Browse Forums General Discussion Re: Builder’s extra charges on fixed-price contract 3Jan 10, 2022 9:31 am Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Builder’s extra charges on fixed-price contract 4Jan 10, 2022 9:49 pm I am no expert but have come to realise that a fixed price contract is not really a fixed price contract and there can be many additional and unexpected costs involved.. e.g. retaining walls, driveways, electricity during the build, site costs (outside of whats specified) and verge repairs to name a few. To be charged extra for things like plastering is a bit weird. Were you provided with a detailed list of inclusions? This should set out what is included. For instance in mu builders inclusions it details "site cleaned of all building rubbish and debris post build" etc. You might want to consider taking your contract, all the invoices and inclusions to lawyer for a review. Might set you back a few hundred but could provide some more clarity re your options. At the minimum I would be asking for itemised receipts if you have not done so already. All the best and hope you get some resolution with this. Re: Builder’s extra charges on fixed-price contract 5Jan 11, 2022 8:08 am ![]() At the minimum I would be asking for itemised receipts if you have not done so already. Where does it say that in a MBA or HIA contract? Here are lump sum contracts fixed price ? If the builders owns copyright on their drawings, data and invoices, what are you going to check, when, how and then what? More and more are finding these relevant posts, but unfortunately it's to no avail. OT, Ask Questions here and do your homework before you sign up.... otherwise sorting things out later on becomes too late. Forewarned is forearmed Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Builder’s extra charges on fixed-price contract 6Feb 25, 2022 11:30 am ![]() First timers here with a large demolition, alterations and additions project. We signed our building contract early 2021 (February/March). The contact is a standard NSW HIA template and as far as I can tell there have been no alterations or exclusions from the standard copy. However, since construction has begun our builder has sent us repeated extras’ invoices for increased material costs (e.g $7k for extra floor joist, extra plastering, extra concreting, extra everything!) despite the contract being fixed price, no additions or variations requested from us, or our engineer. The extra cost of these invoices amounts to over $20k. To make matters worse, we have had to purchase $7k worth of PCIs that are included in our building contract price because he never gave us adequate notice to order items, and thought it was too hard to order products from online stores or interstate suppliers, and so we purchased these items ourselves. He said he would credit us at a later time. I understand there can be provisional sum items listed, however our contract lists ‘Nil’. We have never agreed to any variations or increased costs in writing, and he simply sends us an invoice after the fact without our consent. After the first invoice, we sent him an email to say he needed to check and confirm all of his contractor’s and supplier’s quotes and if any prices had increased he needed to inform us and arrange an alternative, yet this has just been ignored. He has continuously harassed us with multiple phone calls a day to pay progress payments before stages are completed. Before Christmas, he removed his sign from our construction site and all QR check-ins, and sent us the second last progress invoice despite that stage being incomplete (painting not complete) and earlier stages already paid (e.g electrical work, bathroom) still incomplete. He has refused to clean up the site of all rubbish, excavated material from plumbing works, and building material because he “didn’t quote for that”. Additionally, subcontractors have caused thousands in damages to our house, such as falling through the floor onto our air conditioner that now needs repairing, damage to new paintwork, damage to the new kitchen that was put in 5 weeks ago. The issue we have now is that he has not reimbursed us for any of the PCI items we have paid for outright, and he continues to send us extra invoices to which he simply credits the PCI items he owes us but still expects us to pay the difference. To make matters worse, his last progress payment is a measly $1k (less than 1% of the contract price!!). So once we pay this next progress payment we will have no leverage to recoup any of these costs if he just walks away. Has anyone had a similar experience or been able to request that the Bank deduct costs already incurred or disputed from a progress payment? We are now horrified that the bank accepted such a small final progress payment. We even tried phoning our lender, BankWest, to see if it was acceptable to send extras invoices on a fix priced contract and their answer was that it happened sometimes and “did we need more money?” 🤯🤷♀️ Our next thought is to contact fair trading, any other suggestions!? Hi sophielockwood From your narrative, it would appear that the Builder has made improper variations. You could look into getting advice from a specialist construction lawyer in your area. Going to Fair Trading is also another viable option. Cheers John Get sound legal advice. We manage Building Disputes, Construction Contracts, Security of Payment. PM for queries. https://www.contractsspecialist.com.au/articles/ Re: Builder’s extra charges on fixed-price contract 7May 07, 2022 9:20 pm Hello Except in a few circumstances, unless your building contract allows for it, a builder may not pass on material and labour price increases to the owner in a fixed-price building contract. I have an article on this point exactly if anyone is interested - https://stonegatelegal.com.au/price-inc ... racts-qld/ There is a lot of it going on at the moment. Re: Builder’s extra charges on fixed-price contract 8Jul 12, 2022 1:09 am ![]() Hello Except in a few circumstances, unless your building contract allows for it, a builder may not pass on material and labour price increases to the owner in a fixed-price building contract. I have an article on this point exactly if anyone is interested - https://stonegatelegal.com.au/price-inc ... racts-qld/ There is a lot of it going on at the moment. This was a great article, thanks for laying it out so clearly. We have a special condition which is pretty ambigous - something about variations for factors "that the builder could not resonably have foreseen" I am pretty sure that this is how our builder will be justyfying the price increases. Re: Builder’s extra charges on fixed-price contract 9Jul 13, 2022 11:56 am ![]() We have a special condition which is pretty ambigous - something about variations for factors "that the builder could not resonably have foreseen" I am pretty sure that this is how our builder will be justyfying the price increases. You also forgot vague documentation, That allow for changes and you are none the wiser. Battlers are waking up to the games some builders play... just make sure it's not too late Have your own plans, Engineering ,and correct certifications... Builders have a duty of care.... it's 2 years on you can't keep finding reasons to blame covid and others for their screw-ups? Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Builder’s extra charges on fixed-price contract 10Jul 14, 2022 9:42 am ![]() ![]() We have a special condition which is pretty ambigous - something about variations for factors "that the builder could not resonably have foreseen" I am pretty sure that this is how our builder will be justyfying the price increases. You also forgot vague documentation, That allow for changes and you are none the wiser. Battlers are waking up to the games some builders play... just make sure it's not too late Have your own plans, Engineering ,and correct certifications... Builders have a duty of care.... it's 2 years on you can't keep finding reasons to blame covid and others for their screw-ups? Are variations intended to cover increase in costs due to material and labour shortages? Re: Builder’s extra charges on fixed-price contract 11Jul 14, 2022 10:23 am Variations are changes to the contract and you also have to agree to them. If your documentation is 100% then you don't have to accept any changes. As that's what you have contracted into, at worse Builders are using any variation claims for price gouging, , ie. poor construction, material substitution, economic vagaries, etc, etc on unexpecting battlers to cash flow their failing business. You will need to work out the builders situation before you commit to signing contracts , make sure you own copyright of the drawing, engineering data/proofs always get 3 builders to sharpen their pencil and quote.. If they see you're a novice they'll take advantage of the situation.. walk out Cheers Chris Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Builder’s extra charges on fixed-price contract 12Jul 22, 2022 1:08 pm ![]() Hello Except in a few circumstances, unless your building contract allows for it, a builder may not pass on material and labour price increases to the owner in a fixed-price building contract. I have an article on this point exactly if anyone is interested - https://stonegatelegal.com.au/price-inc ... racts-qld/ There is a lot of it going on at the moment. Thanks for taking the time to post here and also publishing the article on your website. The legal advice I received was aligned with what you have published. Forums always attract lots of armchair experts and their opinions but its always good to see professional informed opinions rather than those from nameless forum nobodies. Re: Builder’s extra charges on fixed-price contract 13Nov 12, 2022 8:57 am But fair trading doesn’t help much. They only look at defect and side lines anything to do with contract One of my friend facing the similar issue with builder keep on sending the invoice even after property have been handed over ![]() ![]() First timers here with a large demolition, alterations and additions project. We signed our building contract early 2021 (February/March). The contact is a standard NSW HIA template and as far as I can tell there have been no alterations or exclusions from the standard copy. However, since construction has begun our builder has sent us repeated extras’ invoices for increased material costs (e.g $7k for extra floor joist, extra plastering, extra concreting, extra everything!) despite the contract being fixed price, no additions or variations requested from us, or our engineer. The extra cost of these invoices amounts to over $20k. To make matters worse, we have had to purchase $7k worth of PCIs that are included in our building contract price because he never gave us adequate notice to order items, and thought it was too hard to order products from online stores or interstate suppliers, and so we purchased these items ourselves. He said he would credit us at a later time. I understand there can be provisional sum items listed, however our contract lists ‘Nil’. We have never agreed to any variations or increased costs in writing, and he simply sends us an invoice after the fact without our consent. After the first invoice, we sent him an email to say he needed to check and confirm all of his contractor’s and supplier’s quotes and if any prices had increased he needed to inform us and arrange an alternative, yet this has just been ignored. He has continuously harassed us with multiple phone calls a day to pay progress payments before stages are completed. Before Christmas, he removed his sign from our construction site and all QR check-ins, and sent us the second last progress invoice despite that stage being incomplete (painting not complete) and earlier stages already paid (e.g electrical work, bathroom) still incomplete. He has refused to clean up the site of all rubbish, excavated material from plumbing works, and building material because he “didn’t quote for that”. Additionally, subcontractors have caused thousands in damages to our house, such as falling through the floor onto our air conditioner that now needs repairing, damage to new paintwork, damage to the new kitchen that was put in 5 weeks ago. The issue we have now is that he has not reimbursed us for any of the PCI items we have paid for outright, and he continues to send us extra invoices to which he simply credits the PCI items he owes us but still expects us to pay the difference. To make matters worse, his last progress payment is a measly $1k (less than 1% of the contract price!!). So once we pay this next progress payment we will have no leverage to recoup any of these costs if he just walks away. Has anyone had a similar experience or been able to request that the Bank deduct costs already incurred or disputed from a progress payment? We are now horrified that the bank accepted such a small final progress payment. We even tried phoning our lender, BankWest, to see if it was acceptable to send extras invoices on a fix priced contract and their answer was that it happened sometimes and “did we need more money?” 🤯🤷♀️ Our next thought is to contact fair trading, any other suggestions!? Hi sophielockwood From your narrative, it would appear that the Builder has made improper variations. You could look into getting advice from a specialist construction lawyer in your area. Going to Fair Trading is also another viable option. Cheers John Thank you so much everyone. This all makes a lot of sense. I guess when you talk to a builder who butters up everything to look very polished, you get to start believing… 7 71890 I'm a home builder. ASK why the BAL report went up? Did you change home position, change design? 2 28297 In QLD there is form 12 for aspect of work completed inspection certificate and also form 16 for each stage of work inspections. Your builder should supply you and the… 3 15296 |