The terms ‘fixed price’ and ‘cost plus’ refer to the method by which the cost of the construction is determined.
A fixed price contract, also known as a ‘lump sum’ contract, is a contract in which the borrower and the builder agree on a set price for the construction of the home. The builder takes on the risk if costs of materials rise beyond the costs estimated when providing the tender to the borrower for acceptance.
Borrowers should read their building contracts carefully and ensure that they are vetted by a solicitor if there is anything that is not understood before signing.
Not all banks will consider finance for a “cost plus” contract due to the variable nature of the construction costs.
We acknowledge the Traditional Owners of the lands on which we operate and pay our respects to Elders past and present, and to emerging community leaders. We also acknowledge the important role Aboriginal and Torres Strait Islander peoples continue to play within the communities in which Qudos Bank operates and where our team members reside.
