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The terms ‘fixed price’ and ‘cost plus’ refer to the method by which the cost of the construction is determined.
A fixed price contract, also known as a ‘lump sum’ contract, is a contract in which the borrower and the builder agree on a set price for the construction of the home. The builder takes on the risk if costs of materials rise beyond the costs estimated when providing the tender to the borrower for acceptance.
Borrowers should read their building contracts carefully and ensure that they are vetted by a solicitor if there is anything that is not understood before signing.
Not all banks will consider finance for a “cost plus” contract due to the variable nature of the construction costs.
We respectfully acknowledge the Traditional Custodians of all the lands on which we live and work, and we pay our respects to Elders past and present. We recognise their continued connection to the land, waters and culture and we acknowledge that sovereignty has never been ceded. Our head offices are located on the land of the Wurundjeri Woi Wurrung people of the Kulin Nation in Victoria, and the land of the Gadigal people of the Eora Nation in New South Wales.
We are an equal opportunity employer that celebrates the diversity, equity and inclusion of all people.
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