Browse Forums Building A New House 1 Jan 16, 2023 11:17 pm Hi All, I need your guidance. I signed my with sherridon homes last Apr 22 to build a home for my titled land. It's been 9 months and now they are in approval stage. However, now they come and ask for additional 8k increase to base price contract. When I signed up they told me it's fixed bid contract and price will never go up once signed. However, recently understood it was all marketing gimmick and there is no fixed bid contract after reading my hia contract. So far I have paid 13.5k. Builder states if I don't sign up the price increase they will cancel the contract. Now I need your guidance, if they cancel how much deposit will I lose? I have read so much bad reviews about Sherridon homes and I want to get out of the contract even if I lose 3 or 4k. I felt it's better to walk away now instead of spending all the money and lose my peace with Sherridon homes. Please suggest. Regards, Ram Re: Sherridon Homes asking for more money after 10 months of 2Jan 17, 2023 7:15 am ramcp14 Hi All, I need your guidance. I signed my with sherridon homes last Apr 22 to build a home for my titled land. It's been 9 months and now they are in approval stage. However, now they come and ask for additional 8k increase to base price contract. When I signed up they told me it's fixed bid contract and price will never go up once signed. However, recently understood it was all marketing gimmick and there is no fixed bid contract after reading my hia contract. So far I have paid 13.5k. Builder states if I don't sign up the price increase they will cancel the contract. Now I need your guidance, if they cancel how much deposit will I lose? I have read so much bad reviews about Sherridon homes and I want to get out of the contract even if I lose 3 or 4k. I felt it's better to walk away now instead of spending all the money and lose my peace with Sherridon homes. Please suggest. Regards, Ram Depends on how much work they've already done that they can claim from the original deposit. Though don't assume you'll get it cheaper or be able to avoid a similar or a larger price increase if you start again with somone else. Base prices have been going up monthly with every builder as have the prices of their upgrades. Running after an 8k increase could see you paying in excess of that and more for less with somone else at this stage. 8k is fairly small in comparison to some who've been copping I excess of 100k. Re: Sherridon Homes asking for more money after 10 months of 3Jan 17, 2023 9:21 am Hey ramcp14 Welcome to the forum The contract can only be changed by variations Have you done your final engineering and construction Cds What about selection variation changes? Question are you likely to cop another price variation further down the track You'll need to get professional advice as to where you stand Cheers Chris Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Sherridon Homes asking for more money after 10 months of 4Jan 17, 2023 12:44 pm Thanks both for you response. They are just working on approval. Still under pre construction stage. My issue is what if I pay the price they request and they ask more money in the next few months without starting the construction. Also I have been hearing loads of complaints about the builder for post care support with so much defects not being rectified. So kinda skeptical to continue with them because of the reviews I read through. This is not first time they asked money. Before this they asked 4k to achieve 6 star energy rating which in contract they included as default. Then after argument they let it off. I am meeting a lawyer today. However, wanted to check if any one has got any experience and looking for some guidance. Regards, Ram Re: Sherridon Homes asking for more money after 10 months of 5Jan 17, 2023 1:06 pm ramcp14 Thanks both for you response. They are just working on approval. Still under pre construction stage. My issue is what if I pay the price they request and they ask more money in the next few months without starting the construction. Also I have been hearing loads of complaints about the builder for post care support with so much defects not being rectified. So kinda skeptical to continue with them because of the reviews I read through. This is not first time they asked money. Before this they asked 4k to achieve 6 star energy rating which in contract they included as default. Then after argument they let it off. I am meeting a lawyer today. However, wanted to check if any one has got any experience and looking for some guidance. Regards, Ram You will find your contract includes several clauses for price increases. This is standard. What isnt standard is builders having had to rely on them regularly as they have been. Some builders have been milking it others have been delivering without asking for more money. This is usually (not always, but usually) a factor of how much you are actually paying for a build. e.g. If you have gone for a volume builder vs a custom builder. Volume builders are trying to beat each other on price and operating on thin