HIA Contract review with lawyer (Sydney)

balajmn · Aug 29, 2022 12:43 pm

Dear Experts.
My builder (in Sydney) shared his HIA contract and i can see there are lot of clauses favorable to builder.
I know most of you guys recommended to get the contract reviewed by Lawyer before signing it.
I am planning to consult with a lawyer before i sign it.
But my question is, how flexible the builders are to change or remove the clauses based on the lawyer comments.
Will the builder accept the lawyer comments or they wont. if they wont then what is the use of going with lawyer here. In worst case scenario, do I need to be prepared to go with another builder who agree with lawyers points.
please share your experience as you have gone thru this situation as i want to be prepared for it as i am first time building.
Thanks and appreciate your time.

bashworth · Aug 29, 2022 4:12 pm

In the past I have studied the Standard HIA Contract.

You could say it has clauses that favour the buillder and also has clauses favouring the client.

Overall I would say it is reasonably fair to both parties.

When builders offer a price for a build it is based on you accepting this contract.

If you want the contract skewed towards yourself the builder is going to up his rates or refuse to deal with you, as will the majority of the alternative builders.

About all you achieve from your visit to the lawyer is likely to be some tinkering around the edges unless you pay the price premium.

In my experience the best results for a build are achievedt by ensuring, once signed, the conditions of the contract are enforced.

Kippers01 · Aug 29, 2022 4:19 pm

Pay particular attention to the liquidated damages clause and $ amount. What are your costs of a delay of handover? How much will the builder compensate you for these costs? Are there any clauses that reduce the builders reponsibility here? Is everything clear?

SaveH2O · Aug 29, 2022 4:23 pm

Also look for performance solutions!

Noname · Aug 29, 2022 4:27 pm

As bashworth has highlighted, youre unlikley to get any movement without a premium attached. Whether this is worth it to you or not is subjective.

There are benefits to getting it reviewed over and above making changes. That is that YOU understand the contract. Short of the standard HIA contract, builders will often insert special clauses, and its these where much of the tomfoolery has the opportunity to be inserted. Some of these special clauses are absolutely unfavorable and may elicit a run for the hills vibe. Listen to your gut and don't even try to negotiate these. Others are not unreasonable and often just supplement some of the more ambiguous HIA clauses.

Whether you do or don't is up to you, but don't expect to have contracts rewritten in your favour over that of the builder.

AlexLawyer · Jan 11, 2025 7:54 am

Hello, building lawyer here. Much of what has been said above is spot on: the builder won't like departing from the standard terms of the HIA contract (but it doesn't hurt to ask).

The big thing to what out for is the builder attaching their "special conditions" (or similar such document) into the contract. Often, those will work to amend the risk allocation of the standard HIA clauses to make it even more favourable to the builder and/or to make the property owner liable for more costs. DEFINITELY get those reviewed by a lawyer, you'd be amazed and the kind of conditions I've seen builders try to add over the years (such as the home owner being liable for the cost of the builder's own delays).

My firm does home building contract reviews and advice for a fixed price (with a fast turnaround time), take a look: buildrightlawyers.com

build-new-home-canterbury · Jun 05, 2025 11:07 pm

Hi AlexLawyer,

Are you based in Sydney? We'd like to come in for a quick 20 minute consultation. If it goes well, we’re looking to get help reviewing our HIA contract.

Thanks

build-new-home-canterbury · Jun 23, 2025 2:07 pm

Very accommodating and a top notch lawyer. Highly recommended :-D

AlexLawyer · Jun 23, 2025 2:24 pm

build-new-home-canterbury

Very accommodating and a top notch lawyer. Highly recommended :-D

Thank you for the kind words!