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The importance of Preliminary Agreements

April 14, 2019

A valid Preliminary Agreement allows you to charge for the costs associated with obtaining information, developing working drawings and the necessary application fees to enable a building contract to be signed. This contract acts as a stand-alone contract so the owner will be obliged to pay you the agreed price for this work.

If you decide to proceed with a building contract, you can offer a credit from the contract price for any amount paid under the preliminary agreement to entice the client to appoint you as their builder.

View the HIA Preliminary Agreement on Contracts Online.

Should you require further information, please call Kiran Kaur, HIA Workplace Adviser on 9494 9200 or email WA_IR&Legal@hia.com.au.