How long your base price REALLY is protected for?

23th June 2025

Finance & Budgeting Pre-Construction Legal & Contracts

Confused about how long your base price is actually locked in when building a new home? In this episode, Colin and Darren break down base price protection periods, contingency fees, and what you need to know to avoid unexpected costs. Don’t sign a contract without hearing this first!

Understanding how long your base price is locked in when building a new home can help you avoid thousands in unexpected costs. In this episode of The Home Building Hub podcast, Colin Bischof and Darren Brennan break down what “base price protection” really means, when contingency fees apply, and how you can safeguard your budget in today’s evolving construction market.

Let’s explore how long your base price actually lasts and what you need to know to avoid nasty surprises.

What Is a Base Price?

Before we dive into protection periods, let’s clarify what a base price is:

• It’s the starting cost of your home, based on the standard floor plan and base inclusions.

• It covers basic materials and labour, calculated using detailed quantities like bricks, tiles, plumbing, and more.

• It does not include:

• • Site costs (related to your specific block of land)

  • State-specific building requirements

  • Any upgrades or customisations

So while it’s a helpful baseline, your final home price is usually higher.

What Is a Price Lock or Price Protection Period?

The price protection period is the amount of time your builder will honour your base price before applying increases. This period:

• Starts from your deposit or contract signing

• Usually lasts 12 months, but can range from 4 to up to 24 months with some builders

• Covers your home price up until site start (the beginning of construction)

💡 If your land is already titled, you're likely to start building sooner and stay within the protected period. But if your land won’t be titled for 12+ months, it gets more complicated.

What Happens When You Go Over the Protected Period?

If your construction start date falls outside the price lock, you’ll likely face contingency fees.

Here’s how contingency works:

• Builders add a monthly fee if construction starts after the protected period

• Common methods include:

• • Flat rate of $1,000/month

  • A percentage of your base price (e.g. 0.5% - 0.75% per month)

• These fees cover potential material and labour price increases

Example:

Faith signed with her builder in June 2025. Her land won’t title until June 2026. But her home won’t likely start until August 2026.

Her base price is protected for 12 months. Site start occurs in month 14. She needs to pay for 2 months of contingency at $1,000/month = $2,000 added to her quote.

Why You Should Budget a Buffer

Land title delays are common, and even the best developers can face red tape. Builders typically:

• Honour the base price for up to 12 months

• Apply agreed contingency costs up to 18 - 24 months

• Beyond that, you'll pay the current base price at the time (which may be $5K to $25K more)

Key tip:

Add a buffer of at least 2 - 3 months to your contingency plan to avoid surprises. If you don’t end up using it, ask your builder how refunds are handled.

Key Takeaways

• Base price includes standard plans and inclusions but not site costs or upgrades

• Price lock periods usually last 12 months from deposit or contract signing

• Contingency fees apply if you start building after that period

• These fees are usually a flat monthly fee or a percentage of your base price

• If building is delayed beyond 18 - 24 months, expect to pay the new base price

• Talk to your builder early and plan a buffer to stay on top of costs

Glossary of Terms

Base Price The starting cost of your home, covering standard plans and inclusions.

Price Lock / Protection Period The timeframe where your base price is fixed and shielded from increases.

Contingency An additional cost charged monthly after the protection period ends, to cover potential cost rises.

Titled Land Land that is legally registered and ready for construction.

Site Start The actual beginning of construction on your block.

Frequently Asked Questions (FAQs)

Q: Can my builder increase prices during the protection period? A: No. If you're within the agreed protection period, your base price is locked in.

Q: Can contingency fees be refunded if we start earlier? A: Some builders may refund unused contingency. Always confirm their policy up front.

Q: What if land title is delayed more than expected? A: You may move past the contingency window. Builders typically then charge the current day price.

Q: How do I know how long my base price is protected? A: Ask your builder directly and get it in writing in your quote or contract.

Listen to the Full Episode

🎧 Episode 103: How long your base price REALLY is protected for? Click here to watch or listen

About the Home Building Hub Podcast

The Home Building Hub podcast, hosted by industry experts Colin Bischof and Darren Brennan, is Australia’s premier resource for new home buyers. With weekly episodes featuring special guests, the podcast provides objective, high-quality insights into the home building process - completely free and without sales pitches. From understanding financing options to navigating the complexities of building a new home, each episode is packed with actionable advice and tips. Explore more episodes at www.homebuildinghub.com.au and join our growing community of informed home buyers.

Disclaimer

Whilst we’re all about providing value to you, this article should not be considered as legal or financial advice. It contains general information only and is based on the content discussed during the podcast episode. This information is relevant to the episode’s release date and may not be applicable at the time of reading. Always seek independent professional advice tailored to your personal situation before making any legal or financial decisions.