Browse Forums Building A New House 1 Jun 04, 2009 10:28 am Hey guys. We've finally almost got our contracts from the builder. Just wondering what a reasonable build time is for a 41sq house? How many days should be allowed for in the contract? After the allowable days, what is a reasonable compensation payout per week? Thanks in advance, Greg Our house thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=18335 Re: What is a reasonable build time? And resonable compensation? 2Jun 04, 2009 11:11 am Hi Greg, We are building a roughly 42 square double storey with a volume builder, and our contract period is 310 days....that's 44 weeks! A little steep, but already into our 18th week and getting plastered. I'd imagine it to be finished somewhere between another 12 and 16 weeks, making it 34 weeks maximum. Doubles take a lot longer than single storeys, so that will make a difference. After a little setback with the brickies being delayed for 3 weeks at another job, our home is going great guns! I believe $250 per week in liquidated damages is standard. Some builders may pay more, others less. You may be able to negotiate the amount with your builder. Henley - Wilshire Mk 3 ... I love my house!! Site start: 4th Feb 09 Handover: 10th Sep 09 Blog: http://stormygirlscastle.blogspot.com/ Build Thread: viewtopic.php?t=7166 Re: What is a reasonable build time? And resonable compensation? 3Jun 04, 2009 11:16 am Hi Greg, I'm building a single storey 39.5sq house and our build time is 214 days. (30 weeks) Our compensation is also $250 pw. That's industry standard for Victoria I believe. Not 100% sure on that though. I leave you to fend for yourself, figure things out yourself. Terrence Malick Re: What is a reasonable build time? And resonable compensation? 4Jun 04, 2009 11:28 am Thanks for the info. Our house is single story, and I believe they originally quoted around 9 months for the build (but usually get the homes finished before then) $250 wont cover the interest on the land, let alone the house, but I suppose that it is better than nothing. Our house thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=18335 Re: What is a reasonable build time? And resonable compensation? 5Jun 04, 2009 11:32 am It can't hurt to try to negotiate with them. But unfortunately they don't have to go above the $250. Can't hurt to give it a shot though. I leave you to fend for yourself, figure things out yourself. Terrence Malick Re: What is a reasonable build time? And resonable compensation? 6Jun 04, 2009 12:30 pm I have the impression that $250/week is some kind of standard in Vic. In NSW it's a joke with Clarendon - $15/day, and I think that's only working days, so $75/week. As I said, a joke. Built the C£arend0n Cambridge: Moved in. Happy campers. Here's our story on HomeOne I might be old, but I have no trouble finishing my... er... Re: What is a reasonable build time? And resonable compensation? 8Jun 04, 2009 2:09 pm vanessad Has your contract completion date come and gone? No, it hasn't - despite the hiccup with the stairs, we could still be looking at a handover close to the deadline. It doesn't alter the fact that the damages amount is a joke - I just hope we don't have to claim it. Built the C£arend0n Cambridge: Moved in. Happy campers. Here's our story on HomeOne I might be old, but I have no trouble finishing my... er... Re: What is a reasonable build time? And resonable compensation? 9Jun 04, 2009 2:18 pm Fair and Reasonable costs is what you should be claiming for Liquidated Damages... Fair and Reasonable is what it will cost you to rent a house should the completion be delayed... So depending on where you are, $400/wk is a better figure... Electrical Engineer... Don't hold that against me... And keen owner builder... Mainly the building part!! Re: What is a reasonable build time? And resonable compensation? 10Jun 04, 2009 2:36 pm chuth77 Fair and Reasonable costs is what you should be claiming for Liquidated Damages... Fair and Reasonable is what it will cost you to rent a house should the completion be delayed... So depending on where you are, $400/wk is a better figure... chuth is spot on. This is the only real figure. In Victoria, legislation states that liquidated damages must be no less than $250 per week. So what do builders do, $250 per week! Also, in all states (I think) the maximum deposit that can be asked for is 5% and the minimum final payment amount is 10%. So what do builders do, 5% and 10%. Which just goes to show how little power owners have. If builders weren't regulated to some degree we would be walked all over. Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: What is a reasonable build time? And resonable compensation? 12Jun 04, 2009 8:02 pm Consider yourself lucky... In Qld there is no minimum Liquidated Damages... So guess what most builders put in...$0... Most people simply accept this and sign away!! Electrical Engineer... Don't hold that against me... And keen owner builder... Mainly the building part!! Re: What is a reasonable build time? And resonable compensation? 13Jun 04, 2009 8:25 pm chuth77 Consider yourself lucky... In Qld there is no minimum Liquidated Damages... So guess what most builders put in...$0... Most people simply accept this and sign away!! So the builder can take your 5% deposit and do nothing. Oh and send you a cheque for $0 every year. Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: What is a reasonable build time? And resonable compensation? 