Building contract with Metricon

I have today received the Contract documents from Metricon for review, in preps for my upcoming contract signing appointment.

I was gobsmacked to see the Sites Works cost has gone up to $35k from the initial estimate of $20k.
my block of land is located in an established area, Melbourne’s west.

Can someone please help me out with the following questions, pls.
Q. Is it normal for the site works cost to increase by almost double from the initial estimate. If so, what has possibly changed eg. Soil test completed? between the estimate provided by the sales consultant and this final Contract amount?
My land is anongst the 20+ blocks that are currently undrr construction also by Metricon (as part of subdivision) so by default Metricon would have some understanding of the site works in order to provide the initial estimate of $20k? (I know Im making assumption here).
Thanks guys!

The problem with Metricon is they give away “free” stuff in promotions and worse is that people actually believe they’re getting “free” stuff (you only have to look at this forum to see this).

There’s no such thing as free stuff, someone pays for it somewhere, and your site costs estimate vs reality is one example of an easy way for them to recoup the “free” stuff.

Walk away.

Tran18 Welcome to the forum
The salesperson on high commissions are not geotechnical Engineering experts.
They will tell you whatever you want to hear and do whatever it takes to put the Preparation of Plans deal on the table
You can choose to pay it or walk away, there is no legal "Duty Of Care" as far as the salesman is concerned

Thanks gillybean for your honest advice. I put my heart and sole into this and now devastated but i guess better now than later. Ta

Is it not in a new estate? Have you gone for a fixed site cost?

1. Your sales consultant does not know the full extent of engineering or site works involved. It is only an allowance.
2. No two blocks or house designs are the same.
3. Your design could have increased the site costs eg long narrow house.
4. They do not guess based on current works surrounding your block.
5. The contract would explain the extra works involved over the standard allowance.

Thanking you. I have lost my confidence in them considering all the episodes Ive experienced to date includig last week after all the running around to prove to their draft team that I dont have an easement on my block. They had the title all this time which they could have access to verify however I ended up having to pay landata for an online title just to prove their incompetency.

What do the site costs generally cover to be specific?

Our contract price never changed and was the same as the tender price. We bought our own soil test prior to getting quotes so they had to be competitive to get our business.
You would have to be naive to sign anything with a builder without doing your own soil test. $450 well spent I think.
While not a certainty, they can offer a site works discount and fixed site costs.
We ended up paying less than $9k for E class site, 45 concrete piers ie everything was fixed and negotiated at tender stage. Lock it in at tender, fix your costs and ask for further site discounts.

Hi, the sales consultants have estimate price for the areas that you are build than its the soil conditions
This how it works
1. the size of the home you are building
2. the soil report findings
3. the engineering requirements on the structural design and loads throughout the design
As a independent inspector I get this question ask to me all the time

Hi. Our site costs have also gone up about the same amount. We are shocked too! Especially when they have said we need a $20k slab upgrade from standard??
We are building south east Melbourne on new land that is almost flat!
How did you go tran18- were you able to have your site fees reduced to near the original estimate?

How many times must I repeat myself - GET A SOIL TEST DONE before you talk to the builder!!
If you ask metricon, they will actually tell you which company they use for their soil tests so get it done then at tender they will lock in the price with no hidden surprises.

Great idea but unfortunately we haven’t settled in our land as yet... due to be early next month. So bit tricky.

I had my soil test done prior to approaching Metricon. And because I had a quote down with another builder as well, I had a comparison rate. Therefore, Metricon couldn't quote an exorbitant price.

Then don't talk to builders until your land settles.

💯 true!! No such thing as "free"

I bailed out and have not looked back. This doesnt help you, I know but I wasnt prepared to have more ‘surprises’ with them.