Custom homes FAQ
Building a custom home in Sydney raises questions about contracts, insurance, certificates and what happens at handover. These answers are checked against current NSW rules and published sources, then dated so you can see when each was last reviewed.
Your questions
Do I need an independent building inspector if I have a certifier?
NSW law does not require an independent building inspector for a new house, although one can check the work against your contract before each payment.
Fixed price or cost plus: which building contract suits a custom home?
A fixed price contract sets the sum before building starts, while cost plus passes on actual costs plus a margin, so the right choice depends on how complete the design is.
How long is a builder responsible for defects in NSW?
NSW statutory warranties hold a builder responsible for major defects for six years and other defects for two, beyond the contract's defects liability period.
Is home warranty insurance compulsory in NSW?
Home warranty insurance, now Home Building Compensation cover, is compulsory for most NSW building work over $20,000 and pays out when the builder cannot finish or fix it.
What does practical completion mean in a building contract?
Practical completion is the point at which a building contract treats a new home as finished, which starts the warranty periods and leads to handover after a final inspection.
What is an occupation certificate in NSW?
An occupation certificate lets you move into a new home in NSW. Your principal certifier issues it once the house matches its approval and is suitable to live in.
What is the most expensive part of building a house?
The structure is usually the largest share of building a new home in Sydney, although premium finishes and a steep or rocky block can narrow the gap.
When does a new home need a BASIX certificate?
Every new home in NSW needs a BASIX certificate lodged with its DA or CDC, setting the water, energy and thermal commitments the house must meet before occupation.
