Signing a building contract is one of the biggest steps in building a new home. But once the ink is dry, a lot of people are surprised to find that construction doesn’t start straight away. There are approvals to organise, engineering to complete, insurance to confirm and selections to lock in before anyone sets foot on site. Knowing what comes next and what you can do to keep things moving takes a lot of the uncertainty out of the process.
The Cooling-Off Period
In NSW, once you receive a signed copy of your residential building contract, you have five clear business days to cancel it without penalty. This cooling-off period applies to home-building contracts valued at over $20,000, and exists to give homeowners time to review the agreement properly before fully committing.
If you haven’t already had your contract reviewed by a solicitor before signing, the cooling-off period is your window to do so. Independent legal advice is worth considering, especially on your first build. A lawyer experienced in residential building work can flag anything unusual, including termination clauses, dispute processes and how variations are handled, before the contractual relationship becomes binding. It is always worth taking time to seek legal advice rather than rushing into something this significant.
Most people find that their builder is open to reasonable queries at this stage. Seeking legal advice doesn’t signal distrust; it signals you’re taking the build seriously.
Step 1: Finance and Insurance Are Confirmed
Before building work begins, two things need to be in order on the finance and insurance side.
For construction loans, your bank or lender will want to review your signed contract and plans before formally approving funds. Construction loans typically draw down in stages as the build progresses, with payments aligned to completed work at each stage rather than time passed. Understanding your loan drawdown requirements early avoids surprises later.
In NSW, for building projects over $20,000, your builder must provide you with a certificate of Home Building Compensation (HBC) insurance before requesting any deposit or progress payment. This cover protects homeowners if the builder dies, becomes insolvent, or disappears before completing the build. Check the certificate is valid before any money changes hands.
Under the NSW home building law, the maximum deposit for residential building work is 10 per cent of the contract price. Progress payments after that should reflect work actually completed at each specified stage, not simply time elapsed.
What you may need to do at this stage
- Confirm that finance is formally approved, and understand your loan drawdown process
- Respond promptly to any requests from your bank or broker
- Check that your HBC insurance certificate has been provided before paying your deposit
- Keep all documentation organised and accessible
Step 2: Approvals, Certificates and Compliance Are Organised
Depending on your block and local council area, your project may proceed through a Complying Development Certificate (CDC) pathway with a private certifier, or require a Development Approval (DA) through your local council. Both paths involve documentation and assessment periods.
In some states, a building permit is the common term for the approval required before construction can begin. In NSW, this is called a Construction Certificate, and it must be issued before any building work can legally start. It confirms that the detailed plans and specifications meet the Building Code of Australia and any relevant conditions. A building surveyor or accredited certifier is responsible for issuing this certificate and may carry out inspections at key stages throughout the build.
BASIX, the Building Sustainability Index, applies to all new residential developments in NSW. It covers water efficiency, energy use and thermal performance. Your BASIX certificate must be in place and its commitments reflected in your plans before construction starts.
In Newcastle and the Hunter Valley, site-specific requirements can add time to this stage. Block slope, bushfire overlays, flood mapping, mine subsidence zones, estate design guidelines and service availability can all generate additional reports or conditions. An experienced local builder will know which of these are common in your area.
Your builder cannot start the build until all required approvals are in place. Responding promptly to documentation requests at this stage reduces avoidable delays.
Why approvals can affect your start date
The approval pathway is one of the most common causes of a longer lead time between signing and site start. Some requirements sit with third parties, including councils, certifiers and service providers, and timelines can vary. Good communication between you and your builder during this phase makes a real difference.
Step 3: Final Selections Are Locked In
If your colour, fixture and material selections aren’t fully finalised at the time of signing, they need to be confirmed as early as possible. This affects ordering, scheduling and your ability to keep the build on track.
