Builder’s price variation before commencing works

Deal All, We have signed a House and Land Package with a Builder on 05/03/2021 for a development at Austral in Liverpool LGA. We have two seperate contracts and price was fixed for the building works for 24 months which is expiring on 05/03/2023.

My builder has just provided me a variations of 20% which is 80k to the original contract price.

The builder has also kept the provision of reviewing the price within three months if the work doesn’t commence before 01/05/2023.

Our land just got registered last week, 24/02/2023 and we are in a difficult situation to comply with the Builders demand.

The Builder is arguing that we have secured the land through them and they will claim damage if we don’t accept their proposal and build with them.

We understand the material price increase, but our salary has not increased to enhance the borrowing capacity. Also, rising interest rates significantly reduces our borrowing capacity.

The fixed price contract is ending on 05/03/2023. Does this mean our HIA contract is expiring too?

Could you please advise our rights if we want to terminates the contract?
Also, does anyone have similar experience? Appreciate your thoughts. Thanks - Lutfor

you need a proper legal advice for this one

see a lawyer.

that said, the writing appears to have been on the wall for this one for the last two years.

Thanks. I have engaged a lawyer. We have scheduled a meeting with the builder and will update further.

What does the 2 contracts say?

Start there, grab a dictionary.

If you proceed to cancel the contract the builder is entitle to losses and additional costs that he's incurred
You now need to add lawyers cost to your costs.
Sorry don't like your chances of your builder letting you off lightly
Read and properly understand your contract before you sign up

Contracts do not expire. The date is the date they were supposed to reach practical completion. If they haven't that just means they might be in breach. The contract will continue until the work is completed, or both parties abandon it by just walking away or its terminated.