Browse Forums Building A New House 1 Jun 19, 2021 2:09 am Hi everyone, this is my first post, relating to the very first home I've ever built. On speaking with a builder, they want me to sign a 'Base Price Extension Agreement'. They state that this does a few things: 1) Locks in the build price 2) Covers them for the cost of inflation, should something happen outside of thier control that prevents them starting 3) Covers me for the cost of the build - so that there won't be any 'surprises', and I will know what costs to expect. I am wondering if any of you had to sign this? What builder were you with, and did it come back to bite you in the bum later? The cost is quite significant (as you will see from the form below), starting at ~$1000 in February 2022, and then increasing by ~$1000 per month thereafter until building starts. This potentially could cost over $30,000 if there is a delay, until the contract is able to be reviewed. This form kind of freaks me out. I phoned another builder and they stated they don't do this. I phoned the Master Builders Assoc, but they wouldn't provide me any info on if this is standard, and I phoned Fair Trade, but they didn't really have an answer. Any info you guys can provide would be greatly appreciated. Like ⋅ Add a comment ⋅ Pin to Ideaboard ⋅ Re: Base Price Extension Agreement 2Jun 19, 2021 9:46 am Hey Jaccc Welcome to the forum The WA Govt regulators are already warning battlers "caveat emptor (Buyer beware)" WA watchdog sounds warning to home builders over increases Seek legal advice Cheers Chris Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Base Price Extension Agreement 3Jun 30, 2021 8:49 pm StructuralBIMGuy Hey Jaccc Welcome to the forum The WA Govt regulators are already warning battlers "caveat emptor (Buyer beware)" WA watchdog sounds warning to home builders over increases Seek legal advice Cheers Chris Hey StructuralBIMGuy, Thanks for your welcome. Yes, I'm aware of the warning of 'surprise price increases' after building has commenced. This is a little different I feel, as it is notifying you in advance of the possible cost increase, and it's only if the building can't start for some unforseen circumstance, but i just wasn't sure if other people have seen it, or how often it is invoked. thanks for the heads up though. In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 4831 Hi All, We signed a prelim agreement last year (May 2022) and paid deposit to a builder. However, we didn't go ahead with them and never signed a contract. We ended going… 0 2314 You need to respond to the Builder within 10 business day advising of your rejection of claim as per SoPA on a payment Schedule, Do not miss this deadline. 3 7295 |