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.

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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