Browse Forums Building A New House 1 Jan 27, 2014 3:41 pm Hi, I am currently trying to finalize my contract with my builder (Plantation Homes) and I noticed the "late completion compensation" clause says they will only refund us $15 per day if they do not finish on time. Is that normal? I have heard from friends who built that it is normally $32 ~ $50 per day? I have also asked the people who are built with Plantation Homes in my neighbourhood and it seems they are also given $15 per day late completion fee. From what I read in this forum it seems the builder can also easily dodge this by claiming delays due to weather million other "circumstances" out of their control and not have to pay for it, so is it even a moot point to raise this at the contract meeting? "Occam's Razor. The simplest explanation is almost always somebody screwed up." Re: Late completion compensation - $15 a day - is that norma 2Jan 27, 2014 4:08 pm I'd say $15/day is low although some builders only put in $1/day! See http://www.anewhouse.com.au/2012/01/understanding-…idated-damages/ for some more information. The Harder You Try - the Luckier You Get ! Web site http://www.anewhouse.com.au Informative, Amusing, and Opinionated Blog - Over 600 posts on all aspects of building a new house. Re: Late completion compensation - $15 a day - is that norma 3Jan 27, 2014 4:19 pm I asked for $500 a week as liquidated damages. My builder didn't charge me any extra for this ( although some will - to cover their risk ). Build thread: here Land Nov 12, Contract 6/07/13, Consent 15/08/13, Start 20/09/13, Slab 25/09/13, Frame 4/10/13, Brick 21/10/13, Roof 2/11/13, Lock-up 17/12/13, Handover 3/3/14 Re: Late completion compensation - $15 a day - is that norma 4Jan 27, 2014 5:33 pm We got ours increased as the original amount wouldn't have even covered a basic weekly rent. However you may be right saying it may be a moot point as I would imagine most builders would claim all sorts of delays to avoid paying. Re: Late completion compensation - $15 a day - is that norma 5Jan 27, 2014 6:05 pm judydg However you may be right saying it may be a moot point as I would imagine most builders would claim all sorts of delays to avoid paying. In a standard building contract there are very few reasons for a builder to claim an extension of time. For instance a builder is required to allow for the amount of wet weather that could be expected, and can only legally claim if the number of wet days exceed that allowance. That doesn't stop them 'trying it on' with customers who don't know their rights. If you want to understand a bit more follow this link: http://www.anewhouse.com.au/2012/08/con ... ct-period/ The Harder You Try - the Luckier You Get ! Web site http://www.anewhouse.com.au Informative, Amusing, and Opinionated Blog - Over 600 posts on all aspects of building a new house. Like I said the Occupancy Certificate is not the tollgate that marks the completion of the house. The contract defines… 7 10762 4 6834 Yes, get a builder, make sure he is experienced and a registered building practitioner 5 8978 |