What is a Fixed price contract in a South Australian building contract?

A contract where the total price is agreed at the time of signing and the builder carries the risk of most cost movements between signing and completion. Fixed price contracts typically still contain provisional sums and prime cost items for elements that could not be fully specified at signing.

What is a Cost plus contract in a South Australian building contract?

A contract where the homeowner pays the actual cost of labour, materials, and sub-contractors, plus an agreed margin for the builder. The homeowner carries most of the cost movement risk. Cost plus is generally used for highly custom, heritage, or renovation projects where the scope cannot be pinned down in advance.

What is a HIA contract in a South Australian building contract?

A standard-form residential building contract published by the Housing Industry Association (HIA) and widely used across Australia. Different templates exist for different project types (new build, renovation, cost plus, small works).

What is a Master Builders SA contract in a South Australian building contract?

A standard-form residential building contract published by Master Builders SA. Also widely used in South Australia, with a similar range of templates covering new builds, renovations, and cost plus arrangements.

What is a Design and construct contract in a South Australian building contract?

A contract where the same party is responsible for both the design and the construction. Common with volume and project home builders who provide plans as part of their fixed price. Contrast with a separate architect + builder arrangement.

What is a Provisional sum in a South Australian building contract?

An allowance included in the contract price for work or materials that could not be fully priced at signing. If the actual cost is higher or lower than the provisional sum, the price is adjusted at that point in the build.

What is a Prime cost item in a South Australian building contract?

An allowance for specific fixtures or fittings (for example tapware, tiles, appliances) that the homeowner has not yet selected at signing. The homeowner pays the difference if they later choose an item above the allowance.

What is a Progress payment in a South Australian building contract?

A partial payment made by the homeowner to the builder at defined stages of the build (for example deposit, slab, frame, lock-up, fixing, practical completion). Progress payment stages and percentages are set out in the contract.

What is a Variation in a South Australian building contract?

A written agreement to change the contract scope or specification after signing. Variations should be documented in writing, priced, and signed by both parties before the work is done.

What is a Retention in a South Australian building contract?

An amount held back from the final progress payment for a defined period after practical completion, to cover any defects that emerge in that window. Retention is a contractual mechanism and its use varies by contract.

What is a Liquidated damages in a South Australian building contract?

A pre-agreed rate of compensation payable if the build is not completed by the agreed date, subject to any extensions of time granted under the contract.

What is a Commencement date in a South Australian building contract?

The date on which the builder starts on-site work, as defined in the contract. Different from the contract signing date.

What is a Practical completion in a South Australian building contract?

The point at which the build is complete except for minor defects or omissions that do not prevent the home from being used for its intended purpose. Handover typically follows shortly after practical completion.

What is a Extension of time (EOT) in a South Australian building contract?

A formal written extension to the completion date, usually granted under specific circumstances defined in the contract (for example inclement weather, variations, or events outside the builder's control).

What is a Defect liability period in a South Australian building contract?

A defined period after handover during which the builder remains responsible for rectifying defects notified to them in writing. The length of this period is set out in the contract.

What is a Building Indemnity Insurance (BII) in a South Australian building contract?

A statutory insurance product in South Australia that provides cover to the homeowner in the event that the builder cannot complete the build or rectify defects because of death, disappearance, or insolvency. Requirements are administered by Consumer and Business Services SA.

What is a Public liability insurance in a South Australian building contract?

Insurance held by the builder that covers injury to third parties or property damage during the course of the build.

What is a Structural warranty in a South Australian building contract?

A period during which the builder remains responsible for defects affecting the structural integrity of the home. The applicable period is defined by legislation and by the contract.

What is a Non-structural warranty in a South Australian building contract?

A shorter period during which the builder remains responsible for defects that are not structural. Duration is defined by legislation and by the contract.

What is a Force majeure in a South Australian building contract?

A clause that allocates responsibility for events outside either party's reasonable control (for example natural disaster, pandemic, government intervention).

What is a Notice of dispute in a South Australian building contract?

A written notice from one party to the other formally identifying a disagreement under the contract. Most contracts require this as a first step before any escalation.

What is a Mediation in a South Australian building contract?

A voluntary process where an independent mediator helps the parties reach a negotiated agreement. Non-binding unless the parties sign a settlement deed.

What is a SACAT (South Australian Civil and Administrative Tribunal) in a South Australian building contract?

The independent tribunal that hears residential building disputes in South Australia. Filing fees and jurisdiction limits are published on the SACAT website.

What is a Statutory cooling-off period in a South Australian building contract?

