Browse Forums Building A New House 1 May 06, 2009 10:30 pm Hi All, I am a first home buyer and have placed a deposit yesterday with a builder to get a tender. I don't want to miss the first home owner grant. Is there a possibility to sign the building contract based on the fixed price tender and initial sketch. Or do we need to wait for the final drawings? I believe that the final drawings would arrive after 30 June. Can someone please advise about the possibility and risks involved? Are there any first home buyers who are in a similar position? Re: Building contract based on tender and sketch 2May 07, 2009 12:43 am Hi Prerne Welcome to the site. I’m no expert and you have to make up your own mind as to what you may be getting into if you do as you say. Prerne you have asked a very important question. Yes, there are some risks involved. You can get a contract faster if they put in provisional sums these will also be for your site costs. That means they have a guess at that it might cost. Please read what a provisional sum is first. Its not fixed it’s a guess that can go up or down, usually up. If they give you a fixed site cost before soil tests and contour survey it will be loaded to cover any extras the builder may find, eg deeper footings H class slab etc. Personally I would not go with a provisional sum on site costs. If it is a genuine fixed price for all costs and you are happy to pay that then you know what the base price will be. As you don’t have final working drawings, you may find a few things wrong with them when you do get them back. You may not like the size of a room or want to move a wall what then, more money $$$. In an ideal situation ( if you had more time) you would check those drawing over until your 100% happy. You may also find that the service you get may not be as good after you have signed on the dotted line. You may like to let us know who you are building with as some of the other members may have built with them and know what they are like. Please becarful what you are getting into and dont rush in. Wish you all the best with it. Cheers KW………… “It's just as unpleasant to get more than you bargain for as to get less” George Bernard Shaw. Re: Building contract based on tender and sketch 3May 07, 2009 9:37 am Hi KW, Thanks for your reply. I am planning to go ahead with Eden Brae builders. They are doing the soil test this week and would come up with fixed price tender including the site cost. Since I am building my first home, I have no idea what to expect. Also not sure if the bank would accept such pre-final drawings contract? please advise. cheers. Re: Building contract based on tender and sketch 4May 08, 2009 12:39 am Hi prerna, In relation to the bank, in our situation, they were happy to give us pre-approval based on just the initial tender, without any plan drawings. However, they will only formalise the loan and give us actual approval (and then draw down the loan) once we have received approval from the Council and signed the building contract. I'm not sure that you'd get definitive approval for your loan based on the tender alone - with or without formal plans being drawn up. Perhaps check with your bank on what their position might be? Good luck. Masterton Santorini Grande 23/01/09 First Tender 17/11/09 Contract signed 25/01/10 Slab 27/03/10 Frame 7/5/10 Bricks 1/07/10 Roof 9/7/10 Lock up 24/8/10 PCI 16/09/2010 KEYS! viewtopic.php?f=31&t=16418 Re: Building contract based on tender and sketch 5May 08, 2009 2:22 am Prerna Hi and glad to hear its fixed price. Your soil tests results may take 6 or 7 working days to get back to you. Make sure they explain them to you. Also the quote. Do be scared to question it. And please don’t sign the contract straight away. It looks like you will have a contract to sign by June 30 so don’t stress. Give some thought to taking it to a solicitor to check it over first. None of us know what to expect until it’s over but don’t be surprised if the price is more than you first expected. They will base your costs on the soil & contour tests. You may be surprised as site costs can add up. I hope the quote they give you is acceptable. Please let us know how it turned out. Regards KW…….. “It's just as unpleasant to get more than you bargain for as to get less” George Bernard Shaw. Hi We are building in the Hunter Valley, our soil test is H1, our builder has advised us they need to have a letter signed for Fair Trading as the new drainage standard… 0 3551 thanks. the above one is white Mat tiles and have gripness so going for this Mat tiles for both indoor and outdoor. Beaumont told it can be used in both indoor and… 2 1670 Hey. Head to a metal and decide on which profile you will use first. Profiles with larger corrugations can greatly change the appearance of the color in different… 0 3384 |