The smart buyer’s checklist before signing a fixed-price building contract

Building a brand-new home is an exciting prospect, but for many buyers, confidence and certainty comes down to understanding their fixed-price contract.Confusion over the phrase is common, and different interpretations between the builder and buyer risk leading to issues down the track.For most people, the big questions are: What exactly does a fixed-price contract lock in? And, how do you know whether the number on the brochure reflects what you will actually pay at handover?Nicholas Mihelis, Nostra Homes General Manager Business Growth Sales, says the good news is that with the right contract and the right builder, people can certainly achieve a new build on the budget they set out on."In the building industry, buyers can fear unforeseen costs when constructing a new home," he shares."So, fixed-price contracting means the figure provided is locked in and secure. If supply, material, or labour costs change, the consumer isn't affected.""There should be no hidden costs, allowing you to understand the total cost of the build and finance accordingly. It really means you can plan for the future without any nasty surprises.”Knowing what 'fixed price' means when building a new home is i...