If you’re a builder or property developer in Canberra, you already know the stakes are high. Tight margins, tight timeframes, and layers of compliance can turn a profitable project into a financial headache if things go wrong.
At our firm, we’ve worked alongside builders and developers across the ACT and NSW for years — and while no two projects are the same, there are some common themes that come up again and again. Legal missteps are rarely just about fine print. They’re about cash flow, client relationships, and reputation.
Here are eight of the biggest lessons we’ve learned helping Canberra’s builders and developers — and why they matter to your business.
1. The contract is everything — and it’s often not read properly.
We know: building contracts aren’t exactly thrilling reading. But we can’t count the number of disputes we’ve seen that boil down to someone not understanding their contract. That includes clauses around variations, delays, payments, and defects liability.
Pro tip: Don’t rely solely on the HIA or MBA standard form contracts. They’re good — but not perfect. Get them reviewed and tailored to the specifics of your project and risk profile.
2. Variations are the number-one dispute trigger — and it’s avoidable.
Extra costs. Changes in materials. Design tweaks. They’re part of building. But if they’re not handled correctly — in writing, with proper approval, and according to contract terms — you’re leaving yourself wide open.
One variation done on good faith might seem fine — until the client disputes it, and you’re chasing thousands you assumed were a given.
Pro tip: Build a rock-solid variations process into your project management. Make it standard practice, not an exception.
3. Developers must be proactive about planning and zoning — not reactive.
Planning approvals and zoning rules in Canberra can feel like a moving target. Delays in approvals, heritage overlays, or changes to Territory Plan requirements can derail timelines and budgets.
We’ve helped developers who only discovered these issues after significant investment — at which point the options become limited and expensive.
Pro tip: Get legal input during your feasibility stage. A 30-minute conversation upfront can save six months of regulatory delays.
4. Subcontractor agreements need to be more than verbal “handshakes.”
It’s still surprisingly common: a builder brings on subcontractors with nothing more than an email or a phone call. That might work for a while — until there’s a payment dispute, injury on site, or quality issue.
A proper subcontractor agreement doesn’t just protect you — it protects the timeline, budget, and build quality.
Pro tip: Create a subcontractor contract template that you use as standard, with project-specific amendments as needed.
5. Personal guarantees can come back to bite — know what you’re signing.
Developers often sign personal guarantees when dealing with lenders, suppliers, or even large head contractors. These can feel like just another box to tick — until a project hits trouble and your personal assets are on the line.
We’ve seen founders risk their homes and savings without realising what they signed up for.
Pro tip: Always seek legal advice before signing a personal guarantee. Always. Full stop.
6. Time is money — and delay damages are real.
Contracts often include liquidated damages clauses — penalties for late completion. Many builders don’t realise how quickly these can add up, especially when the delay isn’t fully within their control (think weather, suppliers, or client indecision).
On the flip side, developers should understand when they can enforce delay clauses — and when it’s smarter to negotiate.
Pro tip: Make sure the contract fairly allocates risk and clearly defines extension-of-time procedures.
7. Early legal intervention beats last-minute firefighting.
We’ve had clients call us the night before court hearings, trying to salvage a payment dispute or resolve a building defect claim. By then, your options are limited — and the stress is at its peak.
The most successful builders and developers we work with don’t just call a lawyer when something goes wrong. They bring us in to prevent things from going wrong in the first place.
Pro tip: Have a construction lawyer on your advisory list — not just your accountant or architect.
8. Compliance isn’t just a box to tick — it’s a shield.
From QBCC licensing to ACT WorkSafe safety requirements, compliance in construction is serious business. Non-compliance can result in fines, loss of licence, and major project delays.
We’ve seen businesses lose tenders — or be disqualified mid-project — due to a single overlooked requirement.
Pro tip: Run an annual legal health check across your operations: licences, insurances, contract templates, and dispute resolution policies.
Bonus Lesson: Canberra is a small town. Reputation matters.
Word travels fast in this city — especially in the property and construction space. A legal misstep, delayed payment, or unresolved defect dispute can follow you to the next tender or DA.
We’ve helped clients not just fix legal problems, but protect their professional reputations. And that’s worth its weight in bricks.
Pro tip: Think long-term. Avoid shortcuts. Work with partners who value transparency and clarity as much as you do.
In Summary: Legal Smarts Build Stronger Projects
Here’s a quick recap of the eight lessons Canberra builders and developers can’t afford to ignore:
- Read (and tailor) your contracts
- Document all variations
- Plan for planning approvals
- Formalise subcontractor agreements
- Watch for personal guarantees
- Manage delay risks
- Involve your lawyer early
- Take compliance seriously
These aren’t just legal tips — they’re business strategies. Because in construction, the best foundation isn’t just concrete. It’s clarity.
