Builder asking us to sign and accept a contract variation

Marc171 · Nov 04, 2020 11:32 pm

Hi All

My builder is asking me to sign and accept a contraction variation which i believed would not be an issue if they have followed our land developer's design guidelines.

The builders are saying that it is my responsibility as a land owner to be accross design guidelines for my estate and it is not theirs. They are also insisting that the requirements required by our developer is additional as they do not have access to the Design Guidelines.

I have email trails which proves that they are aware of this design guideline and that they have not fully across it and are now passing the cost to us due to their oversight.

Anyone experiencing the same or have any advice?

Althom · Nov 05, 2020 2:37 pm

They don't have access to the Design Guidelines?
That sounds a tad strange.
You would have been provided with them when you purchased the land and I'm assuming you passed these on or they could have simply asked for them from the Developer.
What level of Variation are they asking for?

Marc171 · Nov 05, 2020 2:53 pm

Althom

They don't have access to the Design Guidelines?
That sounds a tad strange.
You would have been provided with them when you purchased the land and I'm assuming you passed these on or they could have simply asked for them from the Developer.
What level of Variation are they asking for?

Spot on. I find it a very flimsy excuse of passing the buck to us that they don't have the Design Guidelines. I have emailed them the guidelines at 2 separate occasions

They are asking a variation of at least $3,000 + for things that they have missed out on which they would not have missed out have they read the Design Guidelines.

Althom · Nov 05, 2020 3:19 pm

If you've got records of the correspondence then they don't have a leg to stand on. Typical builder trying it on. It's their job to be aware of everything that affects their build on their site and given you've provided the Guidelines than it's up to them to make sure they comply.

Just like it would be their job to comply with the BAL rating of your land.

Be prepared for them to throw one of their staff under the bus. If you were dealing with one of their Salespeople, for instance, when you forwarded the info be ready for them to claim "he didn't pass it on", "he didn't allow for it in costings", "he's no longer with the company".

Marc171 · Nov 05, 2020 3:43 pm

I have already complied a lenghty email to them outlining the situation. I will say, the evidence against them is very overwhelming. Will see what they say.

BuildingandLegal · Nov 05, 2020 10:54 pm

Actually you wear two hats, you are the purchaser of the land (Hat 1) but you also wear the Hat as the developer (Hat 2). You are engaging the Builder as the principal contractor but you are doing this as the developer of the project.
The builder is not a party to the land contract (unless they own & sell the land) it is your responsibility to provide all relevant documents affecting the Land that could impact the building, this actually also includes the likes of easements, BAL ratings etc, the Build Contract includes a section for "Owner disclosure" where you are meant to insert if a covenant is applicable. As the builder is not party to the land contract, they have no standing with the developer. Sorry, but you bought the problem "land with a covenant" so you are responsible for the covenant

Marc171 · Nov 05, 2020 11:11 pm

BuildingandLegal

Actually you wear two hats, you are the purchaser of the land (Hat 1) but you also wear the Hat as the developer (Hat 2). You are engaging the Builder as the principal contractor but you are doing this as the developer of the project.
The builder is not a party to the land contract (unless they own & sell the land) it is your responsibility to provide all relevant documents affecting the Land that could impact the building, this actually also includes the likes of easements, BAL ratings etc, the Build Contract includes a section for "Owner disclosure" where you are meant to insert if a covenant is applicable. As the builder is not party to the land contract, they have no standing with the developer. Sorry, but you bought the problem "land with a covenant" so you are responsible for the covenant

I have provided all relevant documents including Design Guidelines to them at the sales stage and prior to the contract signing stage. Have also told them that this needs to be complied with to obtain developer's approval for the purpose of being issued a building permit.

Not sure what you meant here by covenant though

BuildingandLegal · Nov 06, 2020 12:12 am

covenant = Design Guidelines

SejaeD · Nov 06, 2020 1:47 pm

BuildingandLegal

Actually you wear two hats, you are the purchaser of the land (Hat 1) but you also wear the Hat as the developer (Hat 2). You are engaging the Builder as the principal contractor but you are doing this as the developer of the project.
The builder is not a party to the land contract (unless they own & sell the land) it is your responsibility to provide all relevant documents affecting the Land that could impact the building, this actually also includes the likes of easements, BAL ratings etc, the Build Contract includes a section for "Owner disclosure" where you are meant to insert if a covenant is applicable. As the builder is not party to the land contract, they have no standing with the developer. Sorry, but you bought the problem "land with a covenant" so you are responsible for the covenant

quick question, arent the HIA contracts essentially design and construct contracts?

building-expert · Nov 07, 2020 1:36 pm

There is nothing preventing owner executing standard HIA building contract with the builder using own independently prepared plans and specifications, however in vast majority of cases project builders use them with their plans.

Althom · Nov 07, 2020 1:41 pm

BuildingandLegal

Actually you wear two hats, you are the purchaser of the land (Hat 1) but you also wear the Hat as the developer (Hat 2). You are engaging the Builder as the principal contractor but you are doing this as the developer of the project.
The builder is not a party to the land contract (unless they own & sell the land) it is your responsibility to provide all relevant documents affecting the Land that could impact the building, this actually also includes the likes of easements, BAL ratings etc, the Build Contract includes a section for "Owner disclosure" where you are meant to insert if a covenant is applicable. As the builder is not party to the land contract, they have no standing with the developer. Sorry, but you bought the problem "land with a covenant" so you are responsible for the covenant

As the OP has posted he has provided all relevant documents and has the communications trail to prove it