A preliminary service agreement is a written contract between you and a builder for the early work on your project: site inspection, preliminary design, cost estimates and approvals. It comes before, and lays the groundwork for, the main residential building contract.
Before you sign or pay anything, make sure you understand its terms. Here's what to look for.
C4 - Asking the Right Questions Checklist
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Last updated 28 Oct 2026 · Revision 3 · Free updates for life
Checklist Type: Minor
Form Factor: Fillable, print-ready PDF (A4, 26 pages)
When to use: Choosing a builder (before you pay a deposit or sign)
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Master Builders Queensland Preliminary Agreement
Here's a version of the Master Builders Queensland (formerly QMBA) preliminary agreement. When you read one, look for the scope of work, the fee and when it's due, what you get to keep (plans, soil tests, surveys), and what's refundable if you don't go ahead.
Scope of work
The agreement should clearly define what the builder will do, such as site inspections, preliminary design work and cost estimates. Make sure it matches what you expect.
Timeline
It should say how long the preliminary work will take, so you can plan your overall timeline and budget.
Payment terms
It should set out the fees: any deposit or retainer, the total for the preliminary work, when payments are due, and what happens if you cancel.
Contract law
A preliminary service agreement is legally binding. Read and understand every term before you sign, and ask the builder, or get legal advice, if anything's unclear.
Residential building contract
The preliminary agreement leads to the main building contract. Understand how the two relate, and whether any fee you pay now is credited against the contract price if you go ahead.
Before signing, do your research. Find a reputable builder with experience building the type of home you want, check their QBCC licence, ask for references and read reviews.
Second, have a clear budget and timeline in mind. It helps you negotiate the agreement and judge whether you're getting a fair deal.
Third, understand the payment and exit terms. In Queensland, check whether your agreement counts as a domestic building contract under the QBCC Act (Schedule 1B), which brings rules on deposits and a 5 business day cooling-off period, and ask exactly which part of the fee is refundable if you don't proceed. The QBCC's guidance on contract and agreement types is a good starting point.
Once it's signed, the builder starts the preliminary work. Here's what that usually involves.
Site inspection
The builder visits the site to assess the land, the surroundings and any challenges that will affect the build.
Preliminary design work
The builder works with you on a preliminary design, which may include sketches, floor plans and elevations.
Cost estimate (the builder's "first run" price)
The builder gives you an estimate of the cost to build, which may break down materials, labour and other costs.
Permits and approvals
The builder may help with permits and approvals. Project builders typically ask their private certifier for "pre-lodgement advice" at this stage.
Pre-lodgement is a lot like our Checklist 1: the certifier checks council overlays for any obvious requirements or restrictions on your site.
Other services: Depending on the scope, the builder may also arrange soil testing, a contour survey and engineering.
Once the preliminary work is done, the builder uses it to prepare the detailed building contract, with the timeline, price, specification and scope of work.
Any change to the basis of the preliminary agreement generally means the costings need to be redone, so time, materials and labour are properly budgeted for the change.
Conclusion
The preliminary service agreement sets the ground rules for the whole project. Research your builder, understand exactly what you're paying for and what's refundable, and get the scope in writing. Clear expectations now mean fewer arguments later.
