Received invoice for additional concrete

mek · Apr 05, 2007 6:39 pm

Today we received an invoice from our builder for extra concrete due to additional height and depth of footing beams as directed by surveyor and engineer (the invoice says). This without any prior phone calls or advice or warning from the builder that it would be coming.

Is this common practice? Do I expect too much?

vanderlay · Apr 05, 2007 6:55 pm

I'm not sure how common it would be, and they certainly can do it as per the normal hia type contract...but I probably wouldnt be happy with the lack of communication/service!

So...no, i dont think you expect too much!!

brittany · Apr 05, 2007 7:43 pm

Can I ask who you are building with and is it a so called "fixed price contract"?

Casa2 · Apr 05, 2007 8:27 pm

I though any variation to a contract requires a signed acceptance from the customer before any expenditure.

vanderlay · Apr 05, 2007 8:37 pm

I dont have our contact in front of me, but i beleive there is something in the standard hia type contract which states something about work needed to comply with regulations in building code or council regulations can be performed and charged for...(no idea of the exact wording)

So in this case they are probably using that clause to charge for the extra work - as it was directed by surveyor/engineer.

Many volume builders will do an absolute fixed price contract/tender, but others wont and will add on things like this.

If any of this is wrong, feel free to correct!

Casa2 · Apr 05, 2007 8:43 pm

I see two problems:

1) I would never sign a contract with a "discretionary" amount.

2) Even if it is required, there is no price competition. I could easily quote at-cost for a job and then charge ten times the normal cost for any additional items, which to a certain degree are at my discretion. Lots of work and lots of money!!

mek · Apr 06, 2007 9:18 am

Without getting too emotional (we have not heard from the builder yet even though we left a message), this falls (as far as we understand) under provisional cost items in the contract and it was listed under there (the only other item was carpet).

We were surprised to find though, that the additional concrete was around 50% over the allocated m3!

perryr · Apr 06, 2007 10:37 am

Doesn't sound too flash to me. Even though there may be a provision for it in the contract, I'd be asking for further information, such as "who is responsible for the gross stuff up in estimating a basic home building slab".

It may be just me - but check that you are getting what you pay for, I think you'd be entitled to see the invoice from the concrete suppliers which states the amount of concrete delivered.

Perry

PS: Does this mean that fixed price contracts (such the PD are not realy fixed price?)

Stewie · Apr 06, 2007 11:58 am

perryr

PS: Does this mean that fixed price contracts (such the PD are not realy fixed price?)

I think you're right there. If i'm not mistaken having such a disclaimer in a contract allows builders to underquote and then add variations post contract.

How would this work when working out bank loans. We have contract signing in a couple of weeks (henley), and are in discussions with our bank for our pre-approval which henley require at contract time. What happens if we ask for a loan amount and then prices are increased due to post contract variations??

I.e. the bank accepts your original loan amount request and then does not when you return asking to increase by for e.g. 10k? I say that because we are basically borrowing to our max cap, and don't know what will happen if after contract talks we are hit with more costs.

So my question would be are we as clients allowed to include a get out clause in the HIA which will allow us to walk away if pricing increases by x amount greater than tender price (e.g. 3%).