margins, hence are susceptible to price fluctuations vs Custom builders who build fluctuation risks into their pricing. Some custom will still require variations in extreme cases. Re: Sherridon Homes asking for more money after 10 months of 6Jan 17, 2023 1:07 pm ramcp14 Thanks both for you response. They are just working on approval. Still under pre construction stage. My issue is what if I pay the price they request and they ask more money in the next few months without starting the construction. Also I have been hearing loads of complaints about the builder for post care support with so much defects not being rectified. So kinda skeptical to continue with them because of the reviews I read through. This is not first time they asked money. Before this they asked 4k to achieve 6 star energy rating which in contract they included as default. Then after argument they let it off. I am meeting a lawyer today. However, wanted to check if any one has got any experience and looking for some guidance. Regards, Ram we've been asked for extra 18k or so just before the construction start, which isn't much considering the overall cost of the build. our contract had a clause allowing them to do so in certain circumstances. while the fact that those circumstances arose was entirely their fault, we chose to swallow it so that the construction finally starts and we don't spend another year or two going through the whole process all over again. you probably won't save any money by parting your ways with current builder (unless you're happy to wait couple of years until the construction boom is over and everyone is out looking for jobs) but you might end up with a better quality product. Re: Sherridon Homes asking for more money after 10 months of 7Jan 17, 2023 1:12 pm strannik unless you're happy to wait couple of years until the construction boom is over and everyone is out looking for jobs) but you might end up with a better quality product. no guarantee of that either. unfortunately no one has a crystal ball. when interest rates were 17% in the 90's people were telling other people not to buy houses. In 2008, people were telling people again not to buy houses. We cant use those events to attribute a future benefit should we build/buy now, but what those events show is that things are uncertain, and even the smartest minds aren't entirely sure what will happen and when. basically, you do you. If youre in the market for a house to live in long term, there really isn't a bad time to do it. If you're investing for the short to medium term, then you may have a plethora of risks to consider. Re: Sherridon Homes asking for more money after 10 months of 8Jan 17, 2023 4:50 pm What is the increase for? Re: Sherridon Homes asking for more money after 10 months of 10Jan 17, 2023 4:52 pm ponzutwo Matevieflick What is the increase for? It will be due to an increase in cost of materials, or so the builder will say They need to specify though yeah? Re: Sherridon Homes asking for more money after 10 months of 11Jan 17, 2023 4:53 pm Matevieflick ponzutwo Matevieflick What is the increase for? It will be due to an increase in cost of materials, or so the builder will say They need to specify though yeah? Vaguely, sure, why not. Re: Sherridon Homes asking for more money after 10 months of 12Jan 17, 2023 4:57 pm ponzutwo Matevieflick ponzutwo It will be due to an increase in cost of materials, or so the builder will say They need to specify though yeah? Vaguely, sure, why not. It will depend on the special clauses in contract as to if they can do this. Otherwise the builder wears the extra cost. Re: Sherridon Homes asking for more money after 10 months of 13Jan 17, 2023 5:05 pm Matevieflick ponzutwo Matevieflick They need to specify though yeah? Vaguely, sure, why not. It will depend on the special clauses in contract as to if they can do this. Otherwise the builder wears the extra cost. First time building? There are standard clauses in building contracts that already allow for a contract price increases to a % of the contract price, even in fixed price contracts. There are also clauses that let a builder cancel a contract if variations that are required aren't agreed to. The key is you can't prove those cost variations aren't required. So your only option at that point is cancel and lose some/all deposit, agree to the variation and wear the cost, or engage a lawyer with zero guarantee of a positive outcome. Given the contracts are already pretty watertight(given lawyers created them) the last option tends to be the most expensive. Because you end up losing your deposit, paying a lawyer and paying new inflated prices at another builder anyway. Sometimes it's just cheaper to accept the variation. Not great, but these are the times we are building in. It's worth noting all of this can happen whether you own the design or not btw. This is why there's a lot of people up $hit Creek these days. Re: Sherridon Homes asking for more money after 10 months of 14Jan 17, 2023 5:26 pm ponzutwo Matevieflick ponzutwo Vaguely, sure, why not. It will depend on the special clauses in contract as