Please all my builder friends I need help with a Provisional sum question. Do you pay 20% builders margin on the including GST or excluding GST amount? Also they are claiming a $500 variation fee on a PS!
Provisional Sum in contract $2000
Underfloor heating installation invoice was $1010 plus GST $101 Total $1111
The heat kits plus delivery fee $838.60 plus GST $83.86 Total $922.46
The builder has invoiced us in Total $2033.46
Less $2000 = $33.46
Plus 20% = $6.832 Total $40.15
Plus variation fee $500 = $540.15 inc
Shouldn’t you just pay 20% on supply and install $1848.60
And no variation fee.
The builder is currently 7 months over finish date and don’t want to pay any liquidated damages!
They had forgotten every upgrade in our build and had to retrofit them!