Browse Forums Building A New House 1 Nov 25, 2009 8:30 pm I am a bit confused on this. In our contract it states that any pre-start variations are to be paid on completion of works. Now I took this as at the end of the build as this is what I thought most builders do. (teach me to just "assume"). Anyway, our variations came in at 50K, which we are or were planning on paying ourselves. We have all but about 8k of this in the bank now and it will only take us around 3 months to save the rest. My problem is, I'm now confused as all the final documentation has been sent off to the bank, and I've noticed that it has a new payment schedule and that extra amount is just mixed up with the progress payments in bits and pieces. And the real problem is that the bank told me a while ago, that anything we are contributing would need to be paid before the bank pays out anything. So the deposit, which is 27k, we can pay straight away, but the next payment is the slab, and that's 59k, so we will need to pay the balance of what we owe then... yes??? Which they are saying as soon as we get unconditional approval (if we get it), they want the deposit within 2 weeks as that's when they will be on site, so then the slab will be done not long after that, and we won't have that extra yet. Am I making sense??? If worse comes to worse, I guess I can borrow a couple of grand of family, but I'd rather not. Argghhh, I've built twice before, and it's never been a hassle like this, it was straight forward. With any luck the bank will take the new contract pricing into account and lend us the whole amount... yeh and pigs might fly lol. Anyway, back to the original question... when and how did you pay for your variations?? (with your own cash, or part of the loan) Re: variations - how and when did you pay for them 2Nov 25, 2009 9:00 pm There's kind of two parts to your question. Any variations we made (upgrades etc) were adding into our whole price and mixed through the payments. Any post contract variations come off the last amount. Also, any of our cash had to be used for payments before the bank would release any funds. This, from what I understand, is standard procedure. I leave you to fend for yourself, figure things out yourself. Terrence Malick Re: variations - how and when did you pay for them 3Nov 25, 2009 9:12 pm Thanks Joles, that's the confusing part, as these are post contract variations, and the bank had already received the contract and were basing our loan on that. However, it's almost like they have done a new contract, which will be good if the bank takes that into consideration instead, but I highly doubt they will. Re: variations - how and when did you pay for them 4Nov 26, 2009 1:45 pm I know for me, my variations actually reduced the contract price by around $13k. I still had to make progress payments based on the percentage of the original contract price meaning the variations are taken up in the final payment. I will barely have a final payment left as this has almost covered it. I am guessing it would work both ways, as in, if you increase the contract price, you still pay the progress payments as per the contract and the variations are added to your final payment. But I am only speculating. Current build Porter Davis Brookwater 49, Eucalypt Wollert Build: 24th Jul 2015 - Approx Mar 2016 Previous build DFH Columbia 21, Lyndarum Epping North Build:20th Jul 2009 - 18th Dec 2009 Hi Mofflepop, I would recommend finding a building designer to prepare plans, they should design to your specified budget. The benefit is you can tender the project out… 9 20432 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 8512 The fastest thing a builder will do is bank your cheque, those systems work perfectly with lightning speed, everything else is slow burn. Just the way it is. 1 8711 |