Browse Forums Building A New House 1 Dec 23, 2008 5:40 pm Hi all
Still having massive problems with our builder. They are now demanding the lock up stage payment, despite no bricks! In a terse email last night, they said if we didn't pay asap they would be forced to impose several variation fees of $150 each on us for small changes we have made along the way. Problem is that there is no mention of a variation fee in the standard HIA contract. The did, however, mention a variation fee in their first letter to us. My question is: can they impose this if it's not actually in the contract? My other question is regarding the actual claim for lock up stage payment. The builder claims that nearly 90% of their builds pay their progress fee once internal plaster is up. Given we only have half the plaster up, I still have a problem with this. Since the frame stage payment, they have installed windows and doors, done the plumbing and electrical, installed half of the gyprock walls and half a kitchen (wrong laminate) and two vanities (one of which is the completely wrong vanity). The payment is for over $80,000. I tried to get in touch with our solicitor today and they are n leave until Jan 5! Does anyone have any advice?? I'm desperate. Building in remote, regional Vic We have roof, frame, walls, plumbing, electrical....but no bricks! Re: Help: A variation fee if it's not in the contract? 2Dec 23, 2008 5:54 pm DO NOT PAY!!
There is rules on this...Thats what you signed in the contract. They obviously want some xmas spending money. Re: Help: A variation fee if it's not in the contract? 3Dec 23, 2008 5:58 pm In NSW the contract clearly explains what each stage requires for payment - sounds like they are trying to blackmail you! After 4 years - we're in! Re: Help: A variation fee if it's not in the contract? 4Dec 23, 2008 6:16 pm Thanks guys - that's what I'm thinking, but is there anyway their argument will stack up in terms of the plumbing, electrical etc being done - can they claim that consitutes a lock up stage payment even without bricks?? Building in remote, regional Vic We have roof, frame, walls, plumbing, electrical....but no bricks! Re: Help: A variation fee if it's not in the contract? 5Dec 23, 2008 6:40 pm Also, they can't charge you for a variation unless you and the builder have signed specifically for it. Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: Help: A variation fee if it's not in the contract? 6Dec 23, 2008 6:43 pm did they give you the request in writing?
im sure the HIA/BSA or appropriate authorities would love to see a copy Blog - http://snakedr.blogspot.com/ Build Thread - viewtopic.php?f=31&t=12084&p=307406#p307406 Status - PCI 15/10. Things nearly done. Re: Help: A variation fee if it's not in the contract? 7Dec 23, 2008 6:45 pm House Contracts Guarantee Act 1987 - SECT 21
Limit on progress payments 21. Limit on progress payments (1) In this section- base stage, in relation to a dwelling-house, means the stage when- (a) in the case of a concrete slab floor, the floor is completed; and (b) in the case of a timber floor, the concrete footings are poured and the base brickwork is built to floor level; frame stage, in relation to a dwelling-house, means the stage when the house's frame is completed and approved by the building surveyor; lock-up stage, in relation to a dwelling-house, means the stage when the external wall cladding and roof covering is fixed, the flooring laid and the doors and windows fixed; fixing stage, in relation to a dwelling-house, means the stage when all internal architraves, skirtings, doors, built-in shelves, baths, basins, troughs, sinks, cabinets and cupboards are fitted and fixed in position. --------------------------------------- There ya go! from here: http://www.austlii.edu.au/au/legis/vic/consol_act/hcga1987271/s21.html Re: Help: A variation fee if it's not in the contract? 9Dec 23, 2008 7:40 pm overthebuilding process. Any chance you can hold the builder off until your solictior gets back in less than 2 weeks time. Your builder isn't going to be working over Xmas anyway is he? Is he?
Or can you give him a cheque for what he wants, dated, say, 6th Jan that will give you a chance to cancel it if your solicitor says don't pay. I'm just thinking what I'd be doing. i hate them I hate them (no, I've had some awesome ones too) Re: Help: A variation fee if it's not in the contract? 10Dec 23, 2008 8:28 pm from the consumer affairs Victoria website:
"Lock-up stage is complete when a home's external wall cladding and roof covering is fixed, the flooring is laid and external doors and external windows are fixed (even if those doors or windows are only temporary)." Re: Help: A variation fee if it's not in the contract? 11Dec 23, 2008 9:55 pm The Consumer Affairs fact sheets also warn very strongly that you should NEVER pay in advance for work that has not been done.
Make sure you put your reasons for delaying payment in writing. The builder doesn't have a leg to stand on and he knows it. He's hoping you'll be too naiive and intimidated and will just pay up. Your solicitor must have an emergency contact? Or you could call the Building Commission/HIA/MBA for advice. Better do it tomorrow.... Re: Help: A variation fee if it's not in the contract? 13Dec 24, 2008 11:14 am No bricks, no way. What a joke. Don't pay for anything in advance, if the builder goes under, you are screwed, will never ever ever get your money back. Sounds like they think if they bully and scare you enough you will pay it, personally, I would talk to your bank aswell (assuming you have a loan). With ours we had to sign at each stage to say the work was done, I would talk to them and tell them what is happening, there is no way the bank would let go of the money given the stage the house is at, maybe even put it back on the bank to be the bad guy, nto you.
Re: Help: A variation fee if it's not in the contract? 14Dec 24, 2008 12:32 pm Spot I would talk to your bank aswell (assuming you have a loan). With ours we had to sign at each stage to say the work was done, I would talk to them and tell them what is happening, there is no way the bank would let go of them money given the stage the house is at, maybe even put it back on the bank to be the bad guy, nto you. Great advice Spot. I have a very good friend whose bank made progress payments without his authorisation/sign off or even advising him. Consequently the builder was massively over paid and for work that hadn't been completed. It is now the subject of long running legal and criminal action, but they still don't have a completed home. Re: Help: A variation fee if it's not in the contract? 15Dec 24, 2008 12:43 pm Thanks for everyone's replies! I sat up til all hours of the morning looking up legal precedent etc and wrote the builder a very long email which read more like a legal letter and basically told them they didn't have a leg to stand on.
I also took your advice Kek and called the Building Commission dispute service. They reaffirmed everything we had all thought and told me the builders' conduct in threatening variation fees could well be considered unconscionable conduct under the Trade Practices Act. They also said the builder would need an exceptionally good reason to delay the build now and suggested if they stop building, we will more than likely be eligible for damages per week of delay. I haven't had a response from the builder as yet. They were supposed to be onsite this morning, but no one arrived. I AM relieved to know that we are in the right though. Thanks again to everyone for their advice. I'll let you know what the builder's response is. oh, I've also let the bank know what is happening! Building in remote, regional Vic We have roof, frame, walls, plumbing, electrical....but no bricks! I work with owner, he/she is my man on the ground and I instruct them when to visit the site and take photos and I have other tools in the bag. 4 15275 Looking for advice on whether this variation in tile colour is acceptable. The large tile on the left was used in my main bathroom renovation 1 year ago. My ensuite… 0 8490 yes it does, you've just not understood it. theres a difference. 4 5322 |