Champion Home clause 44.4 - Anyone?

ch1ntook · Mar 17, 2023 9:45 pm

Just wondering whether anyone here fell foul of the clause 44.4 of the building contract Champion Homes gets you to sign.

This appears to be a special condition added by Champion Homes to the standard HIA contract, and quite self-serving. Usually project builders like them arrange all the necessary approvals, and prepare all the paperwork. So, if there is delay caused by them preparing all the necessary paperwork, they can easily pocket sweet additional $23K on a $500K contract.

StructuralBIMGuy · Mar 18, 2023 11:17 am

Here's the problem with some builders and standard building contracts
they are touching up clients with prices increases every 3 months, holding off waiting for prices to stabilize or drop
In the mean time, you have 2 options, pay up or pull out.. Either way it is going to cost you
I suggest you get legal advice
All the best

ch1ntook · Mar 20, 2023 4:31 pm

Has anyone else come across similar situation? Is paying up now and pursuing legal option later a viable option?

StructuralBIMGuy · Mar 21, 2023 9:52 am

The delays and price increases are always someone else's fault.. the builders never blame themselves, let see
first it was covid, then material/workers shortages, followed by Ukraine war, next it will be govt expenses and increased taxes, and so on
Home builders are always asked to pay up front.
The only way to know what's a fair price, own the design, engineering, data and then select 3 builders to quote.
LOL, if they aren't interested then it's a waiting game... I've been in the industry long enough to know that's how it works.
If you haven't signed up they'll soon enough come back to the negotiating table.

KJones · Aug 26, 2023 3:20 pm

ch1ntook

Just wondering whether anyone here fell foul of the clause 44.4 of the building contract Champion Homes gets you to sign.

This appears to be a special condition added by Champion Homes to the standard HIA contract, and quite self-serving. Usually project builders like them arrange all the necessary approvals, and prepare all the paperwork. So, if there is delay caused by them preparing all the necessary paperwork, they can easily pocket sweet additional $23K on a $500K contract.

That was what happened to me and my friend. We were hit with the penalty at the end of the construction process, and had to pay up in order to get the keys. Stay away from them at any cost.

ch1ntook · Aug 28, 2023 10:56 pm

KJones

ch1ntook

Just wondering whether anyone here fell foul of the clause 44.4 of the building contract Champion Homes gets you to sign.

This appears to be a special condition added by Champion Homes to the standard HIA contract, and quite self-serving. Usually project builders like them arrange all the necessary approvals, and prepare all the paperwork. So, if there is delay caused by them preparing all the necessary paperwork, they can easily pocket sweet additional $23K on a $500K contract.

That was what happened to me and my friend. We were hit with the penalty at the end of the construction process, and had to pay up in order to get the keys. Stay away from them at any cost.

Thanks for sharing kjones. Was the stated reason clause 44.4 for you or something else? Trying to figure out what else we will be slammed with by the end of the construction... we are on almost 100K on top of all the variations etc we had requested.

KJones · Aug 29, 2023 9:11 pm

Hi ch1ntook,

The penalty due to clause44.4 was the main upset which took us by a big surprise. Our variations were kind of expected and budgeted. The silver line out of it was the build quality of both mine and my friend's house was acceptable, and the defects were fixed promptly and my friend got his kitchen cost almost fully refunded due to the incorrect installation of waterfall sides for his island bench. By and large, it was an very unpleasant experience.

My new neighbour had to fork out $100K extra claimed his builder in the mid of construction due to material and labor cost blowout, such stories seem to be quite common lately in the Norwest of Sydney where I reside.