Home » The Importance of Valid Price Increase Clauses in Property Contracts

Written by: Eloise Turnbull

Has your build contract price gone up?

The recent decision on 12 June 2023 of Perera v Bold Properties (QLD) Pty Ltd [2023] QDC 9 (“Perera v Bold Properties”) reinforced the duty of care owed by property developers to purchasers and the need to be transparent with disclosing increases in their contract prices.

In an era marked by the COVID-19 pandemic, price escalation clauses have become increasingly prevalent due to the rising costs of materials and labour. These provisions must be carefully drafted to be valid and enforceable. Incorporating statutory warnings in the contract is also advisable to provide additional protection for all parties involved.

The Perera v Bold Properties case resulted in the declaration of the relevant price escalation clause as void and unenforceable, ultimately preventing an increase in the contract price. This ruling serves as a reminder that developers and builders must exercise caution when including such clauses in their contracts. By doing so, they can uphold their duty of care and maintain transparency with purchasers.

It is crucial for both builders and homebuyers to have a comprehensive understanding of their rights and obligations under their respective build contracts and relevant laws. Seeking professional assistance to review your contract can provide valuable insights and ensure compliance with legal requirements.

See our integrated-services team to understand the enforceability of your build contract provisions. Our Litigation & Commercial Law Solicitors work collaboratively and efficiently, towards achieving the best possible outcome for our clients.


The information contained in this article is for general informational purposes only and is not intended to provide legal advice or substitute for the advice of a professional. This information does not consider your personal circumstances and may not reflect the most current legal developments. Should you need advice, please contact our firm for targeted information relating to personal your situation.