Browse Forums Building A New House 1 Apr 09, 2009 10:12 pm After a couple of frustrating years we are finally nearing completion of our home with one of NSW's largest builders. Today I recieved as email from our CSO with a couple of variations that needed to be signed before they could finalise our accounts. I was dumbfounded to find out that one variation was for $38 773 for 'rock excavation, machine hire and labour, related to piering' and the other was for $5638 for the sewer connection. We have never been notified of either of these variations and obviously trying to find an extra $45 000 for handover in the next couple of weeks is going to be a problem. If we had been notified of these costs at the time we would have seriously considered not going ahead with the building. I rang the CSO immediately upon receiving the email and before I could say too much she said to me "I gather that you have not seen these variations before and that you weren't invited to do an inspection at the time?' After assuring her that we had never heard anything about these variations she said that she would need to speak to her supervisor. So now we have a nervous wait over Easter.... I am wondering if anyone out there has experienced a similiar situation or knows what out legal standing may be if we contest these variations? Re: Late arriving....Piering Costs 2Apr 09, 2009 10:34 pm Oh no that's awful! I would almost pass out if that happened to us. Isn't the builder obligated to advise you of this sort of thing when it happens and not 12 months later? If they insist on the charges, I would definitely seek some legal advice before paying. Good luck, I'm keeping my fingers crossed for a good outcome for you. Blog: http://bluemistkids.blogspot.com "Never be afraid to try something new. Remember, amateurs built the ark, and professionals built the Titanic." Re: Late arriving....Piering Costs 3Apr 09, 2009 10:35 pm I haven't heard of anything like this before coming through at such a late stage. I would be taking your contract to a solicitor urgently as this is not a small amount of money you are talking about. It appears somebody has made a big mistake as it sounded like the CSO was expecting you to say you knew nothing about it. Good luck and let us know what eventuates!! Re: Late arriving....Piering Costs 4Apr 10, 2009 12:22 am Hi shaz, The HIA contract clearly states that each party has to agree, (in writing signed by both parties) to any variation occurring during construction and in the case of unforseen work e.g. rock excavation etc. you must be notified in writing with an estimate of the cost as well as when the work is being carried out so you have a chance to supervise it. It also says that the variation must be paid at the next progress payment. In your case none of this has happened and the builder could be in breach of the contract. Check your contract carrefully and argue the point with them (preferably in writing). If they phone you, request that they confirm what has been said with a follow up email , you can also send them one confirming the conversation. I would ring the Department of Fair Trading they might be able to give some good advice. I think it is outreageous that they can treat you like this. Unfortunately they will try to put pressure on you because they know you are eager to get into your house, but this is a huge amount of money and it is worth fighting for. I wish you the best of luck and don't give up. Let us know how it goes and in the meantime try to have a Happy Easter. T. Re: Late arriving....Piering Costs 5Apr 10, 2009 9:29 am Hi Shaz We had the same issue (but minor compare to yours) with the provider and installer of our Treatment Plant. He charged us 10% more than agreed on and signed for. His contract stated the same as T mentioned. So we sent him a letter stating that we did not agree on the extra costs and asked him to show us the paperwork with the estimated extra costs and the work required + our signature on that form. After a couple of days he rang us that he did not charge us anything more than the contract price. Re: Late arriving....Piering Costs 6Apr 10, 2009 1:14 pm Absolutely appalling! As the otehrs have said, you MUST sign off on all variations before the builder can go ahead with them, so if they really have done that additional work along the way without consulting you, then they can go whistle... Don't let them bully you into paying ANY of it. You didn't consent, you weren't even consulted. Their problem. Re: Late arriving....Piering Costs 7Apr 10, 2009 1:52 pm kek Absolutely appalling! As the otehrs have said, you MUST sign off on all variations before the builder can go ahead with them, so if they really have done that additional work along the way without consulting you, then they can go whistle... Don't let them bully you into paying ANY of it. You didn't consent, you weren't even consulted. Their problem. Kek you are a woman after my own heart! well said, I couldn't agree with you more. T. Re: Late arriving....Piering Costs 8Apr 10, 2009 5:11 pm Yep, I agree with others. The contract clearly states the rules and this is their mistake and therefore their cost. Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: Late arriving....Piering Costs 9Apr 22, 2009 7:13 pm Thanks to everyone for your advice. We had reached the same conclusion as all of you after reading our contract but unfortunately the building company in question has seen it differently....I knew that this wasn't going to go smoothly. Apr 9 - Notified of 3 new variations totalling approx $48K Apr 9 - Rang CSO to express my dismay at sighting these variations for the first time one week before handover. Apr 14 - Rang CSO to find out what was happening. She advised that she was waiting to talk to the General Manager about it (sounds like an admission of guilt?) Apr 15 - Rang CSO to find out that she was witing to talk to her supervisor. Apr 16 - Rang CSO who said she hoped to have a resolution by the the next day. Apr 17....21 - Lots of phone calls which were unanswered both by the CSo and her supervisor...but I do know the receptionist quite well now! Apr 22 - An email was issued from the building company which basically said the following: "Our notes in your file indicate that at all times you were kept advised of the progress of your house"..it must be someone else they were thinking of because their communication has been awful. Anyway it continued on with them offering to discount the variations by their margin which was approx $10K but then to add insult to injury they have dug up another variation for rock excavation "based on getting the final consolidation ready" for $4000 which they will happily discount to $3224. How nice of them. I am absolutely dumb-founded at the total mismanagement that has allowed such a situation to occur. I think the crux of the matter is that if we had been made aware of the variation we would have most likely cancelled the contract which, if I read it correctly, is an option in our contract for variations greater than 5% of the contract price. Looks like we are off to visit our solicitor tomorrow! Re: Late arriving....Piering Costs 10Apr 22, 2009 7:27 pm Shaz "Our notes in your file indicate that at all times you were kept advised of the progress of your house". Really? I'd want them to prove that. Where's their return receipt for the emails they sent you advising of the costs? Were the letters sent registered mail advising you of the cost? I'd doubt they can prove it. Shaz Looks like we are off to visit our solicitor tomorrow! Good luck. Hopefully you won't have to pay a cent! I leave you to fend for yourself, figure things out yourself. Terrence Malick Re: Late arriving....Piering Costs 11Apr 22, 2009 8:03 pm Oh Shaz I'm absolutely horrified!! I can't believe any builder could be so careless and ruthless. Unless you've signed in agreement of the charges then absolutely no way no how should you be paying. They are trying to get out of their mistake big time. Re: Late arriving....Piering Costs 12Apr 22, 2009 8:08 pm I'd certainly be asking for proof of communication.... Otherwise they don't have a leg to stand on... Electrical Engineer... Don't hold that against me... And keen owner builder... Mainly the building part!! Re: Late arriving....Piering Costs 13Apr 22, 2009 8:19 pm Ask for copies of the letters. It would be a brave (and foolish) company that would create and backdate a letter. Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: Late arriving....Piering Costs 15Apr 23, 2009 7:56 am Bugger Shaz! I too doubt that they would be able to prove the communication. I'm pretty sure that you would need to sign off on this kind of stuff, so unless they can show the documents with your signature for these changes then I don't think they have a leg to stand on. Let us know (if you are able) what your solicitor says - goodluck! 'A bottle of wine contains more philosophy than all the books in the world.' 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