Browse Forums General Discussion 1 Mar 22, 2022 11:43 am Hi All, I hope someone can give me some advice. I signed a house and land package in NSW in December 2020. The building contract was a fixed contract and due to the delay of covid lockdown and what not, the construction has not started and they are planning to start construction this month, however due to the increase on labour and material, the builder wants an extra 20 percent to start the construction. Are the builders allow to pass back on the cost to us as its a fixed contract? 20 percent is a lot of money considering this is my first home and i wont be able to get a loan for it as i am maxed out. Thank you. Re: Land and home fixed contract 2Mar 22, 2022 12:02 pm Hey AT123 welcome to the forum read the contract and in between the lines (humour) There are many clauses within the contract for the builder to pass on cost increases. If you pull out now then you'll loose only your deposit. If you default on bank repayments you loose your House. Goodluck Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Land and home fixed contract 3Mar 23, 2022 1:42 am why has it taken so long between contract signing and site start? was the land registered? We are Expert Consultant's, and we are here to help. Re: Land and home fixed contract 4Mar 23, 2022 3:56 pm BuildingandLegal why has it taken so long between contract signing and site start? was the land registered? Hi, Thank you for your reply. The land settled in July 2021 and then we had a lockdown in NSW hence why the delayed. Do you know if they can adjust a fixed contract in NSW? Re: Land and home fixed contract 5Mar 23, 2022 4:44 pm Land rego is a delay on your side, I know you're not the developer, however you bought the land to the builder and the delay is outside the builders control. Lockdown's are a Chief Medical Officer Directive which are classed as a legislative order, at the time of entering into the contract was it foreseeable that those specific dates would be declared Lockdowns. There are plenty of clauses that the builder can use. The delays are not the builders fault and not yours, but the builder is not going to take the hit because they feel sorry for you, at the moment builders are in survival mode. I would suggest have a frank and open discussion with the builder. Maybe suggest they provide actual costs for the increases being sort and maybe ask for the margin on the increase's be 0%, the strength you have is builds are running on a start, stop, start progress due to unavailability of trades & materials they will be asking for extensions of time, you might be able to use these on your side. We are Expert Consultant's, and we are here to help. 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 19405 So AFAIk the outcomes of the BAL ratings form part of a clause that allows them to pass these costs on to you. However the more relevant detail is how did it go from 19… 1 11043 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16975 |