Browse Forums Building A New House 1 Sep 05, 2021 11:52 am Hello Everyone, Need help! We signed HIA fixed price build contract couple of months back and got finance approved for our first home in SE QLD. Now, the builder says he can't honor the contract due to price rise and has sent the revised contract increasing the price by more than 15 grand. I can't afford the increase. Is it possible to get out of the contract? The only work done by the builder so far is the build plan and the soil test. I had paid initial deposit of $2000. Would I be required to pay more to cancel? Anyone been in the same boat, please advise. Thanks! Re: Terminate Build Contract 2Sep 05, 2021 1:25 pm It seems that the builder is reneging on the contract not you. I have heard another large builder cancelling contracts, refunding deposits+ 20k, for the same reasons, increased costs. However that puts the owner in another problem, how to get another builder. It won’t be at the same price. It seems that we will eventually have to have cost escalation clauses in the contracts as we did 30 years ago. 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: Terminate Build Contract 3Sep 06, 2021 11:18 pm Hi, My builder sent an email informing of and asking me to sign an increase to the contract price by 11k. It says that they can increase the price as the construction has not commenced within 45 days after signing the contract when the delay was not from the builder. We do not have any extra money to put towards the construction, so I wrote to them telling that we can't afford it. Still waiting for their response. We don't want to cancel the contract as all the builders have put their construction prices high, so we are trying to negotiate. Fingers crossed. Re: Terminate Build Contract 4Sep 10, 2021 11:18 am Dimu Hi, My builder sent an email informing of and asking me to sign an increase to the contract price by 11k. It says that they can increase the price as the construction has not commenced within 45 days after signing the contract when the delay was not from the builder. We do not have any extra money to put towards the construction, so I wrote to them telling that we can't afford it. Still waiting for their response. We don't want to cancel the contract as all the builders have put their construction prices high, so we are trying to negotiate. Fingers crossed. they should have told you that loop hole before you handed over any money You are also liable for all extra additional costs if you now pull out The reality is the costs have gone up twice that amount... you can thank the government stimulation grants for that at the upcoming election Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Terminate Build Contract 5Sep 28, 2021 1:02 pm Ash19 Hello Everyone, Need help! We signed HIA fixed price build contract couple of months back and got finance approved for our first home in SE QLD. Now, the builder says he can't honor the contract due to price rise and has sent the revised contract increasing the price by more than 15 grand. I can't afford the increase. Is it possible to get out of the contract? The only work done by the builder so far is the build plan and the soil test. I had paid initial deposit of $2000. Would I be required to pay more to cancel? Anyone been in the same boat, please advise. Thanks! Hi ash19 It is possible that the Builder is breaching or repudiating the Contract. With the current surge in material price, your experience is common at the moment. You probably should get legal advice from a construction lawyer so that you know your rights and options. There is a chance that your Builder is not entitled to the price increase. You could possibly improve your negotiating position if the Builder is at fault. Something worth considering. Cheers, John Get sound legal advice. We manage Building Disputes, Construction Contracts, Security of Payment. PM for queries. https://www.contractsspecialist.com.au/articles/ Re: Terminate Build Contract 6Sep 28, 2021 3:16 pm Contracts-Specialist Ash19 Hello Everyone, Need help! We signed HIA fixed price build contract couple of months back and got finance approved for our first home in SE QLD. Now, the builder says he can't honor the contract due to price rise and has sent the revised contract increasing the price by more than 15 grand. I can't afford the increase. Is it possible to get out of the contract? The only work done by the builder so far is the build plan and the soil test. I had paid initial deposit of $2000. Would I be required to pay more to cancel? Anyone been in the same boat, please advise. Thanks! Hi ash19 It is possible that the Builder is breaching or repudiating the Contract. With the current surge in material price, your experience is common at the moment. You probably should get legal advice from a construction lawyer so that you know your rights and options. There is a chance that your Builder is not entitled to the price increase. You could possibly improve your negotiating position if the Builder is at fault. Something worth considering. Cheers, John I love reading your advice John Thanks for the contribution Cheers Simeon Architectural Homes & Duplexes - specialising in custom designing homes to your budget Get a Free Onsite Consultation Today or send a PM for information, questions or advice. Re: Terminate Build Contract 7Sep 29, 2021 2:42 pm Thanks John and others for the response. I have told the builder I can't afford the increase and if he can't honor the contract we will have to cancel it. He said he will check and get back. How long do I need to wait for his response? Re: Terminate Build Contract 8Nov 03, 2021 4:41 pm Ash19 Thanks John and others for the response. I have told the builder I can't afford the increase and if he can't honor the contract we will have to cancel it. He said he will check and get back. How long do I need to wait for his response? Hi ash19 It depends on whether or not you wish to terminate the Contract mutually or pursuant to the Contract. If mutually, then there is no timeframe. I suppose you play this by ear on what seems appropriate in the circumstances. If pursuant to the Contract, then you should follow the Contract timeframes for the relevant termination clause. In both circumstances you might speak with a local solicitor or a construction lawyer to assist you with getting it right. Of course, terminating a contract is risky and getting it wrong may cause you to repudiate the Contract. Alternatively you might speak with the QBCC for assistance. Cheers, John Get sound legal advice. We manage Building Disputes, Construction Contracts, Security of Payment. PM for queries. https://www.contractsspecialist.com.au/articles/ Sorry but you have a crap builder. Probably too late now. For our last build I only spoke to builders who would allow me easy access (at no cost). I used my own sparky… 10 9821 Thank you so much everyone. This all makes a lot of sense. I guess when you talk to a builder who butters up everything to look very polished, you get to start believing… 7 17602 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16558 |