Browse Forums Building A New House 1 Apr 10, 2009 7:28 am Hi Everyone
Well we have just received the contract from the Builder which is the standard HIA one with 145 working days (two storey house) and damages if they go over, however in the Special Conditions they have put the following clause: "the builder can claim an extension of time for the following situation "Delay in availability of material supplies or suitably qualified tradespeople". Now to me that seems like an open book to extend the build time for as long as they want without incurring damages on the builders part Has anyone else experienced a similar clause or think that it is a little unreasonable?? Feedback from anyone is most appreciated. Thanks everyone. Re: Clause in Contract 2Apr 10, 2009 7:46 am Call me suspicious.....I read that and immediately thought that perhaps the builder has a cash flow problem and isn't paying suppliers and trades on time, which would be a very good reason for having problems finding anyone to supply or work for them. There is a certain major builder who's experiencing long delays with the builds around here - at least 6 homes near us have now run 5-6 months longer than they should, apparently due to shortage of tradespeople. One house in particular sat neglected for 6 months at frame stage, waiting for brickies to start. I've been told by some reliable sources that they're extremely slow paying these people, which is why nobody will work for them. One renderer has been waiting over 6 months for $10,000 worth of payments.... It could be just very poor administration, but I smell financial trouble. With your builder, it may really be that there genuinely is a shortage of some trades in your area, but I wouldn't be happy about signing that contract at ALL. Tkae a good look around and see whether homes around the area are moving along at a reasonable pace - no matter who's building them. Talk to some other home owners who've used your builder if you get the chance, see what their experience was. Re: Clause in Contract 3Apr 10, 2009 7:59 am Hi Kek Thanks so much - I was hoping that feedback would reinforce what I was thinking. It is not one of the big builders - it is W&%cr#st!!! We made the decision to continue as we felt having administrators looking over their should it should be OK - but with a clause like that we are again ready to jump.....it makes me a little too jittery I think. The problem at the moment is we don't know whether to ask them to take out the clause - and if they say yes to continue, or do we take it as a sign and just go somewhere else???? Ahhhh - the dilemma's of building Re: Clause in Contract 6Apr 10, 2009 8:07 am OK, I definitely wouldn't do it. You alreadu know there's financial issues, and that clause just gives them free reign to take as long as they damnwell like. I don't know much about insolvency law (my husband's the expert there...) but I know that there's a set order in which the administrator has to pay debtors, and I have no idea where trade suppliers and contractors come in that order. I doubt they're top of the list....banks and the ATO will be up there. It sounds like they're anticipating those sorts of delays, and you can bet they'd be entirely due to non-payment of accounts. Run as fast as you can. Re: Clause in Contract 7Apr 10, 2009 10:44 am surfshak Well we have just received the contract from the Builder which is the standard HIA one with 145 working days (two storey house) and damages if they go over Gee! That's quick, I've been given 153 days for a single story 21sq house!! 'A bottle of wine contains more philosophy than all the books in the world.' Louis Pasteur Vegie garden: viewtopic.php?f=19&t=27637&start=0 My Backyard Adventure Re: Clause in Contract 8Apr 10, 2009 12:42 pm Lisanne, that's calendar days, not working days.....yours is the shorter period. Re: Clause in Contract 9Apr 10, 2009 1:31 pm kek Lisanne, that's calendar days, not working days.....yours is the shorter period. Ahhh ok thanks Kek, that makes more sense 'A bottle of wine contains more philosophy than all the books in the world.' Louis Pasteur Vegie garden: viewtopic.php?f=19&t=27637&start=0 My Backyard Adventure Re: Clause in Contract 10Apr 10, 2009 5:17 pm You pay a builder to build you a house. Apart from rain, the only other possible delay is "availability of material supplies or suitably qualified tradespeople". They're basically saying, give us money to do the logistics and project management, but if we do it poorly, it's at your expense. Remove the clause. Ask them if they are confident in their ability to perform materials logistics and project management. If they are, remove the clause. If they are not confident, then remove your business. The cheek! Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: Clause in Contract 11Apr 10, 2009 9:06 pm sufshak - we are building with the same builder, and it is in our contract too, which was written before the you-know-what hit the fan. If you're concerned get a lawyer to look over the contract. We did, and whilst we were able to change some things, this was not one of them. Just to let you know, our house is progressing quite nicely at the moment and they are about to brick the second storey. I'm happy with the tradesmanship so far. Judie Re: Clause in Contract 12Apr 11, 2009 9:36 am Cross out the clause and initial the change and sign the contract - the ball is in their court. Though I see their point, they can no longer guarantee to get good service from material suppliers or trades and they don't want to be lumbered with liquidated damages in their current state. Ed "ECOECO" At 'EcoEco', we design windows, we design the best windows, we do it for you, so that when you’re happy we are happy. Tel. 1800 326 326 Re: Clause in Contract 13Apr 11, 2009 10:48 am Judie sufshak - we are building with the same builder, and it is in our contract too, which was written before the you-know-what hit the fan. If you're concerned get a lawyer to look over the contract. We did, and whilst we were able to change some things, this was not one of them. Just to let you know, our house is progressing quite nicely at the moment and they are about to brick the second storey. I'm happy with the tradesmanship so far. Judie Even though in the public eye "it" hadn't hit the fan yet, in their eyes I'm sure it already had. I doubt that clause was in the contract 24 months ago. Re: Clause in Contract 14Apr 11, 2009 3:24 pm Hi Everyone Thank you all so much for taking the time to reply........you have just reinforced my thoughts and stopped me from thinking I was being too picky . Casa2 - that is perfect - I hope you don't mind if I borrow some of that in my email to them explaining why we are not signing the contract??? Judie - I am so glad your house is coming along.....to say we are disappointed at the moment is an understatement. We are so peeved off that we have to start all over again (the time line was to have the slab down the beginning of May) I even rang around a few companies today to find out if they have a similar clause - and no, no one does. We then found out that a friend of a friend has had an 18mth delay with the construction of his house due to having a similar clause (with a small builder).....after alot of legal action and $$$ they have finally had the builder declared insolvent and are only next week getting work started on the house again So I will email them our decision not to sign and why - however, even if they remove the clause I don't think we are prepared to continue.....not in this economic climate with their track record Re: Clause in Contract 15Apr 11, 2009 6:02 pm surfshak Casa2 - that is perfect - I hope you don't mind if I borrow some of that in my email to them explaining why we are not signing the contract??? Certainly, my pleasure. Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: Clause in Contract - UPDATE 16Apr 15, 2009 7:40 am Well I can't believe it......W$ncr#%t have come back and are quite happy to remove the clause (Casa2 I reckon it was your wonderful sentence - the Management is quite happy to meet us to go over the whole situation if we would like too ) ....... the explanation they gave us was quite believable (maybe I am just gullible)..... and they have allowed us to insert a clause that we can end the contract and finish the house should they be declared insolvent (thanks Judie ). So now we are back to our dilemma again ....we LOVE the house design and facade (non of the other builders have a house that fits as well on our block as we are limited with easements), our CO has just been so fantastic that I think we would be very disappointed with anyone else...... and we would be in by Christmas, whereas it would be the middle of next year if we start again with another company I am starting to think it is time to "flip a coin" 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 28801 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16558 It seems very clear to me that your contract states that a security account does NOT need to be established so the answer to the builder is NO. If in doubt find a contract… 1 8510 |