House & Land Packages:
What You Need to Know Before You Sign
House and land packages are often sold as simple, fixed-price, low-stress solutions — especially for first-time buyers.
In reality, they’re rarely as straightforward as they appear.
Some house and land packages involve two separate contracts, multiple allowances, strict timing conditions and clauses that can shift cost and risk back onto the buyer after you’ve already committed.
This page explains how house and land packages really work, what buyers commonly misunderstand, and what to check before you sign anything.
What is a house and land package?
A house and land package usually combines:
A contract to purchase land (often from a developer), and
A separate contract to build a home (with a builder)
Even when marketed as a “package”, these are not always linked in your favour. Each contract has its own conditions, timelines and risks, and problems in one don’t automatically protect you in the other.
Two contracts, two sets of risks
One of the most common surprises for buyers is realising that:
The land contract may settle before the build contract is finalised
The build contract may rely on finance, soil tests or approvals that occur later
Delays in land registration don’t always pause build obligations
If timing, approvals or pricing shift, buyers can find themselves committed with very limited options to renegotiate or exit.
What’s usually included (and what often isn’t)
Marketing material often highlights a “fixed price”, but that price commonly relies on Provisional Sums and Prime Cost allowances.
These allowances can include:
Site works
Footings
Retaining
Stormwater
Electrical and upgrades
If actual costs exceed the allowance, the difference is typically payable by the buyer.
Understanding how much exposure sits inside these allowances is critical before signing.
two contracts or one ?
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"fixed price" isn't always fixed
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allowances and timing matter more than the brochure
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two contracts or one ? ✳︎ "fixed price" isn't always fixed ✳︎ allowances and timing matter more than the brochure ✳︎
Delays, extensions of time and liquidated damages
Most build contracts allow the builder to claim extensions of time (EOTs) for a wide range of events — some reasonable, some less so.
Buyers often don’t realise:
How easily EOTs can be triggered
How limited their ability is to challenge them
How liquidated damages are structured (and when they actually apply)
These clauses directly affect how long your build may take and what recourse you have if it runs late.
Why “fixed price” doesn’t always mean fixed
A fixed-price contract is only fixed within the boundaries of the contract terms.
Escalation clauses, cost adjustment provisions, variations and provisional sums can all change the final price — sometimes significantly — after signing.
This is why understanding the detail matters far more than the headline number.
Why buyers choose an independent contract review
Many buyers seek an independent review not because something feels “wrong”, but because once you sign, your negotiating power changes.
An independent review can help you:
Understand how the land and build contracts interact
Identify cost and timing risks before you’re locked in
Clarify allowances, exclusions and adjustment clauses
Make informed decisions with eyes open
How we can help
We provide independent reviews of land and building contracts — explaining what matters, what’s standard, and what may carry risk in plain English.
If you’re considering a house and land package and want clarity before you commit, you can book an Intermediate Review – Build, which includes:
Review of the overall house & land package structure
Explanation of how the land and build contracts interact
Overview of deposit requirements across both contracts
Clarification of when deposits may (and may not) be refundable
Identification of provisional sums and allowances
Timing, settlement and approval risk overview
Plain-English summary of key considerations
20-minute follow-up call to answer questions
CLICK HERE to go to the House and Land Review
Final note
House and land packages aren’t inherently bad — but they’re rarely as simple as the brochures suggest.
Understanding the structure before you sign can save stress, cost and difficult conversations later.
If you’re unsure where you stand, getting advice early is often the easiest step.
Get In Touch
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