Variations on Fixed Price Contract

IntolertantCheese · Mar 26, 2024 10:41 am

Hi All,

We're building a new home in southern Tasmania. We have planning approval through our local council, and the builder has submitted engineering drawings to the surveyor/council for building approval.

At the planning stage, the builder had a BAL report done and it came back at 19. Yesterday, keeping in mind how far along we are now, they said (and we don't know why) they had another BAL report done and it's now a rating of 29.

We have a fixed price contract. It was signed after they knew about the BAL 19 rating. They are now trying to pass the extra costs associated with the BAL 29 rating onto us as a variation. We do not have the funds available to us to cover this. But I query whether we are even obligated to? Does anyone know?

Thanks,
Cheese.

ponzutwo · Mar 26, 2024 1:11 pm

So AFAIk the outcomes of the BAL ratings form part of a clause that allows them to pass these costs on to you.

However the more relevant detail is how did it go from 19 to 29. I'd ask to see the assessment that returned a 19 result and then the subsequent 29 result. Any pushback to do so should be a red flag to you.

I know BAL ratings can change, but from my anecdotal experience they usually decrease as more development of an area removes some of the risk.

Gunner1 · Jul 26, 2024 7:52 pm

IntolertantCheese

Hi All,

We're building a new home in southern Tasmania. We have planning approval through our local council, and the builder has submitted engineering drawings to the surveyor/council for building approval.

At the planning stage, the builder had a BAL report done and it came back at 19. Yesterday, keeping in mind how far along we are now, they said (and we don't know why) they had another BAL report done and it's now a rating of 29.

We have a fixed price contract. It was signed after they knew about the BAL 19 rating. They are now trying to pass the extra costs associated with the BAL 29 rating onto us as a variation. We do not have the funds available to us to cover this. But I query whether we are even obligated to? Does anyone know?

Thanks,
Cheese.

I'm a home builder. ASK why the BAL report went up? Did you change home position, change design?