If you’re building your first home, you’ll come across different types of contracts — and one of the most important is the fixed-price building contract.
It’s designed to give you clarity, certainty, and peace of mind before construction begins.
Here’s the simple breakdown.
1. What a fixed-price contract actually means
A fixed-price building contract is a contract where the total cost of your build is locked in before construction starts.
This price includes:
- Your chosen floorplan
- Standard inclusions
- Agreed upgrades
- Site costs (if fixed)
- Labor and materials outlined in the contract
The key benefit?
Your price doesn’t change unless you change something.
No hidden surprises.
No unexpected invoices halfway through your build.
2. Why fixed-price contracts matter for first-home buyers
Building a home can feel overwhelming, and unpredictable costs are one of the biggest stress factors.
A fixed-price contract helps because:
- You know the exact total before committing
- Your lender can approve your loan confidently
- You avoid cost blowouts during construction
- Your budget stays on track
- It’s easier to compare builders
For first-home buyers — especially those using low-deposit schemes — having a clear, stable build price is essential.
3. What’s included (and what to check carefully)
Most fixed-price contracts cover everything needed to build your home, but there are still a few things you should look out for.
Make sure your contract clearly states:
- Site costs are fixed — not an estimate
- Driveway, flooring, and landscaping are included (if turn-key)
- Developer guidelines have been accounted for (fascia, façade requirements, etc.)
- Upgrades are listed with exact pricing
- No provisional sums that can change later
If something isn’t written in the contract, assume it’s not included.
A great fixed-price contract removes guesswork and gives you full transparency.
4. Why builders offer fixed pricing
Fixed-price contracts benefit buyers — but they also benefit builders.
They make the build smoother by:
- Reducing variations
- Keeping the project moving
- Making expectations clear
- Helping both sides avoid disputes
Builders prefer fixed agreements because they know what’s required upfront — and you get certainty from day one.
