Browse Forums General Discussion Re: Fixed price contracts - Are they really? 17Nov 05, 2008 11:08 pm “It's just as unpleasant to get more than you bargain for as to get less” George Bernard Shaw. Re: Fixed price contracts - Are they really? 20Nov 12, 2008 4:23 pm Garn What people really get upset about is when a builder says "oh the price of concrete and timber has gone up since we signed the contract, so your house will now cost you an extra $5000". If I have a contract for a house of agreed specifications to be built for an agreed price, then I expect the contract to be honoured, unless there is a change to the specifications of the project. A builder cannot just come along and say "my costs have gone up so I am passing it on" and expect the client to wear it. How would the builder react if the client said "the stockmarket crash has reduced my income so I'm going to have to pay you less for the house"? An agreed price for an agreed product in an agreed timeframe, unless the specifications of the product change. Garn. This is exactly what my builder is wanting to include in the contract. They have indicated on their tender that if there is any increase in product or material during both the tender and the contract period, I will be charged according. He has sighted clause 14, and clause 17 to enable this. I have read these clauses and I do not read this as being a suitable reasons. Yes, he could present me with a variation, but I would not need to agree to it, and I feel that I would be able to reasonably be able to refuse to sign it, without clause 17.7 applying, as this would be a different scenario to what Zenith illustraded, as it doesnt relate to work complying with law of some other statutory authority. Do I read this correctly? How should I handle things, as we are not yet to contract? Do I point out my intrepation (in which case I would assume he would have a special clause put in, that I would of course refuse), or do I let sleeping dogs lie and hope that it never arises, and if so just refuse. (i'm also concerned with this as this may cause other problems with progession of work). Opinions please do not pay until you are satisfied with workmanship windows require flashing over the head archithrave and up under weatherboards 3 25293 Thank you so much everyone. This all makes a lot of sense. I guess when you talk to a builder who butters up everything to look very polished, you get to start believing… 8 2249 So AFAIk the outcomes of the BAL ratings form part of a clause that allows them to pass these costs on to you. However the more relevant detail is how did it go from 19… 1 848 |