Browse Forums Building A New House 1 Dec 01, 2008 10:40 am Hi Guys,
Just a quick question. We are building with henley and have signed all our contracts. We have a rock provision in our contract which I have been advised is capped at 15% if we find more rock than thought. However when looking over the contracts there is nothing about the 15% rock clause. I asked or Administrator and she advised me that it isnt in the contract but its just something the builder does. When i asked if they had any paperwork stating this she simply said no. Should i be worried if i hit more rock that they will pretend our conversation about the capped amount ever happened?? Re: ROCK CLAUSE NOT IN CONTRACT! HELP!! 3Dec 01, 2008 11:06 am WoW!! Well i better get onto that. Has anyone had an experience where they did make them pay for the extra rock? Or didnt? Re: ROCK CLAUSE NOT IN CONTRACT! HELP!! 4Dec 01, 2008 11:38 am Is that a 15% cap on the provisonal cost of rock removal (not to bad) or 15% of the cost of the hosue (disaster!)? Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: ROCK CLAUSE NOT IN CONTRACT! HELP!! 5Dec 01, 2008 11:55 am its 15% is the provision for rock removal.. Although our rock provision was $11760 plus their 25% builders margin which worked out to be about $14700. So i suppose its kind of like 40% really Re: ROCK CLAUSE NOT IN CONTRACT! HELP!! 6Dec 01, 2008 12:38 pm would definetely ask for it in writing....as much as we would all like to trust our builders, u should definetly get everything in writing Re: ROCK CLAUSE NOT IN CONTRACT! HELP!! 7Dec 01, 2008 12:54 pm While we are in the process of negotiating with Urbanedge, we have signed a foundation/site works offer with them. This is for the fixed cost of requisite foundation and siteworks for a fixed cost of $5,500 that will cover all classes of waffle pod slab including P class and any rock excavation and removal necessary. This is one of the factors that we have chosen them. I think this fixed cost also makes them different from other builders. Re: ROCK CLAUSE NOT IN CONTRACT! HELP!! 8Dec 01, 2008 3:13 pm stressed85 its 15% is the provision for rock removal.. Although our rock provision was $11760 plus their 25% builders margin which worked out to be about $14700. So i suppose its kind of like 40% really 25% builders margin! It gets scarier by the post! Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: ROCK CLAUSE NOT IN CONTRACT! HELP!! 10Dec 01, 2008 5:55 pm I remember reading somewhere that the max a builder can charge above a provisional item is 15%. I just can't seem to find the thread. Maybe someone in the forum can........ Re: ROCK CLAUSE NOT IN CONTRACT! HELP!! 11Dec 01, 2008 6:32 pm We've already been hit with another $1900 for additional rock removal costs and will have another bill soon because they've now struck clay while adding the leech drains. assuming they don't strike more rock it will be for cutting and filling with good sand but if they strike rock there will also be costs additional for that also. Re: ROCK CLAUSE NOT IN CONTRACT! HELP!! 12Dec 01, 2008 9:52 pm Thanks for all the info guys. I'll definitly speak to our administrator about it however considering weve already signed the contracts and the cooling off period has ended im guessing they wont care much about what i have to say about the whole thing Re: ROCK CLAUSE NOT IN CONTRACT! HELP!! 13Dec 02, 2008 10:12 pm our land is slope and we look around to ask how much it would cost they said they cant tell and it depends how big is the rock.
settled with Urbayne Homes, and made an agreement with them ,sitecost and if they found any rock will have to pay 15K. ask them to removed the claused on the contract for charging us more. And they agreed. try visit their website www.urbaynehomes.com.au Re: ROCK CLAUSE NOT IN CONTRACT! HELP!! 14Dec 02, 2008 10:20 pm our land is slope and we look around to ask how much it would cost they said they cant tell and it depends how big is the rock.
settled with Urbayne Homes, and made an agreement with them ,sitecost and if they found any rock will have to pay 15K. ask them to removed the claused on the contract for charging us more. And they agreed. try visit their website www.urbaynehomes.com.au Re: ROCK CLAUSE NOT IN CONTRACT! HELP!! 15Dec 02, 2008 11:32 pm We were told the same thing when we went looking at builders. The SC said that builders can't charge more than 15% on the provision, she said it's the law, I ask her to put it down in writing and she refused saying she can't do that (company policy). So I called up BACV and asked them and they said they are not aware of this and it's not stated in law.
Maybe it's a builders' trick. Re: ROCK CLAUSE NOT IN CONTRACT! HELP!! 16Dec 02, 2008 11:41 pm Oh yeah I forgot to ask... with builders' margin for the provisional sum amount shouldn't the margin be on the excess amount after the provision amount is reached eg. if you have $10k as provisional sum and say they hit rock and cost you $12k shouldn't the builder's margin be on the additional $2k not the original $10k and then thereafter? If the builders' margin is calculated on the $10k then its not really a provisional sum of $10k. I hope what I am asking make sense. Re: ROCK CLAUSE NOT IN CONTRACT! HELP!! 17Dec 03, 2008 7:36 am One thing that really annoys me about this rock charge is that the $150-200 per square meter they charge for removal should only be based on large rocks which need Rock blasting or jack hammering. If you have lots of small rocks the only charge for these should be the additional work of a bob cat and removal. If you use a bin this would be the cheapest option perhaps under $1000 all up. But I always see builders using this as an excuse to charge more $$$$. Re: ROCK CLAUSE NOT IN CONTRACT! HELP!! 18Dec 03, 2008 9:30 am WoW!! Now im really stressed hehe.. Especially considering its our 1st home alnd all. Im not too sure what to expect.
Polo Posted: Wed Dec 03, 2008 12:41 am Post subject: -------------------------------------------------------------------------------- Oh yeah I forgot to ask... with builders' margin for the provisional sum amount shouldn't the margin be on the excess amount after the provision amount is reached eg. if you have $10k as provisional sum and say they hit rock and cost you $12k shouldn't the builder's margin be on the additional $2k not the original $10k and then thereafter? If the builders' margin is calculated on the $10k then its not really a provisional sum of $10k. I hope what I am asking make sense. ____________________________________________________________ (Still new to this site trying to work it all out) Yeah Polo. So how ive been told they work it out is the $11760+15%=$13524 + 25%= $16905 for rock removal. And that is ontop of our $10000 for site fees. Quite alot i think considering its only a 26square home. We have been told if we dont hit alot of rock we wont be charged the whole amount. I think they said they usually charge about $200 per CBM. So i will be at the block every day wth a camera when they start. Our neighbour told us they had huge boulders that had to be removed. Ive only seen her once but i think she is moving in soon so when i see her next i might go into alot more detail with her about the whole situation. She is also buildng with h3nley. I also forgot to mention when we recieved our soil test they had found rock at every point they dug Re: ROCK CLAUSE NOT IN CONTRACT! HELP!! 19Dec 03, 2008 6:43 pm well we just got the price for our additional costs. ... 2976 or 2970 either way it's ouch! Unless there is something in special conditions the builder does not have to give you timeline. If your demolition contractor has not removed Asbestos and it was found… 12 28812 Hi all, I have been looking at land in South Australia, that is on a slope however most of the core excavation is complete, with a flat area to place a house. The agent… 0 1416 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16571 |