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 – Introduction
02:00 – Listener email: Cam’s real-world development situation in South Australia
04:30 – Bob and Hilary’s current contract challenges and quantity surveyor misstep
06:45 – Lessons learned: when to rely on QS vs tender pricing
10:00 – Overview of contract types: Fixed Price, Cost-Plus, GMP
11:15 – Why financiers love fixed price and time contracts
13:00 – Cost-Plus contracts: what they are and why builders like them
15:20 – Guaranteed Maximum Price (GMP): benefits and savings share models
17:30 – Design and Construct (D&C) contracts explained
21:00 – How D&C improves buildability and controls costs
22:30 – The tender process and when to use it
24:00 – Advice for Cam: how to ensure value for money without tendering
27:00 – Residential vs commercial builder mindset
31:00 – New industrial and childcare/townhouse projects on the horizon

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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 

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When it comes to property development, understanding building contracts isn&rsquo;t optional&mdash;it&rsquo;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&rsquo;s no competitive tension. They also share a few real-world lessons from their current projects&mdash;including a surprising mistake from a long-time quantity surveyor. 
Links
<ul>
<li data-start="333" data-end="613">Attend the 3 Day Workshop on the Gold Coast: <a href="https://bit.ly/3UmDhjo">https://bit.ly/3UmDhjo</a>&nbsp;<a href="https://bit.ly/3UmDhjo"></a></li>
<li data-start="333" data-end="613">Chat to Hilary about the current investment opportunity we have:&nbsp;<a href="https://link.propertymastermind.com.au/book-a-call">https://link.propertymastermind.com.au/book-a-call</a></li>
<li data-start="333" data-end="613">Join the Ultra-Urban Database for upcoming investment opportunities: <a href="https://bit.ly/45sqO2F">https://bit.ly/45sqO2F</a></li>
<li data-start="333" data-end="613">Head on over to our website to find out more about our workshop and education options: <a href="https://www.propertymastermind.com.au/">Our Website</a></li>
<li data-start="333" data-end="613">Connect with handovers.com: <a href="https://handovers.com/">https://handovers.com/</a></li>
</ul>
Episode Highlights
00:00 &ndash; Introduction 02:00 &ndash; Listener email: Cam&rsquo;s real-world development situation in South Australia 04:30 &ndash; Bob and Hilary&rsquo;s current contract challenges and quantity surveyor misstep 06:45 &ndash; Lessons learned: when to rely on QS vs tender pricing 10:00 &ndash; Overview of contract types: Fixed Price, Cost-Plus, GMP 11:15 &ndash; Why financiers love fixed price and time contracts 13:00 &ndash; Cost-Plus contracts: what they are and why builders like them 15:20 &ndash; Guaranteed Maximum Price (GMP): benefits and savings share models 17:30 &ndash; Design and Construct (D&amp;C) contracts explained 21:00 &ndash; How D&amp;C improves buildability and controls costs 22:30 &ndash; The tender process and when to use it 24:00 &ndash; Advice for Cam: how to ensure value for money without tendering 27:00 &ndash; Residential vs commercial builder mindset 31:00 &ndash; New industrial and childcare/townhouse projects on the horizon
🏠🏠🏠
Check out all the episodes -<a href="https://bit.ly/3ZDe2fZ"> https://bit.ly/3ZDe2fZ</a>&nbsp;
🔑 Exclusive Property Mastermind Mentoring -<a href="https://bit.ly/4ieAu6B"> https://bit.ly/4ieAu6B</a> 🔑
Property Mastermind Courses:
👉 Getting Started in Property Development -<a href="https://bit.ly/4iwTI7E"> https://bit.ly/4iwTI7E </a>👉 The Ultimate Property Development Bundle -<a href="https://bit.ly/3OH4VVy"> https://bit.ly/3OH4VVy</a>&nbsp;
Property Mastermind Events:
👉 The 3-Day Live Workshop -<a href="https://bit.ly/3ZnBe0j"> https://bit.ly/3ZnBe0j </a>👉 Full Event Schedule -<a href="https://bit.ly/4g0inzD"> https://bit.ly/4g0inzD</a>&nbsp;
Connect with us:
👉 Property Developer Secrets &amp; Hacks on Facebook -<a href="https://bit.ly/49r6kJo"> https://bit.ly/49r6kJo </a>👉 Facebook Page -<a href="https://bit.ly/3D2eH1S"> https://bit.ly/3D2eH1S </a>👉 Instagram -<a href="https://bit.ly/3D1a7AP"> https://bit.ly/3D1a7AP </a>👉 YouTube -<a href="https://bit.ly/3Vp4ToG"> https://bit.ly/3Vp4ToG</a>&nbsp;
🏠🏠🏠

Want to sky-rocket your property development career? Bob Andersen & Hilary Saxton are here to add value to your property journey, whether it be through high-quality education, guidance, and accountability. Stay tuned for weekly episodes!

Want to sky-rocket your property development career? Bob Andersen &amp; Hilary Saxton are here to add value to your property journey, whether it be through high-quality education, guidance, and accountability. Stay tuned for weekly episodes!

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