Admin fee for variation?

Hi all, I need your input here.

I have sign Building contract with my builder. The land won't be registered until mid 2018.

We have not receive any construction drawings. Based on their marketing drawing, we decided to make some changes like extended the kitchen bench, reducing the bathroom size, and remove the balcony.
An email came around 2 weeks ago saying that there will be $1,500 admin fee to calculate my price request. Is this normal?

Why would you sign a building contract that far in advance?
The price is bound to go up before the land is released and you will have to pay the increases
Wasn't this explained to you?

An admin fee like this would be fairly normal if they had already produced drawings and placed orders. The charge is more a deterrent than an actual cost. If they haven't prepared any of the above then there is really no justification in charging the fee as they haven't really incurred any associated costs.

You have plenty of scope to negotiate if this is the situation.

I would doubt if you have a binding building contract without drawings, it is more likely that you only have pre contract agreement for them to prepare plans for you, if so the variation charge is unreasonable because your plans are still being prepared.

StructuralBIMGuy, It meant to be home and land package. But they separate the land and building contract because the land is still under negotiation when we sign the contract. In the building contract it said that the tender price is fixed if the work commerce before/on 10 Nov 2018.

The team from their office emailed me said that the price calculation for my request will take amount of time to complete therefor the admin fee occur. They also said the fee is not negotiable
I did asked for pricing before, for additional windows and door.

Time taken to price up variations should be factored into the cost of those variations. A $1500 admin fee to do so is rubbish.....unless they have the highest paid estimators in the industry.

Mlestari
Was the $1500 admin fee explained to you by the salesperson initially?..You should contact the Dept of commerce or Fair trading in Qld...whichever is applicable

If you are on a binding contract and on a standard form industry contract then builder can refuse to carry out the variation or you can pay the price. It seems that is the case here.
Read your contract and see what it says about variations.
Another reason to make absolutely sure you know what you want before you sign, changing anything after you sign will be costly. Another reason for a pre contract review where another person can walk you through and perhaps pick up the issues.

structuralBIMGuy, it was explained by the pre-construction manager from the builder. What should I say to the dept of commerce related to this matter?

building-expert, I have sign the contract already. Clause Variation in the contract mention about general things like variations should be asked and reply in writing with the price etc. It did not mention anything about admin fee to get the pricing.

The reason why we asked for changes on early stage is to get things settle before they produce the construction drawings. Because we can not see much from the marketing plan drawing. What should I say to them?

have you bought house and land package from the builder or is builder building on your land?

We bought the home and land package from the builder. The land is still in negotiation when we sign both the land and building contract. Last month I got the Development Consent letter for the lot.