Private inspector charge by builder

sam028 · Jul 11, 2023 5:59 pm

Hi,
We are about to begin our of our home in Victoria and we were planning on hiring a private inspector for pre-slab, frame, lock up and handover stages of the build. We've just received an email from our builder regarding their Private Inspection Policy which states "To engage a private inspector there will be a charge of $1,000 plus GST per inspection booked in. This covers supervisor fees and company fees for the time spent on each report."

Has this happened to anyone else before. It seems a little ridiculous to me that our builder will be charging us $1000 on each stage on top of the inspectors fees essentially just to give them access to the premise. Is this something we can and should dispute?

Thanks!

SaveH2O · Jul 11, 2023 7:34 pm

I see that you are in Victoria where non compliance is endemic.

They must be expecting your private building consultant who would be acting as your agent to find numerous faults. Tell the unethical morons that you have unfortunately contracted to build your new home to lift their game so that your time is not unnecessarily wasted in the event that the construction does not meet the contractural and/or regulatory requirements.

Their tactics would most probably be considered by the ACCC an unfair contract clause under consumer law and should be reported.

You have every right to appoint your own agent to do stage inspections on your behalf and report their findings to you and you have every right to address all concerns to the builder.

sam028 · Jul 11, 2023 8:49 pm

SaveH2O

I see that you are in Victoria where non compliance is endemic.

They must be expecting your private building consultant who would be acting as your agent to find numerous faults. Tell the unethical morons that you have unfortunately contracted to build your new home to lift their game so that your time is not unnecessarily wasted in the event that the construction does not meet the contractural and/or regulatory requirements.

Their tactics would most probably be considered by the ACCC an unfair contract clause under consumer law and should be reported.

You have every right to appoint your own agent to do stage inspections on your behalf and report their findings to you and you have every right to address all concerns to the builder.

Thanks for the advice. Will definitely dispute this with the builder.

Infinite-Justice · Jul 11, 2023 9:15 pm

I wouldn't play the ACCC cards.

Everyone knows how the building contracts are one-sided favouring the builder but the ACCC has had virtually no bones to pick from those standard contracts other than the gag clauses, which even a blind person can see as being unfair.

Either the ACCC is utterly incompetent or there are directions from the higher up to go easy on the building industry.

SaveH2O · Jul 11, 2023 10:03 pm

Reporting to the ACCC puts the builder's behaviour on file. The ACCC does not act for individuals but they will act against companies who regularly engage in behaviour.that is in breach of consumer law. It is important that reports are lodged but this is aside from the need to refer the builder to their client's legal rights.

The ACCC has in fact acted against several building companies including Wisdom Homes, Fowler Homes and 101 Residential Pty Ltd who have engaged unfair contract clauses.

Unfair Contract Clause is a legal term addressed on the ACCC website.

Builders who financially discourage their clients from using a private building consultant to act as their rightful agent are sending a loud message that they are not confident in their ability to deliver a product to regulatory requirement, all the more reason to engage.

I am confident that someone will soon quote the legislation that allows the builder's client to appoint their own agent but a Forum search using appropriate keywords should bring the information up as it has been posted a number of times previously.

ponzutwo · Jul 12, 2023 9:56 am

They don't have a right to charge you its that simple. You or your agent must be given access to the site with reasonable notice. Your inspector is your agent. That right is an inalienable legal right. They can try and put a clause like that, but it is an unfair contract term/clause as it tries to takeaway a right that simply cant be take away.

Its a bullying tactic. Stand your ground or go to a different builder. Many welcome inspectors, even if begrudgingly. Those that try to create hurdles are a huge red flag and has always been one of my firt questions to a prospective builder before i even consider looking at their house designs. The moment one says ""ÿes but it will cot you $X"is enough to tell me how the rest of the experience will go.

ponzutwo · Jul 12, 2023 11:07 am

Also to put it into perspective, my last builder was pleased to have inspectors over, rectified every defect identified, took photos of the fixes as evidence and forwarded them to me. On top of that, they told me I was welcome to go to the site whenever I wanted and to give them a call, email or SMS with any questions or issues I may have about stuff happening on site and they would address. This actually worked out well for them, because i picked up a couple issues as soon as the frame was erected frame where they weren't built to take the custom size windows we ordered. this saved them time, money, effort etc all for just having an open relationship. Imagine what it would have cost them once everything was bricked up to solve this lol.

They had a positive relationship with my inspectors too despite some of the reports coming up relatively extensive. Volume builder in VIC btw.

dandaman21 · Jul 12, 2023 5:49 pm

I'd be finding a new builder, flags don't come much redder than this.

Pedro4137 · Jul 12, 2023 8:14 pm

Cost for builder to spend time on each report

Is that unreasonable?

ponzutwo · Jul 12, 2023 8:52 pm

Pedro4137

Cost for builder to spend time on each report

Is that unreasonable?

yes it is unreasonable. If the building industry wasn't as lax in meeting MINIMUM standards, an independent inspection industry wouldn't exists.

The builder is OBLIGATED BY LAW to build you a home that meets minimum standards.

You should not be charged EXTRA money to arrive at that outcome.

kvazer · Jul 13, 2023 11:18 am

If you can, find a new builder. It depends on your current stage and if you have already paid the deposit.

If the deposit was paid, try negotiating. Tell the builder that you will pay only if you actually send the report. When your inspector finds problems, present them in person to your supervisor instead.

To clarify, it is a red flag, any good builder would never charge for an inspection report.

ponzutwo · Jul 13, 2023 11:24 am

kvazer

If you can, find a new builder. It depends on your current stage and if you have already paid the deposit.

If the deposit was paid, try negotiating. Tell the builder that you will pay only if you actually send the report. When your inspector finds problems, present them in person to your supervisor instead.

To clarify, it is a red flag, any good builder would never charge for an inspection report.

If its early days, agree. This is a sign of things to come

OurBanyoHouse · Jul 13, 2023 1:55 pm

If you already have a contract, is the inspection cost stated in there? If not they would be forced to issue you a variation which you could of course object to.