Build contract

I wish I found this earlier, so shut me down if it’s been asked. Our builder is chasing us for the 5% deposit on the build (we have paid the tender amount to secure the price of our build). I have spoken to the developer and they are track for registration in July 2019. Is it unreasonable for the builder to be getting us to sign the build contract (HIA) - their defence is we can get started on picking colours etc. mine is why would I pay for something that is still 5months+ away from even remotely being started. Take into consideration that if the site is accessible by 6-10-2019 the builder will start charging us regardless. Thanks Rhi ps have spoken to our solicitor who advised to sign and pay not sooner then 3 months out.

Maybe if you sign the builder will agree to hold price? Most builders will not hold a price unless you have some skin in the game.
If you can, make sure there is a clause that you are entitled to any specials in your favour and they can only reduce your contract NOT increase it. For example, you may sign and one week later the builder is offering free ducted or flooring etc

We have signed and paid on the tender which secures our build price. The HIA contract is pretty stock standard which I am told by from our solicitor and as well as HIA do not many variables can come into play

The HIA contract is terrible

Cool, write your own then.

Typically once you enter into a building contract (paying the 5%) you should have a fixed price contract (subject to soil test & contour survey) and the builder will then organise the consultants for Soil Testing, Contour Survey and Engineering on your block.

Since the land is not yet registered they will not have access to do these. However some developers allow builders consultants on site to do soil testing and contours prior to registration (sometimes up to 4 weeks prior). This has the potential to save you weeks since the builder can start once Land Registration (providing all approvals are in place) is reached.

Hope this helps,
Laurence

We had the similar experience with our builder. Since your land is not registered assuming its not accessible, your contract is not typically a fixed price contract. You will be signing multiple Post Contract Variations (PCVs) until you complete the DA/CDC approval. Everything added will be your final contract price.

Signing the HIA is more to lock you in legally which includes you paying a fair amount of deposit (5%). At the moment, you have a chance to move and most of the other builders refund the loss at this stage. But once you sign your HIA, its more into legal stuff. I would suggest read the HIA and you will understand.

Tell them that you will sign the contract only after you know the final price. There are builders who does the color selections and all these procedures before signing the HIA.