A short defined period after signing during which the homeowner may withdraw from certain contract types without penalty. The specific period and eligible contract types are set out in South Australian legislation. Confirm the current position with an SA-licensed conveyancer.

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Adelaide building guide

Building Contracts in Adelaide: A Plain-English Glossary

A neutral, definition-only reference to the terms you will encounter in a South Australian residential building contract. Read this alongside your contract, then take specific questions to an SA-licensed conveyancer or building lawyer.

Last reviewed: 18 July 2026·Independent editorial

In this glossary

1. Types of residential building contract
2. Money and pricing terms
3. Time and completion terms
4. Insurance, warranty and risk terms
5. Dispute resolution terms

Glossary section

1. Types of residential building contract

The two contract structures you will most commonly see in South Australia are fixed price and cost plus. Each allocates cost risk differently between the homeowner and the builder. Neither is universally "better" and neither is universally "worse". The right structure depends on your project, your risk appetite, and the level of design certainty at contract signing. Discuss both with an SA-licensed conveyancer or building lawyer before signing.

Fixed price contract
Cost plus contract
HIA contract
Master Builders SA contract
Design and construct contract

Glossary section

2. Money and pricing terms

Most disputes between homeowners and builders originate in the way money is described and released. Understanding the following terms before you sign is helpful, though it is not a substitute for advice from an SA-licensed conveyancer or building lawyer who can review your specific contract.

Provisional sum
Prime cost item
Progress payment
Variation
Retention
Liquidated damages

Glossary section

3. Time and completion terms

Australian residential building contracts use specific defined terms to describe timeframes. Actual timelines vary significantly by project, site, council, and market conditions. This section defines the terms only.

Commencement date
Practical completion
Extension of time (EOT)
Defect liability period

Glossary section

4. Insurance, warranty and risk terms

The terms below appear frequently in SA residential building contracts. This section defines them in neutral, factual language. Specific coverage amounts, durations, and thresholds are set by legislation, insurers, and the contract itself, and change over time. Confirm current details with Consumer and Business Services SA and, for insurance specifics, with a licensed insurance broker.

Building Indemnity Insurance (BII)
Public liability insurance
Structural warranty
Non-structural warranty
Force majeure

Glossary section

5. Dispute resolution terms

If a disagreement arises during or after the build, most SA contracts require the parties to work through a defined process before formal proceedings. The following terms are commonly encountered.

Notice of dispute
Mediation
SACAT (South Australian Civil and Administrative Tribunal)
Statutory cooling-off period

Get qualified advice

Who to speak to before signing a building contract

A residential building contract is a legal document. Regardless of which builder or contract template you use, engaging a qualified professional to review the contract before signing is a straightforward step you can take. The following authorities help you find the right person for your circumstances.

Find an SA-licensed conveyancer

Australian Institute of Conveyancers (SA)

Find an SA building or property lawyer

Law Society of South Australia

Check a builder's licence

Consumer and Business Services SA

Consumer information on SA building

SA.gov.au: Building and Renovating

Trusted sources

Trusted sources for SA building contracts

This glossary is general information only, drawn from public authority sources. Rules, thresholds, and contract templates change over time. Always verify current details directly with the relevant authority, and engage a qualified SA-licensed conveyancer or building lawyer to review your specific contract before signing.

Consumer and Business Services SA

Building contracts, licensing, BII, dispute framework

SA Civil and Administrative Tribunal

Residential building disputes in SA, filing information

Law Society of South Australia

Find an SA-licensed building or property lawyer

Australian Institute of Conveyancers (SA)

Find an SA-licensed conveyancer

SA.gov.au: Building and Renovating

Consumer information on the SA building framework

Housing Industry Association (HIA)

Publisher of the HIA standard-form residential contracts

Important: General glossary of contract terminology used in South Australian residential building work. Every contract is different; it is always worth having a qualified SA-licensed conveyancer or building lawyer review your specific contract before signing. Contract terms and statutory requirements change over time; verify current details with the relevant authority.

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Building Contracts in Adelaide: A Plain-English Glossary

Building Contracts in Adelaide: A Plain-English Glossary

1. Types of residential building contract

2. Money and pricing terms

3. Time and completion terms

4. Insurance, warranty and risk terms

5. Dispute resolution terms

Who to speak to before signing a building contract

Find an SA-licensed conveyancer

Find an SA building or property lawyer

Check a builder's licence

Consumer information on SA building

Trusted sources for SA building contracts

Related questions our members ask

Related Adelaide building guides

Choosing a home builder in Adelaide

Build vs buy in Adelaide

Council approvals in Adelaide

Understanding Adelaide build costs