Help! Builder wants more money!

madmel · Nov 18, 2008 3:17 pm

We have been having the most wonderful build experience so far, with no major issues and handover due next week.

We have just received a call from our builder - or rather the Accounts girl - to tell us that we need to find another $4,000 to pay for extra soil removal. The only money we have left to draw down from our Construction loan is for the final invoice - the amount as stated in our Contract - we don't have an extra $4,000 that's for sure!

I must add that we have already paid $4,000 for soil removal at the beginning as it was in our Contract as a provisional sum. This is extra that they have had 6 months to tell us about!!

So what can we do? Is there anything we can do? Can we ask for proof of the extra costs? Help please!

xMadmel
_____________________________
http://marshallmansion.blogspot.com/

Uncle Arfur · Nov 18, 2008 4:43 pm

As a suggestion IF the soil hasn't already been removed why not tell the builder to leave it there and you will have it removed later at your own expense, and when you have the money?

IF they have already removed it I am guessing you are stuck with the bill although its a little unfair they didn't warn you before hand.

ECOECO · Nov 18, 2008 5:34 pm

madmel

We have been having the most wonderful build experience so far, with no major issues and handover due next week.

We have just received a call from our builder - or rather the Accounts girl - to tell us that we need to find another $4,000 to pay for extra soil removal. The only money we have left to draw down from our Construction loan is for the final invoice - the amount as stated in our Contract - we don't have an extra $4,000 that's for sure!

I must add that we have already paid $4,000 for soil removal at the beginning as it was in our Contract as a provisional sum. This is extra that they have had 6 months to tell us about!!

So what can we do? Is there anything we can do? Can we ask for proof of the extra costs? Help please!

xMadmel
_____________________________
http://marshallmansion.blogspot.com/

I looked at your blog and I cannot see where the cut could not have been predicted 100% and built into the cost.

Ask your builder for a detailed account and a reason for the overrun (known as Extra To Schedule or ETS) against budget.

You want to know how the original estimate was made and what the difference was that could not be foreseen. This is reasonable and you are entitled to it before you pay.

Garn · Nov 18, 2008 8:41 pm

Hi, ask to see the original invoices from the earthworks company just to make sure that they aren't charging you twice for the same job. Our builder did this on our build. Luckily we had taken photocopies and could prove that they were the same invoices. If done purposely, it amounts to ** and is a criminal offence.

Garn.

ausfatcat · Nov 19, 2008 5:38 am

Garn

Hi, ask to see the original invoices from the earthworks company just to make sure that they aren't charging you twice for the same job. Our builder did this on our build. Luckily we had taken photocopies and could prove that they were the same invoices. If done purposely, it amounts to ** and is a criminal offence.

Garn.

I truely doubt it was done on purpose these things are pretty easy to mistake. Good to know you sorted it out.