Browse Forums Building A New House 1 Feb 22, 2021 8:53 pm In our new build contract, there are a number of provisional sum items which have an allowance stated next to it. Does the builder have to provide copies of actual invoices to show that the actual costs are more or less than the contract price? Or do they give an invoice and you trust that it is what they said it cost? Re: Provisional Sum Items - Actual cost v contract provision 2Feb 23, 2021 7:43 am This is the law in Victoria I am not familiar with NSW but would expect it to be much the same The bottom line is that PS is not builder's money it's your and the builder must account for the expenditure DOMESTIC BUILDING CONTRACTS ACT 1995 - SECT 23 Builder must supply evidence of cost of prime cost items and provisional sums A builder must give the building owner a copy of any invoice, receipt or other document that shows the cost to the builder of any prime cost item, or that relates to any provisional sum, in a domestic building contract and must do so as soon as practicable after receiving the invoice, receipt or document. Penalty: 20 penalty units. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Provisional Sum Items - Actual cost v contract provision 4Feb 24, 2021 12:40 am done Yes that's exactly what I'm after, but for NSW. Builder is refusing to provide invoices claiming it's commercially sensitive. They have to though if it’s written in as a provisional sum item. Any chance you can say who they are. To be honest a lot of builders don’t know how to read the contract them self and then have staff not actually trained to read them either. Re: Provisional Sum Items - Actual cost v contract provision 5Feb 24, 2021 5:17 am Don't believe it, they know exactly how to read the contract and are experts at taking and banking your money. If they don't know how to read the contract they should not be registered. Commercial sensitivity ? BS, do you believe in fairies? Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Provisional Sum Items - Actual cost v contract provision 6Feb 24, 2021 7:08 am It's commercially sensitive because if you learn how much they're ripping you off you'd go elsewhere, thus impacting their commercial activities Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: Provisional Sum Items - Actual cost v contract provision 7Feb 24, 2021 2:20 pm No I don't believe in fairies. I can google a HIA FAQ type document but can't view it to see what it says on the topic, and I have tried to look for the NSW legislation that covers this and can find it. What would your response be to this reply to a request for copies of documentation then? In regard to the request of copy of invoices in reference to claim xxx we advise that these documents are commercially sensitive and we do not allow these invoices from our trades to be copied or to leave our office. If you would like to meet in the office I can arrange to have these documents available for yourselves to view. Your viewing of these documents can only be on a confidential basis. In regard to the request for copies of any dilapadition reports to neighbours or adjoining property owners we advise that these reports can not be shared due to privacy concerns. Once again you are free to view the invoice for these said reports. Re: Provisional Sum Items - Actual cost v contract provision 8Feb 24, 2021 2:39 pm they're offering you to see the invoices. They just don't want to send you copies. What's the problem? If you wanted to verify the invoices if you suspect they were bunk, you could call the company while you are in the builders office viewing the invoice and ask them if the figures match right in front of the builder. Would be funny AF. Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: Provisional Sum Items - Actual cost v contract provision 9Feb 24, 2021 2:42 pm that said they cant on one hand claim commercial sensitivity and then offer you to view them, its contradictory. In anycase, go to their office and vie wthe invoices. if you have concerns to their legitimacy follow up with the vendor. Take a note of the invoice number, date and amount on your phones note pad. Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: Provisional Sum Items - Actual cost v contract provision 10Feb 24, 2021 2:50 pm It's not convenient to go to their office and if they are required to provide them, then I would just like to have something like the act above that is relevant for NSW to show them. Thanks. Re: Provisional Sum Items - Actual cost v contract provision 11Feb 24, 2021 3:33 pm have you got a pdf copy of the building contract? Is it a HIA contract or a NSW Home building contract for work over $20,000? if its the NSW home building contract, check clause 11 - The contractor must provide a copy of any relevant invoice, receipt or other document evidencing the purchase price of the item at the time payment is requested. If the contractor purchases a prime cost item, any discount for prompt payment will be allowed in favour of the contractor. All written warranties for such items must be given to the owner on completion of the work and must be enforceable by the owner If its a HIA contact, i dont have one handy. if you have a PDF version, search the document. If its an image PDF file and cant be searched, read it. Short of that you will need to seek some independent advice if you really need more. The NSW acts dont have a domestic building contracts act like VIC does AFAIK, and their home building Act doesn't cover what you're looking for. Though given that there is something about invoice evidence in the NSW contract itself, there should be something somewhere in some legislation that supports this. Conversely perhaps there isnt, and if it isnt in the HIA contract, you may be sht out of luck. As to convenience, well you'll have to decide if its more convenient for you to get bent over or take a drive to the builders office. Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: Provisional Sum Items - Actual cost v contract provision 13Feb 24, 2021 7:47 pm So.......Did you need me to turn the pages for you? Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: Provisional Sum Items - Actual cost v contract provision 14Feb 24, 2021 8:20 pm Noname ........ you could call the company while you are in the builders office viewing the invoice and ask them if the figures match right in front of the builder. Would be funny AF. What's funnier is when the client turns up on site to inspect the variation and says to the tradie "I paid Top Dollar for that....." and the tradie says " Show me the variation... I didn't get any of it..." Ouch Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs How to calculate provision sum and margin? We are nearing completion and have received the final invoice which includes unexpected expenses for provisioned items. The… 0 12893 Sorry to hear. All the advice you are going to get on this one comes down to what your contract says and what variations are allowed and the mechanism for them. For… 1 11196 At which stage should I prepare for this, presumably post-handover at the landscaping design stage? But should the sparky provision for this when he does the rough in? I… 0 5706 |