How to calculate provision sum and margin?
We are nearing completion and have received the final invoice which includes unexpected expenses for provisioned items. The initial contract quoted $8,000 for OHS, but the invoice totals approximately $14,000. The contract margin for provisioned items is 20%.
Is the final amount =
14,000+(14000-8000)×0.2
Or 14,000+14,000 x0.2?
Items not completed as per contract:
Additionally, there are a couple of items (e.g. builder installed flash caping instead of klipklop roof +gutter + Rainhead) that were not completed as per the contract, and we haven't provided written agreement for their exclusion/changes.
Builder suggested these items were deemed unnecessary and the outcome improves upon the original design which we are not sure and have no way to approve.
Any advice on how to address this situation?
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Browse Forums Building A New House  15 Feb 2025 3 New Poster Re: Provision sum and items not completed as per contract? 2Feb 15, 2025 3:13 pm The builder needs to provide all receipts related to provisional sums purchased up to every submitted progress claim. Anything above the stated provisional sums amount need to be communicated in writing and agreed by you. And the builder is entitled to a 15% margin on sums unless stipulated at 20% in the contract. It’s all in the contract… Our builder did the same thing the day after we applied for the building permit. I think it’s a scumbag move by the builder by taking advantage of the owner being in a… 2 24323 I would raise this and get them to suggest a remediation. My personal opinion, while it is not aligned to centre, if you put a toilet roll holder / vanity / toilet brush… 1 19917 At which stage should I prepare for this, presumably post-handover at the landscaping design stage? But should the sparky provision for this when he does the rough in? I… 0 25178 |
