Browse Forums Building A New House 1 May 07, 2022 6:47 pm Hi We are working through a quote with a builder and due to the increase in costs we have had some items deleted from the base price: reduced alfresco and porch. When we were initially given the quote just before Easter the credit included the margin. Last week we received an updated quote and the margin for the credit has been taken out. We have a base price which includes the margin and to delete any item off the base price we are told we do not get back the margin anymore. Just wondering if this is normal practice. In the quote we are charged for additional fees so we don't think its related to any admin costs and we have not yet signed a contract so its not a variation. We just feel sad that while we are trying to bring the build cost to a level we can proceed, we are not getting full amount back as we had hoped. We understand there are overheads and margins need to be applied and happy to do so. Not sure what the normal practice is surrounding credits? Re: Removing items - should this include crediting back mar 2May 08, 2022 9:56 am Dee Jones Unfortunately this is common practice and clients are none the wiser until they have to look for savings by taking items out of the contract. Every change you make the builder credits back costs minus their profit and every new item that get puts in including extra profit... It is referred to as money for jam, beware when the salesman says " we'll sort that out in the office later on.... over tea, scones and jam.. " Then you get jammed with their contract documents (humour) OT to others starting the process own your drawings, engineering, data/proofs and estimates, then approach 3 builders and be in control up until you sign the contract. Forewarned is forearmed Cheers Chris Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Removing items - should this include crediting back mar 3May 08, 2022 11:51 am Thanks for the reply. That is terrible news as we are trying to bring down the costs and had assumed what we were charged would be fully credit if we took it out. Is there a standard or something that builders are required to follow relating to this or is it up to each franchise builder to decide? Re: Removing items - should this include crediting back mar 4May 10, 2022 9:33 am There are no standards? You have a vague building contract that skirts around variations and changes that suits the builders.... but that is it. Unfortunately, you don't become aware of the contract limitations until you have problems. The everyday reality is clients are taking possession of incomplete houses, by means of variation to the contract. Expecting to finish them later when trades, funds and material are available... sadly, they still end up paying through the nose while taking years to complete. If you are planning on a new build, you will require your own designs, data and estimates then choose your builder wisely as they are predicting tougher times ahead. Cheers Chris Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs The best advice is for you to get a competent building consultant to guide you through your build 7 4976 The significant date is when receive final payment invoice Check that section of contract Bit of fluff by builders prior to that 1 16254 thanks, yes they are dry , thats a good idea with fish oil as sanding will be hard 4 3333 |