Browse Forums General Discussion 1 Nov 08, 2011 6:10 pm My builder is trying to charge me builders margin on the total actual costs of the prime cost items. My understanding was that it was on the difference between the actual costs less the amount provided for in the contract as a allowance. Eg Allowance under contract for electrical was $5000 The actual cost has come in at $10,000. He is calculating the margin on $10,000. I think it should be on the $5000 difference. I rang the HIA Consumer Hotline today and it was a waste of money. They said that that would be a their understanding but if my builder would like to contact them they would give him advice on how to calculate it. Can anyone help with this as I need to adjust my final amount I am going to pay. Jen Re: Builders Margin - Applicable to Actual Costs? 2Nov 09, 2011 8:20 am The Prime cost includes margin. I'm pretty sure we paid no extra margin on the extra PC (Prime Cost) stuff we had in our build. From HIA contract: "33.4 In relation to each Prime Cost Item and Provisional Sum Item, if the actual price of supplying the item or providing the work is, 1. Less than the allowance, the difference is deducted from the Contract Price; or 2. More than the allowance, the total of the difference plus the relevant margin or excess stated in Schedule 2 applied to that difference is added to the Contract Priceand is payable with the next Progress Payment in which the amount for that item or work is included." Reading that I would say: $10k - $5k allowance x margin stated + any extra labor required to install (if any extra required, say if more area covered than in original contract) x margin stated. Just call & email your builder and say you believe there is any error and that you asked the consumer hotline and they agree with you. Tell him you cannot pay the invoice until it is resolved. Try talking it out. I am not sure whether Perth has its own way of doing things in regards to this. Most of Perth has class A (sandy soil), except for some areas near rivers or hills. 2 13082 Looking to tile the facade pillars rather than rendering. Builder is quoting 2500$ laying cost for upto 10msq. The 2 pillars come to be 16msq. So laying costs are 5000$… 0 7542 10 15743 |