from tender to contract sign stage

Hi all, I am very new to building our house and requesting tender from two project builders for our just registered land. Can anyone tell me the series of events from tender stage to full loan approval stage?
Sign Tender--> pay deposit--> BAL assessment +final plans drawing + selection--> CDC first or contract signing first?


Our bank said they need a signed building contract with plans drawn to get full build loan approval from a pre-approval. When is the building contract signed? before or after going to the council?

The deposit you initially pay the Builder is for preparation of plans (PPA) only
It leads to the building contract and unless you have full certified CDC Plans and all documents...there is no contract
There is no point in signing an incomplete contract

The banks are tied of having clients come back for additional Funds because the engineering and CDC was not complete

Builders would like you to sign a contract after DA Planning
If there are any problems/Issues the client carries the burden
If that burden becomes too large you can cancel the contract ..

OT, It is up to the client to check all the information, don't be lead into signing a contract by a Salesman
generally clients walk out and loose $3-$5 k at PPA, at contract signing you stand to loose a lot more... several times more
Cheers
Chris

Thank you for your valuation information. So it is not safe for us to sign a contract at the “pre CDC/DA approval” stage. The builders are saying we sign a contract after plans are drawn following tender signing, which is before submitting to DA.


Will it be safe to sign this preliminary contract if the builders accept two clause?
-subject to full bank approval
-subject to Council plan approval