Ep. 208 - Understanding Building Contracts

When it comes to property development, understanding building contracts isn’t optional—it’s essential. From fixed price and cost-plus to guaranteed maximum price and design-and-construct models, knowing your contract structure can protect your bottom line and help you build with confidence. In this episode, inspired by a listener question from Cam, Bob and Hilary take a deep dive into how different contracts work, what to watch out for, and how to ensure value for money when there’s no competitive tension. They also share a few real-world lessons from their current projects—including a surprising mistake from a long-time quantity surveyor. Links Attend the 3 Day Workshop on the Gold Coast: https://bit.ly/3UmDhjo  Chat to Hilary about the current investment opportunity we have: https://link.propertymastermind.com.au/book-a-call Join the Ultra-Urban Database for upcoming investment opportunities: https://bit.ly/45sqO2F Head on over to our website to find out more about our workshop and education options: Our Website Connect with handovers.com: https://handovers.com/ Episode Highlights 00:00 – Introduction02:00 – Listener email: Cam’s real-world development situation in South Australia04:30 – Bob and Hilary’s current contract challenges and quantity surveyor misstep06:45 – Lessons learned: when to rely on QS vs tender pricing10:00 – Overview of contract types: Fixed Price, Cost-Plus, GMP11:15 – Why financiers love fixed price and time contracts13:00 – Cost-Plus contracts: what they are and why builders like them15:20 – Guaranteed Maximum Price (GMP): benefits and savings share models17:30 – Design and Construct (D&C) contracts explained21:00 – How D&C improves buildability and controls costs22:30 – The tender process and when to use it24:00 – Advice for Cam: how to ensure value for money without tendering27:00 – Residential vs commercial builder mindset31:00 – New industrial and childcare/townhouse projects on the horizon 🏠🏠🏠 Check out all the episodes - https://bit.ly/3ZDe2fZ  🔑 Exclusive Property Mastermind Mentoring - https://bit.ly/4ieAu6B 🔑 Property Mastermind Courses: 👉 Getting Started in Property Development - https://bit.ly/4iwTI7E👉 The Ultimate Property Development Bundle - https://bit.ly/3OH4VVy  Property Mastermind Events: 👉 The 3-Day Live Workshop - https://bit.ly/3ZnBe0j👉 Full Event Schedule - https://bit.ly/4g0inzD  Connect with us: 👉 Property Developer Secrets & Hacks on Facebook - https://bit.ly/49r6kJo👉 Facebook Page - https://bit.ly/3D2eH1S👉 Instagram - https://bit.ly/3D1a7AP👉 YouTube - https://bit.ly/3Vp4ToG  🏠🏠🏠See omnystudio.com/listener for privacy information.