14Jun 04, 2009 11:51 pm HellDad I have the impression that $250/week is some kind of standard in Vic. In NSW it's a joke with Clarendon - $15/day, and I think that's only working days, so $75/week. As I said, a joke. Clarendon, now there is a nightmare that I do not want to revisit in a hurry. They strung us along forever, we would see weeks of fine weather with nobody turning up at the build. When we checked our contract thoroughly we noticed that they had specified NObbys headland as the place for rainfall so that they did not have to turn up on any day that Nobbys headland received rain. If it is going to rain anywhere it will be on Nobby's headland. They were able to scam weeks of build overtime off us and did not pay a dime. NEVER EVER AGAIN! Re: What is a reasonable build time? And resonable compensation? 15Jun 05, 2009 8:36 am The $250 a week is pitiful, but better than other states (I can't believe they get away with $15 per day! ). The HIA needs to index that figure to keep up with average rentals. Our build dragged on and on and sure, we got our compensation with no arguments at all, but it was $100 a week less than we were paying in rent - and we live in a pretty cheap area, as far as rental goes. I would guess that the voume builders won't negotiate on the amount. They can afford to tell you to take it or leave it... Re: What is a reasonable build time? And resonable compensation? 16Jun 05, 2009 9:40 am Liquidated damages should not be enough to cover your rent. Why are you building a new house, probably ot have something better than you are renting. So you're paying rent and not getting the extra facilities. This is why there is only one correct liquidated damages amount and that is what the place that is being built would rent for. Typically this is much more than the place that is being rented during the build. The problems is builders don't talk about liquidated damages amount until you're committed. It's too late then and they can dictate any amount (thank goodness for legislation, particularly in Victoria). My suggestion to those starting on the building-a-new-home path is to ask when looking at display homes (or equvalent), what is the liquidated damages amount? Do this before you even give them your name. That is, do it first up. If you're not gettign at least 80% of what the new build would rent for (as a favour to the builder, it should be 100%) then move one. While you're at it, check the progress payment schedule. if it's not to your liking, again move on. Builders like to leave these two to the very end when you have no negotiating power. So find out up front and get it in writing before you pay them 1 cent. Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: What is a reasonable build time? And resonable compensation? 17Jun 05, 2009 11:48 am Mav ...they did not have to turn up on any day that Nobbys headland received rain. As I understood it, they can count as a rainy day at my site any day that it rains practically anywhere in Sydney. ...or perhaps it's somewhere specific like Sydney airport, not sure. Casa2 My suggestion to those starting on the building-a-new-home path is to ask when looking at display homes (or equivalent), what is the liquidated damages amount? Do this before you even give them your name. That is, do it first up. If you're not getting at least 80% of what the new build would rent for (as a favour to the builder, it should be 100%) then move on. While you're at it, check the progress payment schedule. If it's not to your liking, again move on. Agreed, voting with the feet is the only way short of legislation to get the building industry to be fair in terms of compensation. However, it kind of assumes home buyers are all accountants buying for someone else if you see what I mean. Home buyers are not house buyers - it's a very emotional decision settling on the design of a home that you like. People (us for example) settle on a design they like, and the crappy liquidated damages clause in the contract is not enough reason to abandon the choice and look further. On looking further I suspect you'd discover all the "majors" have a crappy damages clause, so the choices start to become limited don't they? So we put up - but it doesn't mean I have to shut up. Built the C£arend0n Cambridge: Moved in. Happy campers. Here's our story on HomeOne I might be old, but I have no trouble finishing my... er... Re: What is a reasonable build time? And resonable compensation? 18Jun 05, 2009 1:14 pm Thanks for all the replies. What is the G O for working days? Rain days? etc. etc. Our house thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=18335 Re: What is a reasonable build time? And resonable compensation? 19Jun 13, 2009 4:08 pm So my contract for a 261m2 single story in North Brisbane is like this (Based on standard HIA contract) Build Days = 200 Calculable days includes allowances for; Inclement weather; 4 days Weekend days, Holidays, Rostered Days off = 58 days Christmas Break = 15 days $30 per day liquidated damages. I think this is absolutely disgusting. But from what I have been reading, it good compared to most. The building industry needs a swift kick up the backside. Re: What is a reasonable build time? And resonable compensation? 20Jun 13, 2009 4:57 pm emptyvessel $30 per day liquidated damages. I think this is absolutely disgusting. But from what I have been reading, it good compared to most. The building industry needs a swift kick up the backside. Agreed Built the C£arend0n Cambridge: Moved in. Happy campers. Here's our story on HomeOne I might be old, but I have no trouble finishing my... er... Seems good to me. I've been told $4-5k/sqm is reasonable in Perth. 2 7825 9 19178 Thanks NativeZen! I can't wait to start landscaping, though it's going to be a while away yet. No movement on site yet as of the weekend. Hoping to see some earthworks… 3 2160 |