Pressure from builder to sign contracts

Hi everyone,

Im building with a volume builder for our first home and just recieved the initial contract along with costings. I've noticed a number of incorrect items, missing or just strange things in the contract.

Now I've made my builder aware of this and the response was the following.

"any changes will need to be completed through a post contract variation after you sign the initial contract".

My concerns are
1. Should I even be signing such a contract if its wrong? (sounds stupid but i cannot understand why they insist I sign it first before they complete any variations)

2. Why do these items have to be in the form of a variation? Why can't they fix the original contract?

3. By signing, technically I have agreed to building the house with a number of things that I didn't ask for, things that I did ask for were missing. If i then go through post variation there are costs involved. My builder says things I've raised previously won't cost me but this then becomes a he said she said issue which I would much rather avoid.

I don't believe in creating conflict where there is none but am I being a bit paranoid here? Should I simply tell my builder to fix everything and include it in the initial contract?

I'd be concerned. If they can't be bothered to amend it prior to having you sign on the dotted line then I would question their ability. You have to work with them for around 12m and spend a horrible amount of money, if they won't get paperwork correct then what about the rest?

I agree ZoePerth, which is why im trying to be patient and solve this diplomatically. From a policy point of view, is it correct that any changes to the contract BEFORE ive even signed it must be done as a variation?

I always thought it was post contract signing.

He'll no, don't sign, or you will hear, you signed the contract, imagine the mistakes you will cop if theirs that many now.
Insist all mistakes are fixed and get a inspector /building lawyer to check contract, you will save lots of time and heartache and money if you accept, don't over trust, words, there too easy to say.
Protect your interests or risk becoming a stressed building experience.

How can they vary a contract that hasn't been entered into yet? I just wouldn't trust them. The stage you're at now they should be falling over themselves to look as awesome as possible so that you do sign!

Unfortunately that's what happens when you deal with Salesman, Independant brokers & people that work on huge commission$
They basically tell you whatever you want to hear in order to get that initial deposit & commitment from you
Then the builder tells you "......what does the salesman know...they aren't experts"
Checkmate...game over..builder wins
Do your homework before you commit

OT, As a engineer that does structural repairs
What hurts clients more than being ripped off is being told,
"...that costly repairs can't be easily fixed after your warranty period has expired"

I think you should stand your ground and ensure all errors are fixed before you sign the contract. I would also recommend pre contract review either with a lawyer specialising in building contracts or a very good building consultant.
There is no excuse for not getting the contract right and if you blink now there will be more crap going your way.
As a purchaser you have the power to walk away, once you sign the contract your power is gone.

The choices are simple
Sign the contract and deal with post-cost variations
or
Withdraw and lose your fees for the preparation of documentation ( 3-5% of the build price)
sadly, this wasn't explained to you by the salesman/broker/builder up front

I agree with ZoePath. Everything should be in place. Their ability is questionable if they are not able to amend this. Hope its settled now.

Cheers!
buildX

No, don't sign.

We were in a similar position and signed pending some post contract variations.
This caused further delays, and there ended up being some inconsistencies between what the contract (incl. PCVs) stated and what was on the floorplan.
The subsequent headaches this created could have been easily avoided if we'd only signed off on the one complete document.

Thank you everyone. I'll push back and report on the outcome.