BUILDING CONTRACT - WHAT'S PPA EXACTLY?
PPA is also commonly known as the Plan Preparation Agreement or Preparation of Plan Agreement. PPA in Australia is an early stage agreement between you and the builder. It is an agreement where the client gives permission for the builder to start preparing all of the necessary drawings and documents for the council or authority approval. Such as site survey, soil report, working drawings, and et cetera.
With PPA there is usually a small fee that you will need to pay, which is commonly transferrable to be part of your deposit payment for the build. You should discuss this matter with your builder as a different builder might have a different arrangement.
But if for some reason, you decided to pull out, maybe because you can’t get your finance through. This money is non-refundable and the builder may claim for any extra cost that they have incurred for preparing the drawings and documents.
Or if you had a change of mind and decided to build with another builder, this deposit is still not refundable. On top of the extra cost which the builder has incurred to date, there is also a copyright fee that you will need to pay should you want to use the design with the other builder.
Although PPA is only one to two pages long, it is still very important for you to read it carefully, have a good understanding of it and clarify with the builder should you have any questions.