Browse Forums Building A New House 1 Nov 09, 2009 9:33 am Hi all Just got our building contract on the weekend to look at prior to signing apparantly a standard HIA one "practical completion" - seems a bit vague , even says that appliances wont be installed until final payment received !!!!. This could still mean that theres actually a lot to be done , yet we have essentially handed over full payment. On a related topic , the progress payments are paid out in full at the point of practical completion . It it reasonable insist . hold 2.5-5% until FULL completion to the satisfaction of the owner !!!They always come back quicker if you still owe them moneyto do incomplete or defective stuff . WHAT HAVE OTHERS DONE IN THIS REGARD???? Also liquidated damages = $50 a day , yet he has a clause if we hold him up its $100/d !!!. We think we would insist on our rent being paid ie $1000/week, a real incentive to finish on time . We could offer him a 2 month extension on time free then $1000/w. What do people think and what have they done ??? Mike 2/3 of the way thru the build Re: contracts - practical completion, payment points , damages 2Nov 09, 2009 11:29 am This is wrong in several areas: Firstly, only when it's complete and the keys are handed over should the final payment be made. Once you've made the final payment, the incentive to complete is vastly reduced. If need be, have a bank cheque ready, do your inspection and if all's good hand it over in exchange for the keys. Secondly, liquidated damages should be equal to whatever the place you are building would rent for. This is your damages. I can't see how you could hold them up. Make sure thay have everythign before you sign up and make sure the contract states that they have everything. Should there be a delay on your part, the damages for the building company would only be the cost of fencing/toilet/etc, which will be very small. I'd mention that the damages to you are whatever the completed place would rent for. Ask them to mention how their damages are calculated as $1000/week. Remeber, liquaidated damages are exactly that, recovering of damages only. It is illegal to apply penalties. Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: contracts - practical completion, payment points , damages 3Nov 09, 2009 8:37 pm My builder tells me the oven/cooktop doesnt get installed until after payment due to theft. I have my inspection this week and I will check with my inspector whether this is normal. i believe it is the same for the HWS as these get stolen very quickly. Re: contracts - practical completion, payment points , damages 4Nov 09, 2009 8:43 pm Don't know about other builders... but where I work, you don't get your keys until you've paid everything. Saying that, they would have completed everything so you don't have to wonder if it's all done. Built with New Generation (Summit Homes) We own land!... with a slab on it! Plus a shell of a house with stuff inside ! It worked for me in getting all non notified rain days removed from the builders claim, although the LDs was only $50/day 7 5948 The HIA contract, in the term & conditions section states that "Commencment" is deemed when the drainage is started or the piers are dug or the slab is formed up (incase… 2 6177 |