to if they can do this. Otherwise the builder wears the extra cost. First time building? There are standard clauses in building contracts that already allow for a contract price increases to a % of the contract price, even in fixed price contracts. There are also clauses that let a builder cancel a contract if variations that are required aren't agreed to. The key is you can't prove those cost variations aren't required. So your only option at that point is cancel and lose some/all deposit, agree to the variation and wear the cost, or engage a lawyer with zero guarantee of a positive outcome. Given the contracts are already pretty watertight(given lawyers created them) the last option tends to be the most expensive. Because you end up losing your deposit, paying a lawyer and paying new inflated prices at another builder anyway. Sometimes it's just cheaper to accept the variation. Not great, but these are the times we are building in. It's worth noting all of this can happen whether you own the design or not btw. This is why there's a lot of people up $hit Creek these days. Can you give me an example of a variation that would add to cost and not actually be required for a build? Re: Sherridon Homes asking for more money after 10 months of 15Jan 17, 2023 6:04 pm Matevieflick ponzutwo Matevieflick It will depend on the special clauses in contract as to if they can do this. Otherwise the builder wears the extra cost. First time building? There are standard clauses in building contracts that already allow for a contract price increases to a % of the contract price, even in fixed price contracts. There are also clauses that let a builder cancel a contract if variations that are required aren't agreed to. The key is you can't prove those cost variations aren't required. So your only option at that point is cancel and lose some/all deposit, agree to the variation and wear the cost, or engage a lawyer with zero guarantee of a positive outcome. Given the contracts are already pretty watertight(given lawyers created them) the last option tends to be the most expensive. Because you end up losing your deposit, paying a lawyer and paying new inflated prices at another builder anyway. Sometimes it's just cheaper to accept the variation. Not great, but these are the times we are building in. It's worth noting all of this can happen whether you own the design or not btw. This is why there's a lot of people up $hit Creek these days. Can you give me an example of a variation that would add to cost and not actually be required for a build? Any variation. Builder tells you our framer is charging more (when theyre not). You say prove it. They show you a shiny invoice. You ring the framer, the framer says can't discuss commercial information with anyone other than their client. Boom. A variation that added cost without being actually needed. Now replace framer with any other supplier. It's a losing game to play Re: Sherridon Homes asking for more money after 10 months of 16Jan 17, 2023 6:10 pm The increase of supply, labour, and material, no longer covers the build of your home and we will not be able to take you to site, based on rates from March 2022. There is no specific breakdown that construction or the General Manager of Construction can give us, as they do not and will not provide price specific breakdowns. Every builder’s breakdown will be different to each other depending on their own industry relations and agreements, which cannot be legally given out due to those agreements. The cost covers your standard inclusions, tradies required for the build of the home, supplies available to us and materials you have in your standard inclusions. If you require examples, the price difference of $7,919 covers: Timber Standard Fixings throughout the home (send this in an email attachment which has your standard inclusions, explain everything listed in the standard inclusions has had an increase and does not cost the same). Carpenters Tilers Electricians & Electrical External Features Other required trades Internal Features Plumbing & Plumbers Everything industry wide required to build a home has risen in pricing, supplies are low and most builders, unlike Sherridon do not have relationships to retain supplies and labour required to take clients to site. We are lucky to have great industry relationships with our suppliers, but supplies, materials and trades come at a higher cost that the original base price from (whenever they signed) cannot cover to successfully take you to site. This was the msg from them Re: Sherridon Homes asking for more money after 10 months of 17Jan 17, 2023 6:27 pm ponzutwo Matevieflick ponzutwo First time building? There are standard clauses in building contracts that already allow for a contract price increases to a % of the contract price, even in fixed price contracts. There are also clauses that let a builder cancel a contract if variations that are required aren't agreed to. The key is you can't prove those cost variations aren't required. So your only option at that point is cancel and lose some/all deposit, agree to the variation