One of the questions that catches new home buyers off guard is who pays for the utilities and services used during construction. The build takes months. Electricity powers the tools. Water is used for concrete, brickwork, and cleaning. Skip bins collect construction waste. Temporary fencing secures the site. Someone is paying for all of it, and understanding who is responsible for what helps you budget accurately and avoid unexpected invoices.
The short answer is that it depends on your contract, and the split changes the moment a permanent supply is connected in your name. Arrangements differ between builders, so your building contract is the authority on this, not a general guide. This guide breaks down each category so you know exactly what to expect.
Temporary Power and Electricity
Construction sites require electricity from the first day of work. Power tools, lighting, temporary site offices, and some construction equipment all need a supply. How that supply is provided depends on the stage of the build and the lot.
Before permanent power is connected, the builder typically uses a temporary power supply. On vacant lots in new estates, a temporary builder’s supply (commonly called a “builder’s pole” or “builder’s temporary”) is installed at the lot boundary. This is a metered supply connected to the electricity distributor’s network.
Who arranges it: The builder normally arranges installation of the temporary supply, because it is tied to site access and the construction program. Who bears the connection cost, and who pays for what is consumed, is set by the building contract and differs between builders. Do not assume either is included.
Who pays for the electricity used: This is the part most people get wrong. Once a permanent supply is energised and the account sits in the owner’s name, the consumption is generally the owner’s cost, even while trades are still on site. Before that point, while the site runs on a temporary builder’s supply, the arrangement depends on the contract. Confirm which applies to yours in writing.
What changes at handover: Once the home is completed and the occupancy permit is issued, the permanent electricity supply is connected in the owner’s name. From this point forward, the owner is responsible for all electricity costs. You will need to arrange an account with a retailer before handover if you want power from day one.
What to confirm in your contract: Check whether the contract includes temporary power connection and electricity during construction. If your builder’s contract specifies that temporary power is a client cost, budget for the connection fee (typically $500 to $1,500 depending on the distributor and the lot) and the usage costs during the build.
Water Supply During Construction
Water is used throughout the build: for curing concrete, mixing mortar, brickwork, cleaning, and dust suppression. Like electricity, the water supply during construction needs to be arranged and someone needs to pay for it.
On a vacant lot in a new estate, the water authority will have installed a water meter at the front boundary as part of the estate’s civil works. The meter is typically active and available for use once the lot is titled.
Who arranges it: The builder coordinates with the water authority to ensure the meter is active and accessible for the build. If the lot does not yet have a water meter (which can happen in early stage estate releases), the builder arranges a temporary connection.
Who pays for water during construction: Responsibility for water used during construction depends on the contract. Once the meter is connected and the account is in the owner’s name, consumption is generally the owner’s cost. Check how your contract treats it rather than assuming.
What changes at handover: After handover, the permanent water account transfers to the owner. You will need to register an account with the relevant water authority (typically South East Water, Yarra Valley Water, or Western Water depending on the area).
What to watch for: In some contracts, particularly in estates where the water infrastructure is still being completed, the owner may be responsible for the water supply contribution (a one off fee payable to the water authority for new connections). This fee ranges from $700 to $1,500 and is sometimes listed separately in the contract documentation.
Skip Bins and Waste Removal
Construction generates a significant volume of waste: offcuts of timber, plasterboard, packaging, brick rubble, roof tile scraps, and general construction debris. Managing this waste is a constant throughout the build.
Who pays for it: Skip bin hire and waste removal is the builder’s cost, included in the building contract. A standard single storey home typically goes through four to six skip bins during the build.
After handover: Any waste from your own fit out work (blinds installation, additional landscaping, furniture packaging) is your responsibility. Builders are required to manage construction waste in accordance with EPA Victoria regulations.
Temporary Fencing and Safety
Construction sites are legally required to be secured. Temporary fencing prevents unauthorised access, protects the public, and ensures the site complies with workplace health and safety regulations.
Who pays for it: The builder arranges and pays for temporary fencing (typically 1.8 metres high) as part of site establishment. This is included in the building contract for the duration of the build.
Permanent fencing is a separate item. In a Senka home, fencing is included as standard. Many other builders exclude it, meaning you arrange and pay for it separately. In new estates, boundary fencing is typically a shared cost with the adjoining owner under the Fences Act 1968 (Vic).
Site safety requirements (signage, barriers, WorkSafe compliance) are the builder’s legal obligation throughout construction.
What Is Typically Included in the Building Contract
To summarise, the following utility and service costs are typically included in a standard residential building contract in Victoria:
- Temporary power connection and electricity during construction
- Water used during construction
- Skip bins and construction waste removal
- Temporary fencing for the duration of the build
- Site safety compliance (signage, barriers, WorkSafe requirements)
- Council permit fees and building surveyor fees
- Final clean of the home before handover
These items are part of the builder’s obligations under the contract. They are factored into the contract price and should not appear as additional charges during the build.
At Senka, our new home contracts are designed to be comprehensive. We include all of the above, plus items that many builders treat as extras: landscaping, permanent fencing, a concrete driveway, and ducted air conditioning. For a full breakdown of what is and is not included, see our guide on what is included in a house and land package.
What You May Need to Arrange Separately
There are specific costs and arrangements that sit outside the building contract and are the owner’s responsibility.
Permanent utility accounts. After handover, set up retail accounts for electricity, gas, water, internet, and telecommunications. The physical connections are installed during construction, but the accounts are yours to arrange. Do this before settlement to avoid moving into a home without active services.
Water supply contribution. Some water authorities charge a one off connection contribution ($700 to $1,500) that may or may not be included in the building contract. Check the fine print.
Developer levies. In some estates, connection fees for sewer, stormwater, or telecommunications may appear on the land settlement statement rather than the building contract.
Contents insurance. The builder’s contract works insurance covers the structure, not personal items. If you deliver appliances or materials to site before handover, they are not covered by the builder’s policy.
Frequently Asked Questions
Who pays for electricity during construction?
It depends on the stage and on your contract. While the site runs on a temporary builder’s supply the arrangement is set by the contract, but once a permanent supply is connected in the owner’s name the consumption is generally the owner’s cost, even if trades are still on site. Confirm the position in your own contract.
Do I need to pay for water during my build?
Responsibility for water used during construction depends on the contract. Once the meter is connected and the account is in the owner name, consumption is generally the owner cost. Check how your contract treats it rather than assuming.
Who is responsible for skip bins on a building site?
The builder is responsible for all construction waste removal, including skip bin hire and disposal. This is included in the building contract. A standard home build typically requires four to six skip bin changes over the course of construction.
Is temporary fencing included in the building contract?
Yes. Temporary fencing is a legal requirement and is provided by the builder at the builder’s cost. It is maintained for the duration of construction and removed once permanent fencing is installed or the site is safe for access.
What utilities do I need to set up before moving in?
Before handover, arrange retail accounts for electricity, gas, water, internet, and telecommunications. The physical connections are installed during construction, but activating the services requires you to register with a provider. Setting these up before handover day ensures you have power, water, and connectivity when you move in.
Does the builder’s insurance cover my belongings during construction?
No. The builder’s contract works insurance covers the structure under construction, not personal property. If you deliver appliances, materials, or other items to the site before handover, they are not covered. Consider contents insurance if you plan to store items on site.
Standard inclusions such as front and rear landscaping, full boundary fencing and a concrete driveway apply to Senka house and land packages. On custom builds and knockdown rebuilds the inclusion list is set by your building contract.
