Browse Forums General Discussion Re: HIA HOME CONTRACT 9Jun 01, 2023 2:30 pm Okay so the builder said was pretty flexible and he said he will fix the default interest rate lower (18%) and the late completion as the default $50 per day. He said that he still had to have the special condition for price increase though.this is what he wrote. “ we have not encountered a situation where we had to utilise the price increase special condition. However, it is included in all our contracts as a proactive measure to protect you and every other client we serve. In the unlikely event that pricing does rise, we have structured the special condition to ensure that we only pass on the actual difference in cost without any builder margin. We believe this approach to be fair and reasonable, and our clients thus far have found it to be acceptable.” Re: HIA HOME CONTRACT 10Jun 01, 2023 6:15 pm Suggest considering what your weekly costs of delay would be. Such as interest, rent, storage etc and compare with the weekly rate of liquidated damages that the builder is proposing. Allow for weekends, holidays and rain days etc as well. Your negotiating position is strongest before you sign! There are likely to be ongoing skilled labour shortages across the construction sector and resulting cost inflation effects so i believe costs will increase and there will be delays with contractors. So does the builder. If you accept the 'special condition' make sure the contract clearly documents a requirement for sufficent proof of actual costs, including tax invoices and records of off invoice rebates, trading terms etc. There is smoke and mirrors here! 3rd party verifiable is best. Also check with your broker / bank about such cost escalation terms. The builders initial unfair position indicates their contempt and predeposition for deception, dont trust them. Re: HIA HOME CONTRACT 11Jan 24, 2024 1:16 pm ![]() ![]() Any builder that starts with 45% interest rate and $5 per day LD should be an immediate write-off in my books. But I guess you found that out way too late in the process and you face a decision of wasting time and money already spent or having some faith in the builder who is ready to rip you off on the contract. This 100%. Don't bother negotiating with such builders. Building approvals are now in the basement. Lowest levels in 11 or 12 years from the data released this week. Builders are getting hungry. Any respectable builder would be more than willing to negotiate and not start with such silly terms in the contract, knowing their future works are drying up fast. I'm starting a build now. Found the negotiation and flexibility of the builder to be far more than I expected. Would love to know who your builder is? You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 18894 ![]() Unless there is something in special conditions the builder does not have to give you timeline. If your demolition contractor has not removed Asbestos and it was found… 12 31201 ![]() The review is presented by the customer. A private building consultant appointed by the customer to serve as their inspection agent does not communicate with the builder.… 5 1766 ![]() |