and wear the cost, or engage a lawyer with zero guarantee of a positive outcome. Given the contracts are already pretty watertight(given lawyers created them) the last option tends to be the most expensive. Because you end up losing your deposit, paying a lawyer and paying new inflated prices at another builder anyway. Sometimes it's just cheaper to accept the variation. Not great, but these are the times we are building in. It's worth noting all of this can happen whether you own the design or not btw. This is why there's a lot of people up $hit Creek these days. Can you give me an example of a variation that would add to cost and not actually be required for a build? Any variation. Builder tells you our framer is charging more (when theyre not). You say prove it. They show you a shiny invoice. You ring the framer, the framer says can't discuss commercial information with anyone other than their client. Boom. A variation that added cost without being actually needed. Now replace framer with any other supplier. It's a losing game to play Pretty sure they can't do that. It's legit only for structual changes house needs. People need to stand up to these builders. The industry is so corrupt and they bully people. If it's fixed price they can't just add random stuff unless it has the new covid clause in it. Re: Sherridon Homes asking for more money after 10 months of 18Jan 17, 2023 6:31 pm ramcp14 The increase of supply, labour, and material, no longer covers the build of your home and we will not be able to take you to site, based on rates from March 2022. There is no specific breakdown that construction or the General Manager of Construction can give us, as they do not and will not provide price specific breakdowns. Every builder’s breakdown will be different to each other depending on their own industry relations and agreements, which cannot be legally given out due to those agreements. The cost covers your standard inclusions, tradies required for the build of the home, supplies available to us and materials you have in your standard inclusions. If you require examples, the price difference of $7,919 covers: Timber Standard Fixings throughout the home (send this in an email attachment which has your standard inclusions, explain everything listed in the standard inclusions has had an increase and does not cost the same). Carpenters Tilers Electricians & Electrical External Features Other required trades Internal Features Plumbing & Plumbers Everything industry wide required to build a home has risen in pricing, supplies are low and most builders, unlike Sherridon do not have relationships to retain supplies and labour required to take clients to site. We are lucky to have great industry relationships with our suppliers, but supplies, materials and trades come at a higher cost that the original base price from (whenever they signed) cannot cover to successfully take you to site. This was the msg from them Do you have a rise and fall clause in your contract? Re: Sherridon Homes asking for more money after 10 months of 19Jan 17, 2023 6:34 pm Matevieflick ramcp14 The increase of supply, labour, and material, no longer covers the build of your home and we will not be able to take you to site, based on rates from March 2022. There is no specific breakdown that construction or the General Manager of Construction can give us, as they do not and will not provide price specific breakdowns. Every builder’s breakdown will be different to each other depending on their own industry relations and agreements, which cannot be legally given out due to those agreements. The cost covers your standard inclusions, tradies required for the build of the home, supplies available to us and materials you have in your standard inclusions. If you require examples, the price difference of $7,919 covers: Timber Standard Fixings throughout the home (send this in an email attachment which has your standard inclusions, explain everything listed in the standard inclusions has had an increase and does not cost the same). Carpenters Tilers Electricians & Electrical External Features Other required trades Internal Features Plumbing & Plumbers Everything industry wide required to build a home has risen in pricing, supplies are low and most builders, unlike Sherridon do not have relationships to retain supplies and labour required to take clients to site. We are lucky to have great industry relationships with our suppliers, but supplies, materials and trades come at a higher cost that the original base price from (whenever they signed) cannot cover to successfully take you to site. This was the msg from them Do you have a rise and fall clause in your contract? Like ⋅ Add a comment ⋅ Pin to Ideaboard ⋅ Like ⋅ Add a comment ⋅ Pin to Ideaboard ⋅ "but certainly not to the extend of $85,000" - Certainly not chump change I would be questioning what they did which resulted in this blowout and get it all… 5 6535 Our external decking was only installed 2 months ago, and already moulded, with cracks, and some timber decolorated. The decking is in an exposed area, uncovered in our… 0 3949 |