Selections typically include:
- Colour schemes for interior and exterior
- Flooring, tiles and benchtops
- Fixtures and fittings
- Appliances
- Cabinetry details
- Electrical selections, including lighting and power points
Delayed selections push back ordering. Some products have long lead times or limited availability, and the more detail you lock in early, the smoother the construction process tends to run once building work begins.
Step 4: Site Testing and Engineering Begin
Before building work starts, your builder needs to properly understand the site. This involves soil testing, surveying, engineering design and foundation planning. The results of soil testing determine the site classification, which directly affects the type of slab or foundation required.
Sloping blocks require additional engineering, as do sites with difficult access or unusual drainage. Material ordering and trade scheduling also begin during this phase. Getting materials on order early means the build can move quickly once the site is ready.
Step 5: You Attend the Pre-Construction Meeting
Before the first machinery arrives on site, your builder will schedule a pre-construction meeting. This is where everything is confirmed face-to-face: plans, specifications, selections, site access arrangements, communication channels, and the expected timeline.
Some useful questions to ask at this stage:
- Who is my main point of contact during the build?
- How will progress updates be communicated?
- What needs to happen before the site start date is confirmed?
- How are variations handled if I need to make a change?
- What are the payment milestones?
Step 6: Your Build Is Scheduled for Site Start
Once approvals are confirmed, finance is formalised, selections are locked in, engineering is complete, and the pre-construction meeting has taken place, the build is scheduled to start on site.
At this point, your builder coordinates trades, orders remaining materials and prepares the site. This may involve temporary fencing, demolition of any existing structures, site clearing and service connection arrangements.
Your exact start date depends on how smoothly the earlier stages have progressed, as well as trade availability and scheduling. Once everything is in order, the build moves from paperwork to construction.
What Can Delay Construction After Signing?
| Potential Delay | Why It Happens | How to Reduce the Risk |
| Finance delays | Bank needs additional documentation | Keep your broker and builder updated |
| Selection delays | Products not chosen or unavailable | Finalise key selections as early as possible |
| Approval delays | Council or certifier requests changes | Respond quickly to documentation requests |
| Variations | Scope changes after signing | Lock in details before the building contract is signed |
| Site issues | Soil results, slope or access require changes | Complete site investigations early |
| Service connections | Power, water or sewer not yet available | Raise early with builder and relevant authorities |
| Product availability | Supply delays on specified products | Confirm lead times during the selection stage |
What Your Signed Contract Should Include
For residential building work over $20,000 in New South Wales, a home building contract must be in writing and must include the contract price, a detailed description of the building work, plans and specifications, a progress payment schedule, start date and finish date, Home Building Compensation insurance details, and statutory warranties.
Under the Home Building Act, statutory warranties are implied into all residential building contracts by law, regardless of what the written contract says. For major defects affecting structural integrity or key building systems, the warranty period is 6 years from practical completion. For all other defects, it is two years. These protections exist alongside any workmanship guarantee your builder offers.
A well-prepared building contract will also include a liquidated damages clause. This sets out a predetermined daily amount payable if the builder fails to complete the building work by the agreed finish date, covering losses such as ongoing rent or temporary accommodation costs. It is worth checking that this clause is present before you sign.
You need to ensure you keep copies of everything, including the contract, your plans, specifications, inclusions list, any special conditions, selection documentation and your finance paperwork. If anything in the written contract doesn’t match what was agreed earlier, raise it before the cooling-off period ends. And if you are unsure about any clause, seek legal advice before the period lapses.
Your Post-Contract Checklist
- Save digital copies of your contract, plans, specifications and inclusions list
- Confirm finance approval and understand your loan drawdown process
- Check that your HBC insurance certificate has been provided before paying any deposit
- Finalise any outstanding colour, fixture and electrical selections
- Know who your main contact is during the build
- Stay responsive to requests from your builder, bank, broker or certifier
- Ask for clarification early if something is unclear
Can You Make Changes After Signing?
