A preliminary service agreement is a written contract between you and a contractor that outlines the services they will provide in the early stages of your home building project. This agreement serves as a starting point for your relationship with the contractor and lays the foundation for the more detailed residential building contract that will follow.

Before you sign any contract or pay any money, it's important to fully understand the terms of the preliminary service agreement. Here are some important aspects to keep in mind.

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QMBA Preliminary Service Agreement

Here is a link to view a version of the QMBA Preliminary agreement document

View the QMBA Preliminary Agreement

Scope of work

The agreement should clearly define the scope of work to be performed by the contractor. This may include services such as site inspections, preliminary design work, and cost estimates. Make sure that the scope of work aligns with your expectations for the project.

Timeline

The agreement should outline the timeline for completion of the preliminary work. This will help you plan your project timeline and budget accordingly.

Payment terms

The agreement should specify the payment terms for the contractor's services. This may include a deposit or retainer fee, as well as the total fee for the preliminary work. Make sure that you understand when payments are due and what happens if you need to cancel the agreement.

Contract law

It's important to understand that a preliminary service agreement is a legally binding contract. Make sure that you read and understand all of the terms and conditions before you sign. If you have any questions, don't hesitate to ask the contractor or consult with a legal professional.

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Residential building contract

The preliminary service agreement will eventually lead to the more detailed residential building contract. Make sure that you understand the relationship between these two contracts and how they relate to the overall project.

Before entering into a preliminary service agreement, there are a few considerations you should keep in mind. First, it's important to do your research and find a reputable contractor with experience in building the type of home you want. You may want to ask for references and check online reviews before making a decision.

Second, it's a good idea to have a clear idea of your budget and timeline for the project. This will help you negotiate the terms of the preliminary service agreement and ensure that you're getting a fair deal.

Third, understand payment terms: Review the payment terms outlined in the agreement carefully. Understand when payments are due, how much they are, and what happens if you need to cancel the agreement. Is there any cooling off period or refund if work is not delivered to you?

Once the preliminary service agreement has been signed, the contractor will typically begin the preliminary work outlined in the agreement. Here's a breakdown of what that work might entail.

Site inspection

The contractor will visit the site where your home will be built to assess the land, the surrounding environment, and any potential challenges that may need to be addressed during the building process.

Preliminary design work

The contractor will work with you to develop a preliminary design for your home. This may include creating sketches, floor plans, and elevation drawings.

Cost estimates or 1st Run

The contractor will provide you with an estimate of the costs involved in building your home. This may include a breakdown of costs for materials, labour, and other expenses.

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Permits and approvals

The contractor may help you obtain any necessary permits and approvals for the construction of your home. Project builders typically contact their private certifier at this time and as for "pre-lodgement advice."

In essence, pre lodgement is much like our Checklist 1 and is a series of checks done by the private certifier who checks council overlays for any obvious overlay requirements or restrictions that may apply to your site.

Other services: Depending on the scope of work outlined in the preliminary service agreement, the contractor may provide other services such as soil testing, contour surveys, and engineering/soil testing.

Once the preliminary work has been completed, the contractor will use the information gathered to create a more detailed residential building contract. This contract will outline the specifics of the construction project, including the timeline, budget, specification and scope of work.

It's important to note that the preliminary service agreement is just the beginning of the home building process, and the more detailed residential building contract will provide a more comprehensive understanding of what is involved in the project.

Any changes made to the basis of the preliminary service agreement generally require all costings to be re-evaluated to ensure time, materials and labour has been adequately budgeted to reflect the change.

In conclusion, a preliminary service agreement is an important contract that lays the foundation for your home building project. It outlines the scope of work, timeline, payment terms, and other important details, and serves as a starting point for your relationship with the contractor.

Before signing any agreement, it's crucial to do your research and find a reputable contractor with experience in building the type of home you want. Make sure you understand the payment terms and any cooling off period or refund policy in case of cancellation.

Once the agreement has been signed, the contractor will begin the preliminary work, which may include site inspections, preliminary design work, cost estimates, and obtaining necessary permits and approvals.

Remember, any changes made to the basis of the preliminary service agreement may require re-evaluation of all costings to ensure that time, materials, and labour have been adequately budgeted to reflect the change.

Overall, a preliminary service agreement can help ensure that your home building project runs smoothly and that you're working with a contractor who understands your needs and expectations.

Conclusion

In wrapping up, navigating the initial stages of a home building project can be intricate, and the preliminary service agreement serves as a fundamental road map to guide both homeowners and contractors through this phase. This agreement, while foundational, is pivotal in establishing trust, clarity, and mutual understanding between parties.

For homeowners, it's a protective measure ensuring that the contractor is aligned with their vision, budget, and expectations for their dream home. By researching potential contractors, thoroughly understanding the agreement's terms, and staying informed throughout the preliminary processes, homeowners can set the stage for a more structured and streamlined construction journey. As with any venture, open communication, meticulous planning, and informed decision-making are the keys to success.