Browse Forums Building A New House 1 Jan 16, 2007 12:38 pm Our Standard QLD Building contract contains a date that the site works must commence in order for the contract price to remain.
We have given the builder all information/deposits etc when requested, and at the time of signing the contract we we guaranteed there was plenty of time for this to commence. However, since Christmas they have stopped any work on drwardins and have not booked in the site works as they are 'too busy' as key staff have been on extended leave etc, and the site works won't be started until after the contacted date. They have also sent a letter stating the 'new' price ($15,000 more than the contracted price) as the contract says they can if construction did not commence by 15/01/07. My question is: can they do this even though we have not held them up in any way, The issue seems to have been entirely internal (staff not available) - we have no control over this. How do we know this is not just a ploy to get us signed up then hike the price? Anyone else with similar experience? Pleb Re: Commencement Delays "Commencement and Price Review Date 2Jan 16, 2007 3:40 pm I have had a similar issue as well. The contact stated that the house must start site within 4 calendar months from initial deposit, sure enough our house did go over that 4 months- at both mine and the builders fault, however they extended the date for another 2 months, so the prices we paid when we started were still the same.
I hope your builder is able to do the same, Cheers Jamie. Re: Commencement Delays "Commencement and Price Review Date 3Jan 17, 2007 11:35 am Hi,
We had same problem with our builder except our builder tried to blame local council delays for the extra payment demands. after months of threats of legal action getting us nowhere we hit upon the idea of involving the media and creating a huge stink by picketing all of teir display homes. By this stage we completely had the **** up and no way where we going to pay them an extra 10k for their failure. in the end the threats and phone calls from the media worked and they agreed to waive the increase but as you can imagine they havent been really interested in finishing our house quickly or professionally. best of luck and my suggestion is to fight like hell. btw not sure what the QLD contracts say but under WA contracts both parties have a legal obligation to work toward the timelines imposed in the contracts so if it did go to court you should stand a reaonable chance. another story 4Jan 18, 2007 11:24 pm Hi Pleb
Who's your builder? I have heard some people get into debate over what 'commencement' actually means as well. You may find that clearing and leveling the sand etc does not mean commencement, but rather only when the slab goes down. Worth checking it out. Perhaps speak to the local building registration board to see if they can help you re the interpretation of the contract, and you may also have the tribunal to use. Others have simply sat down with the builder with the long list of dates to show them how it was not their fault - this can work on occasion. It's a shame how its such a common problem. I hope all goes well and remember to let us know what transpires! Regards Re: Commencement Delays "Commencement and Price Review Date 5Jan 19, 2007 7:11 am Perhaps you could include an agreed definition into the building contract, that way it covers both parties.
Remember you both sign it, you both must honor it (generallyspeaking) Adrian B Re: Commencement Delays "Commencement and Price Review 7Jan 23, 2007 11:55 am That's terrible news Pleb. I can't believe such a large builder would try this on.
Did the price of building this house go up over the New Year....or did they pluck $15k extra from thin air? How are you finding the builder in other respects? Did they try to charge extortionate site costs? Re: Commencement Delays "Commencement and Price Review Date 8Jan 23, 2007 12:50 pm Pleb,
I'd be seeking some advice in your position from a contracts laywer and when they actually start building would employ an independant inspector. from our very similar experience i'm afraid these steps will prove necessary and as you have a very long road ahead best to err on the side of caution than let them take control of the situation. Re: Commencement Delays "Commencement and Price Review Date 9Jan 23, 2007 1:08 pm Isn't there also a limit to how high an increase can be enforced by the builder? From memory they can't raise a price by more than 5% of the contracted price? You may have a few options to pull out of the contract. Re: Commencement Delays "Commencement and Price Review Date 10Jan 23, 2007 1:45 pm It does sound like a lot.
Ask the builder to justify the increase and see what happens. They can't just spin the chocolate wheel to get the new price. You're talking a 5-10% increase overall, depending on the price of your house. There is no way all labour and materials have gone up that much. Some materials maybe up 5% but that's about it. I think you'll find they won't be able to justify the cost so will back down. Re: Commencement Delays "Commencement and Price Review Date 11Jan 24, 2007 11:48 am Unless it's a cost plus contract i dont think you'll find the builder required to justifying their price increase or be willing to. the point that needs to be strongly made to the builder is that they have failed to honour the contract by missing the deadline as outlined in the contract and that you refuse to pay any increase. in fact legally your probably entitled to compensation at this point. when we went through this the builder refused to negotiate and even offered a full refund to try and get rid of us. instead we read through the contract thoroughly. outlined their breach of contract, intimated that we were prepared to start legal action to resolve this and then got the media involved.
sorry to go on like this but really winds me up when they do this stuff and i think your only option is to go on the attack, at the end of the day why would anyone be prepared to pay extra for someone elses lazyness and inablitiy to honour their agreemant. Just to makea point about this, an approach that some people have found sucessful in negotiating these rises down, Is to provide some workings to the builder, specifying… 4 81667 The HIA contract, in the term & conditions section states that "Commencment" is deemed when the drainage is started or the piers are dug or the slab is formed up (incase… 2 6150 In fairness nobody gave a crap about the ACCC and the gag clauses continued in the pro forma templates of a few other builders after the ACCC took on Wisdom, and more… 19 73284 |