hi Guys ,
i have just received the HIA contract from our builder for review. There were a couple of things I found interesting and wanted to check if these are standard. Would appreciate any feedback :
- Contract notes that all cost of electricity and water usage during the build will be borne by us.
- Liquidated damages offered is minimal. I will be negotiating this with them but wondering what a fair amount is.
- installation of appliances- kitchen appliances, hot water system, air conditioning motor will be done after final payment has been received- on the day of handover .Practical completion is not subject to appliance installation. - is this normal ?
- Progress payment to be made within 5 working days of builder giving the claim.
- builder is not required to obtain occupancy certificate or final inspection certificate .
HIA contract advice
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The Water and Electricity charges are standard to be paid for by client, not sure about the others as your not in WA I would say.
Thanks
The Water and Electricity charges are standard to be paid for by client, not sure about the others as your not in WA I would say.
- installation of appliances- kitchen appliances, hot water system, air conditioning motor will be done after final payment has been received- on the day of handover .Practical completion is not subject to appliance installation. - is this normal ?
Yes this is normal to prevent thief during the build. Not sure about the others
Pretty much normal with all builders, appliances etc to stop theft (as advised by Bobjane) water/electricity normal (as per Doozer)
LD's are always low as this covers the builders from an expensive loss if they have site issues, my experience is if you increase the LD daily limit, they simply add extra weeks into the contract, progress claims is standard, but make sure the work is complete before you sign off on it (read the description of the claim in the contract) and Final OC cannot be achieved unless all you landscaping is in place, unless your builder is doing the full turn key package then this is normal
LD's are always low as this covers the builders from an expensive loss if they have site issues, my experience is if you increase the LD daily limit, they simply add extra weeks into the contract, progress claims is standard, but make sure the work is complete before you sign off on it (read the description of the claim in the contract) and Final OC cannot be achieved unless all you landscaping is in place, unless your builder is doing the full turn key package then this is normal
Thanks GrahamB
All the items make sense . Just a bit worried about the fact that we will need to handover the last cheque prior to all appliances being installed . What happens if the installation isn’t done after the cheque is paid or is delayed . We’ve already paid all the money , I don’t know how accountable they will be after that . So essentially we’ll be accepting pci and handover without the property being complete . Would we be able to get an interim occupancy certificate without appliances ? Not too sure about that either . Maybe I’m reading too much into it haha
quote="GrahamB"]Pretty much normal with all builders, appliances etc to stop theft (as advised by Bobjane) water/electricity normal (as per Doozer)
LD's are always low as this covers the builders from an expensive loss if they have site issues, my experience is if you increase the LD daily limit, they simply add extra weeks into the contract, progress claims is standard, but make sure the work is complete before you sign off on it (read the description of the claim in the contract) and Final OC cannot be achieved unless all you landscaping is in place, unless your builder is doing the full turn key package then this is normal[/quote]
All the items make sense . Just a bit worried about the fact that we will need to handover the last cheque prior to all appliances being installed . What happens if the installation isn’t done after the cheque is paid or is delayed . We’ve already paid all the money , I don’t know how accountable they will be after that . So essentially we’ll be accepting pci and handover without the property being complete . Would we be able to get an interim occupancy certificate without appliances ? Not too sure about that either . Maybe I’m reading too much into it haha
quote="GrahamB"]Pretty much normal with all builders, appliances etc to stop theft (as advised by Bobjane) water/electricity normal (as per Doozer)
LD's are always low as this covers the builders from an expensive loss if they have site issues, my experience is if you increase the LD daily limit, they simply add extra weeks into the contract, progress claims is standard, but make sure the work is complete before you sign off on it (read the description of the claim in the contract) and Final OC cannot be achieved unless all you landscaping is in place, unless your builder is doing the full turn key package then this is normal[/quote]
Thanks GrahamB
All the items make sense . Just a bit worried about the fact that we will need to handover the last cheque prior to all appliances being installed . What happens if the installation isn’t done after the cheque is paid or is delayed . We’ve already paid all the money , I don’t know how accountable they will be after that . So essentially we’ll be accepting pci and handover without the property being complete . Would we be able to get an interim occupancy certificate without appliances ? Not too sure about that either . Maybe I’m reading too much into it haha
quote="GrahamB"]Pretty much normal with all builders, appliances etc to stop theft (as advised by Bobjane) water/electricity normal (as per Doozer)
LD's are always low as this covers the builders from an expensive loss if they have site issues, my experience is if you increase the LD daily limit, they simply add extra weeks into the contract, progress claims is standard, but make sure the work is complete before you sign off on it (read the description of the claim in the contract) and Final OC cannot be achieved unless all you landscaping is in place, unless your builder is doing the full turn key package then this is normal
All the items make sense . Just a bit worried about the fact that we will need to handover the last cheque prior to all appliances being installed . What happens if the installation isn’t done after the cheque is paid or is delayed . We’ve already paid all the money , I don’t know how accountable they will be after that . So essentially we’ll be accepting pci and handover without the property being complete . Would we be able to get an interim occupancy certificate without appliances ? Not too sure about that either . Maybe I’m reading too much into it haha
quote="GrahamB"]Pretty much normal with all builders, appliances etc to stop theft (as advised by Bobjane) water/electricity normal (as per Doozer)
LD's are always low as this covers the builders from an expensive loss if they have site issues, my experience is if you increase the LD daily limit, they simply add extra weeks into the contract, progress claims is standard, but make sure the work is complete before you sign off on it (read the description of the claim in the contract) and Final OC cannot be achieved unless all you landscaping is in place, unless your builder is doing the full turn key package then this is normal
[/quote] Builders have been doing it for years, I am unsure as to who your builder is whilst I write this, however they are obligated contractually to install them, and you are unable to get an interim if cooking is not in place
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