Concerning charges from builder for building inspector

jran · Jun 22, 2024 12:52 pm

Hi,

We have engaged with a builder for a new build in QLD. Been through initial stages of soil tests etc and plans/estimates being finalised and getting close to contract stage. I recently asked about getting a building inspector for the build and they sent me a form with the details on what they will include with the contract and there is some concerns:

Firstly, they are only recommending a Pre-plaster and PCI inspection. We were thinking of doing a frame stage and enclosed/water proofing inspection too. They are not against adding extra stages but it would come at a cost as noted below.

Secondly, most concerning is the below clause. Based on this we will be paying 0.125% per week through the whole period of inspections/reports and rectification. This seems like a red flag to me and not something I have seen from any of my searches so far.

"The owner acknowledges that the owner must pay to the builder, as a debt due and payable, representing 0.125% of the contract price per week for the dates noted on the extension of time, from the date that the owner is notified that the home is ready for the Third Party Inspector until the date the next trade can be secured for the next stage of the build."

Thirdly, an additional $450 payable for each report issued by the inspector for review. Again this seems excessive but in line with many builders based on searches.

What have other peoples recent experiences been with new builds and inspectors? This seems like a big red flag to me.

Ashington Homes · Jun 23, 2024 5:01 am

jran

Hi,

We have engaged with a builder for a new build in QLD. Been through initial stages of soil tests etc and plans/estimates being finalised and getting close to contract stage. I recently asked about getting a building inspector for the build and they sent me a form with the details on what they will include with the contract and there is some concerns:

Firstly, they are only recommending a Pre-plaster and PCI inspection. We were thinking of doing a frame stage and enclosed/water proofing inspection too. They are not against adding extra stages but it would come at a cost as noted below.

Secondly, most concerning is the below clause. Based on this we will be paying 0.125% per week through the whole period of inspections/reports and rectification. This seems like a red flag to me and not something I have seen from any of my searches so far.

"The owner acknowledges that the owner must pay to the builder, as a debt due and payable, representing 0.125% of the contract price per week for the dates noted on the extension of time, from the date that the owner is notified that the home is ready for the Third Party Inspector until the date the next trade can be secured for the next stage of the build."

Thirdly, an additional $450 payable for each report issued by the inspector for review. Again this seems excessive but in line with many builders based on searches.

What have other peoples recent experiences been with new builds and inspectors? This seems like a big red flag to me.

jran

That would be a massive red flag for me. Your builder obviously doesn't want anyone scrutinising their work.

Let's be honest, builders make mistakes, us included. As night follows day we make mistakes all the time. We try our best not too but we do. There is so much going on with building a house that you can't pick up everything.

So we actively encourage our clients to come to site and let us know if they see something they feel is wrong. We also choose certifiers and engineers who also scrutinise our work.

We also welcome our clients to bring their inspectors, and in fact we often liaise directly with the inspectors. The more eyes the better.

At the end of the day we in a privileged position of being trusted to build our clients homes, which are such a big investment so we want the best outcome.

I genuinely believe that this attitude is a warning sign for you to find someone better.

All the best with your build

Simeon

Pedro4137 · Jun 24, 2024 12:08 pm

Fair and reasonable cost.

Asking builder to evaluate a report provided by a third party.

Eng. B A · Jun 24, 2024 12:43 pm

In QLD there is form 12 for aspect of work completed inspection certificate and also form 16 for each stage of work inspections. Your builder should supply you and the building certifier with all inspection forms that confirm the work has been completed as per the design drawings/relevant standards.
The forms should be issued by the appropriate qualified professionals/QBCC licenced that has been assessed by the building certifier as qualified.

For example you need certificates for footings and slab steel reinforcements, wall and roof framing, waterproofing, plumbing, electrical and earthworks etc.
It’s recommended not to finalise contractors payments till you receive the required forms to ensure quality and certification of works completed as it’s hard to get hands on once work is completed.