Browse Forums Building A New House 1 Sep 01, 2021 11:26 am Hi - we are in Vic and would like to understand whether the final payment is due as soon as the occupancy permit is issued? We were advised by the building authority that if there are any claims to be made against the builder then it should have been done before the occupancy permit being issued? There are defects and items not built to plan which I’m aware is not in the surveyor’s remit so we feel a little lost. We’ve raised these issues a number of times with the builder and they are not interested and not answering our calls. Keen to understand who can help determine the cost to fix defects for items that are not built to plan - and also keen to understand the steps we need to take to somewhat try and hold the builder accountable (not sure if we can). What are the considerations if the builder is issued with the occupancy permit, but the house isn’t built to building standards or plans and they threaten to charge us interest if we don’t pay the final payment, knowing there are issues to resolve/fix. Do we just pay and take this up later (there’s interest on loan, loss of rent etc that we need to weigh up) or do we hold off final payment and if so, how? Re: Building a house - final payment 2Sep 01, 2021 12:52 pm You should raise a formal dispute, following exactly the procedures detailed in your contract. Give the builder an opportunity to respond formaly. Keep everthing in writing. Consider carefully your financial and emotional costs of further delay and dispute actions. Making the final payment does not mean legally you have accepted the defects. You can pursue rectifications later via VCAT etc and social media. Yours is a common situation, most customers have no options and just pay up. Builders leverage this customer position. Re: Building a house - final payment 3Sep 01, 2021 2:45 pm Kippers01 thank you so much for your response. We feel so helpless knowing that there is not much we can do other than to pay up but it’s good to know that you can still pursue after you pay and get the keys. The only risk is they may not come to the party once paid. Re: Building a house - final payment 4Sep 01, 2021 3:12 pm Yes. It seems they have no intention to do anything more before they are paid, let alone afterwards. Its important you follow all the appropriate and reasonable procedural steps now to position yourself to be able to take action later, should you choose to do so. Re: Building a house - final payment 5Sep 01, 2021 3:42 pm Builders are still on the hook for defects after you pay. For several years. The challenge is getting them to do anything about it. Kippers is right, social media, product review, vcat are all options available to you. Though I'd be mindfull what you would considder a defect vs what is an actual defect. When you say not built to plan, do you have any examples? Did you use a private inspector for stage inspections? Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: Building a house - final payment 6Sep 02, 2021 6:20 pm Agree with Kippers1 by writing a formal letter to the builder. If no response, complaint to the regulator. You can find information on the Consumer Affairs Victoria website including an example letter that can be sent to the builder. https://www.consumer.vic.gov.au/housing/building-and-renovating/defects-delays-and-insolvency Re: Building a house - final payment 7Sep 02, 2021 6:24 pm [quote="Harts":3j8ll9wi]Agree with Kippers1 by writing a formal letter to the builder. If no response, complaint to the regulator. You can find information on the Consumer Affairs Victoria website including an example letter that can be sent to the builder. [url=https://www.consumer.vic.gov.au/housing/building-and-renovating/defects-delays-and-insolvency:3j8ll9wi]https://www.consumer.vic.gov.au/housing/building-and-renovating/defects-delays-and-insolvency[/url:3j8ll9wi][/quote:3j8ll9wi] Sorry it's passed this. Did you not read the bit where they've been served? They are being sued. There are two options, settle/negotiate or go to court. Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: Building a house - final payment 8Sep 03, 2021 8:12 am Thanks so much everyone for you amazing support and insights. The builder had claimed the last fix stage was completed months ago but we weren’t allowed to check completion at the time. Again threatened so we just paid. In the meantime they’ve been working on finalising the joinery and there are still joinery missing but at the same time they’re getting occupancy permit. Meanwhile we’re funding the bank interest for a build stage that hasn’t been completed but paid for. It’s been a horrible and helpless experience but thanks again everyone for your support. Re: Building a house - final payment 11Sep 03, 2021 11:32 pm Has anyone experienced a builder charging interest for their final payment? Do they send you a separate claim once they hand over the keys? Any insights on the process would be greatly appreciated! Re: Building a house - final payment 12Sep 04, 2021 12:31 am GHEG Has anyone experienced a builder charging interest for their final payment? Do they send you a separate claim once they hand over the keys? Any insights on the process would be greatly appreciated! If you're being sued, it's because you're in breach of contract. Theres likley clauses in your contract relating to default interest in this type of scenario. Asside from all the drama going on, you still have contractual obligations. Have you read your contract or had somone explain it to you? Have you engaged a lawyer yet? Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: Building a house - final payment 13Sep 06, 2021 3:08 pm In the letter you received from your builder, it will state when the final payment is due, in my case my builder said 3-5 days from pre handover inspection date. If you found defects or incomplete works on your pre handover inspection, inform the builder about this and tell them you're holding off final payment until all issues are fixed. 1 defect and few issues were found on my house build so I told my builder I am not moving in and not authorising final payment until all the issues are fixed. Re: Building a house - final payment 14Sep 28, 2021 12:57 pm GHEG Hi - we are in Vic and would like to understand whether the final payment is due as soon as the occupancy permit is issued? We were advised by the building authority that if there are any claims to be made against the builder then it should have been done before the occupancy permit being issued? There are defects and items not built to plan which I’m aware is not in the surveyor’s remit so we feel a little lost. We’ve raised these issues a number of times with the builder and they are not interested and not answering our calls. Keen to understand who can help determine the cost to fix defects for items that are not built to plan - and also keen to understand the steps we need to take to somewhat try and hold the builder accountable (not sure if we can). What are the considerations if the builder is issued with the occupancy permit, but the house isn’t built to building standards or plans and they threaten to charge us interest if we don’t pay the final payment, knowing there are issues to resolve/fix. Do we just pay and take this up later (there’s interest on loan, loss of rent etc that we need to weigh up) or do we hold off final payment and if so, how? Hi gheg You need to read your particular contract. Often, the contract prescribes upon completion of the stage of work that payment is due. You will need to identify whether or not that event (as defined in the Contract) has occurred. Also, if you refuse to pay the Builder then practically speaking, the Builder may refuse to handover the property to you. That is, provide you with certificates and permit so that you can lawfully occupy the property. I guess these are contractual and practical considerations. It might be best to get legal advice, a construction lawyer construction lawyer could possibly help. Cheers, John Get sound legal advice. We manage Building Disputes, Construction Contracts, Security of Payment. PM for queries. https://www.contractsspecialist.com.au/articles/ regardless, your contract stipulates a payments schedule and SOPA doesn't give provision to that scenario. Your contractual terms appear to stand. Hence get a lawyer, it… 4 11878 There is no reason why building contract reconciliation cannot be done prior to handover, if the builder won't do it get someone to do it for you. Why would you pay for… 3 6690 1) I had requested R6 ceiling insualtion batts, however I noticed that on some areas there are huge gaps which will allow hot air to sweep in, and also noticed black/grey… 0 3603 |