Browse Forums Building Standards; Getting It Right! Re: Handover and final invoicing. 6Apr 08, 2015 2:43 pm filoz2011 Dear experts, My new house has finally completed its practical inspection and found plenty of defects as per building inspector report. The builder is asking me to sign my final invoice prior to handover. How long is the warranty if any to have these problems rectified or reported to the builder. Thanks If your inspector is any good that is where you should be getting your guidance. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Handover and final invoicing. 7Apr 08, 2015 8:16 pm Um, does anyone realise that if you don't pay the practical completion stage even with minor defect outstanding you are actually in breach of contract? Most builders will be good and get to it straight away if you have a problem to keep you happy at handover, but technically speaking, you cannot simply not pay. You may not like it but it's clearly written In the contract Re: Handover and final invoicing. 8Apr 08, 2015 10:41 pm 33amc Um, does anyone realise that if you don't pay the practical completion stage even with minor defect outstanding you are actually in breach of contract? Most builders will be good and get to it straight away if you have a problem to keep you happy at handover, but technically speaking, you cannot simply not pay. You may not like it but it's clearly written In the contract That is why having a very good inspector is paramount because they will be able to guide you as to actually in breach of regulations and what is just a small defect that you should trust the builder to fix. Re: Handover and final invoicing. 9Apr 10, 2015 1:22 pm 33amc Um, does anyone realise that if you don't pay the practical completion stage even with minor defect outstanding you are actually in breach of contract? You may not like it but it's clearly written In the contract Well if you're dumb enough to accept a contract like that.... Re: Handover and final invoicing. 10Apr 11, 2015 8:36 am qebtel 33amc Um, does anyone realise that if you don't pay the practical completion stage even with minor defect outstanding you are actually in breach of contract? You may not like it but it's clearly written In the contract Well if you're dumb enough to accept a contract like that.... It's not a question of dumbness rather an issue of inequality of bargaining power. Major project builders supported by their associations that lobby the government on their behalf have produced standard building contracts. If you want a better control over your building contract you can get an architect and go to architectural form of contract, but that will cost you more. You cannot have the biggest bang for your buck and quality+control at the same time, something has to go. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Handover and final invoicing. 11Apr 12, 2015 9:53 pm qebtel 33amc Um, does anyone realise that if you don't pay the practical completion stage even with minor defect outstanding you are actually in breach of contract? You may not like it but it's clearly written In the contract Well if you're dumb enough to accept a contract like that.... Have you ever signed a building contract before? Re: Handover and final invoicing. 12Apr 14, 2015 7:00 am 33amc qebtel 33amc Um, does anyone realise that if you don't pay the practical completion stage even with minor defect outstanding you are actually in breach of contract? You may not like it but it's clearly written In the contract Well if you're dumb enough to accept a contract like that.... Have you ever signed a building contract before? Great question, doubt you will get an answer. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Handover and final invoicing. 13Apr 14, 2015 7:29 am If in QLD that clause is in the standard building contract that 99% of builders use. There is also sometimes clauses for interest charged on overdue invoices Re: Handover and final invoicing. 14Apr 14, 2015 3:08 pm I have signed such a building contract, knowingly and only under some duress since in the US, where we live, the standard is that the final payment is NOT due until the 'punch list' has been rectified. At handover just before Christmas, several faults were noted, the rectification of which would in total far exceed the final payment. We told the site manager that we would pay as soon as there was agreement on the tasks to be done, and the timeline for doing them. We did not move in (house was not habitable, several jobs which were our responsibility remaining to be done) but were shocked when 8 weeks later we still didn't have an agreed upon list, let alone a timeline. We pointed out that we had a tiler and tiles for the 70 sq meters of main living space and hallways waiting, and offered to retrofit the cement board that the builder had improperly laid. Answer: there's nothing wrong with the tile board, the tiler is a prima donna, and either pay or give control of the house back. So we called off the tiler (who has been everything patient and professional!) gave control of the house back to the builder, and hired an independent building inspector.... who (surprise surprise) among many other things found the tile board installation to be so deficient as to require its complete removal and re-installation. Six weeks further on, we STILL don't have a final list of what the builder is going to rectify, but at least the builder is still being polite to the inspector. I do think its amazing that a 1st world nation that has developed a strong set of standards and codes on paper doesn't enforce them with public inspectors and consumer protection laws. Our private inspector is doing an excellent job, and our house will be built right. But his services wouldn't be necessary here in California because our permit fees pay for plan checking and on site inspections from public inspectors --and because those standards are applied uniformly to *all* projects, a builder can't get away with slacking off on a job where the homeowners haven't retained private advisors. I suspect it means that the overall 'health' of the building stock is much more uniform and much more likely to conform to those carefully constructed standards. Chris On the threshold of retirement... and trying to check my assumptions at the door Re: Handover and final invoicing. 15Apr 15, 2015 6:49 am Yes too many of my clients are pressured to sign building contracts because they will miss out or the prices will go up or whatever, or are simply intimidated. The fact is that you must take time and care in reading and understanding your building contract, ensure it reflects what you will pay for. Get professional help. Just recently I averted a disaster for owner who was pressured to sign with incomplete documents (no engineering was done despite the fact that soil test had been done) It was going to be adjusted in post contract variation. Really in whose favour? It would have been like signing a blank cheque. Pre contract review is your most important inspection. Why? Because if you sign off on a bad deal willingly (not caring to read or understand) the law will not protect you, no one will, I can't, you will be a cooked goose. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Handover and final invoicing. 16Apr 15, 2015 2:26 pm 33amc Have you ever signed a building contract before? Nope, never seen one that I thought was acceptable, hence why I owner build. building-expert Great question, doubt you will get an answer. You should be careful voicing your doubts, they could be proven wrong very easily. Re: Handover and final invoicing. 17Apr 15, 2015 4:13 pm It's great to have your answer but it does not solve the problem for thousands of others who have no time or aptitude or are just too busy in their own jobs to owner build. They have the choice of either standard industry contracts or architect administered custom build at greater cost. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Handover and final invoicing. 18Apr 28, 2015 8:03 am If using the Std HIA building contract I draw your attention to the section " List of Defects and Final Payment". Basically, you are to give the builder a list of all defects at the nominated Completion date. The list is to be signed by both parties. When all defects have been rectified, the builder is to provide the owner with written confirmation. You then have 7 days to pay the final claim. This is just a snapshot of the clause but I suggest you read over it in more detail if under that contract type. Hi Need to read your contract about when final payment is received. Clearly outlines what happens. In vic, known defects or incomplete work must be completed before… 3 1140 Hi, I am approaching end of the build. My final invoice will be given to me soon to pay. Some context before I ask my question. 1. My builder wont do the landscaping or… 0 4051 regardless, your contract stipulates a payments schedule and SOPA doesn't give provision to that scenario. Your contractual terms appear to stand. Hence get a lawyer, it… 4 12274 |