Yes, but changes after signing are handled as formal variations to the building contract. In NSW, variations must be in writing and signed by both parties. The variation should clearly state the change, any adjustment to the contract price, and any impact on the finish date.
Some variations are easy, like switching a tap fitting or changing a tile colour, which can usually be processed quickly. Structural changes or changes that affect approvals take longer and can add cost.
The practical advice is to finalise as much as possible before signing. The further into the build a change is requested, the more disruptive it tends to be. Whether you are building a new home, renovating, or doing a knock-down rebuild, the same principle applies: the earlier decisions are locked in, the fewer variations arise mid-build.
Can You Get Out of a Building Contract?
Outside the cooling-off period, terminating a residential building contract is a serious step. Termination clauses in a building contract set out the limited circumstances under which either party may terminate the agreement, the written notice required, and what each party is owed for completed work.
Termination may occur by mutual agreement, for breach of essential requirements, or in other situations specified in the contract. If you find yourself considering it, seek legal advice before taking any action. Acting without first getting legal advice can expose you to claims for damages from the other party. If a dispute arises, having a lawyer review the contract before you act can make a significant difference to the outcome.
The cooling-off period is the right time to reconsider. After that, both you and the builder are committed to the agreement.
What the Builder Handles vs What the Homeowner Handles
| Stage | Builder Handles | Homeowner Handles |
| Post-signing | Contract documentation, HBC insurance certificate | Review contract, confirm finance |
| Finance | Builder documentation for the lender | Formal loan approval, drawdown setup |
| Approvals | CDC or DA lodgement, Construction Certificate, BASIX | Respond promptly to requests, sign documents |
| Selections | Appointment scheduling with suppliers | Attend appointments, confirm all selections |
| Site and engineering | Soil testing, surveying, and engineering design | Site access if required |
| Pre-construction meeting | Scheduling and agenda | Attend, ask questions, confirm understanding |
| Site start | Trade scheduling, ordering, and site preparation | Arrange access, demolition or clearing if applicable |
How Vision Homes Helps You Move From Contract to Construction
Vision Homes has been building new homes in the Hunter Valley and Newcastle region since 2008. That local experience matters during the post-contract phase, because the path from signing to site start in this region comes with its own considerations. Estate guidelines in newer releases like Cameron Park and Thornton, slope and services in established suburbs around Lake Macquarie, and approval requirements across different council areas are all things an experienced local builder will already know how to navigate.
The team works with local trades and suppliers, which helps with scheduling and keeps each build connected to the community it’s part of. Plans are customisable, and whether you are building from an existing design or bringing your own, the process is the same: clear communication, no hidden costs, and a team that’s with you from contract through to handover.
If you are building in Newcastle, Maitland, Cessnock, Lake Macquarie, Port Stephens or the broader Hunter Valley, contact the Vision Homes team or explore the range of home designs on our website.
Frequently Asked Questions
How long after signing a building contract does construction start?
It depends on your site, finance, approvals and selections. Some builds are on-site within a few months of signing; others take longer. Your builder should give you a clearer timeline once the key steps are underway.
Do I have to pay a deposit after signing a building contract?
In NSW, the maximum deposit under the Home Building Act is 10 per cent of the contract price. For residential building work over $20,000, your builder must provide a valid HBC insurance certificate before requesting any payment.
Can I make changes after signing a building contract?
Yes, but changes are handled as formal variations. In NSW, these must be in writing and signed by both parties, and can affect the contract price and finish date.
What does the builder do after the contract is signed?
The builder manages insurance, approvals, engineering, material ordering, trade scheduling and the pre-construction meeting, coordinating everything needed to get the build ready for site start.
What should I do after signing my building contract?
Confirm finance approval, check your HBC certificate has been issued, lock in outstanding selections, and stay responsive to requests from your builder, bank or certifier.
Is a pre-construction meeting the same as signing the contract?
No. The pre-construction meeting happens after signing and after approvals are in place, but before site start. It is where final details are confirmed before the build begins.