotiation between the parties, followed by mediation through a recognised industry body if negotiation fails, followed by adjudication or QCAT (Queensland Civil and Administrative Tribunal) proceedings as a last resort. These mechanisms are faster and significantly less expensive than litigation, and they preserve the working relationship between the parties during the dispute resolution process.
Deliverables from Step 04
An executed contract with all schedules and attachments, an agreed programme of works, a confirmed payment schedule, a signed acknowledgement of the Prime Cost and Provisional Sum schedule, and a pre-construction checklist confirming that all approvals, insurance certificates, and site access arrangements are in place before construction commences. No project mobilises to site until this checklist is complete.
Business is governed by written contract, drawings, and approval documentation; this page is informational only and does not constitute an offer or guarantee.