HIA Contract

Anyone signed the HIA contract without the plans/ drawings etc

We have accepted the final tender, and our builder will be sending us only the HIA contract at this stage.

We will need to sign this and send them back before they close for holidays to get the contract in place - to qualify for the FHOG (sign before 31.Dec)

Now we wont be getting the drawings/ plans/ elevations for another 3-4 weeks (meaning we sig the contract without the drawings)

Can the drawing be signed after you have signed the contracts ?

Any one in the same boat.

Any advise re what to "look for" in HIA contract would be highly appreciated.

TA

^^^ This is exactly what we did, we had picked the plan we wanted, modified it but never saw the "real" plans untill after we had already signed the contract, we then had to sign the plans once they came back from the drafter. No big deal for us, but all builders are different.

oh, I won't be doing that for sure but of course everyone is at liberty to do what one deems fit. In the buidling contract the plans and especially, the price schedule should be clearly spelt out. The price schedule should also include the site cost, plus any provisional cost and prime Cost. Any termination to contract after signing attracts a fee amounting to 25% (I think) of the total contract price.

Guys.. please i need more..

What to look for in the contract..

From the posts it looks like:

It is a standard HIA plain english contract
Where we dont have much to say/ change/ negotiate

If that is the case, what is the point of going to a solictor?

All of you who did referred a solicitor, what changes did the solicitor recommend, and were you able to get those changes incorporated..

Am I worrying too much..

Anyone else signed the contract recently.. how did you go with your contract signing..

is it the red or green contract?

The red contract is horrendously dangerous

Make sure your liquidated damages amount is realistic. What it should be, on a weekly basis, is whatever you are building would rent for (this is your damages).

Got the HIA contract today.. 2 copies..

Is that what it is ??

Questions after the first glance at the contract:

Page 5: Warranty/ Professional Indemnity Insurer: Name of insured: Is it me or the builder?

Where does it states a site start date ?

3% deposit : Does it includes $1000 (initial deposit) + $2000 (Deposit with Tender)

Page 7:
4. Person responsible for obtaining and paying for planning approval and number of days to obtain planning approval.

Is this builder or owner ?

Thanks for your advise/ feedback.

Cheers

(S&P, Matt - where are ya ?)

I was hoping to get some advise re the contracts..

PLEASE.. share your experiences..
What are the "must look for" items in the contract..

TA

Hi D2B,

I can't give you any legal advice as I'm not qualified but I can tell you what is in my HIA contract.

* The Warranty/Professional Indemnity Insurance is in my name
* It doesn't state the site start date but only state Commencement must occur within 21 days after the builder receives relevant documentation see Commencement and Building Period section, further it states the building period starts on the actual day of commencement (which is when they start on your land).
* In our contract we are responsible for the planning permit and we have 21 days, but we didn't need it as we bought land off the land developer, so all planning permit has already been done. Check with your builder and land developer on this.
* Depends on the builder but majority of builders include the initial deposit with the 5% deposit of contract price e.g if you put $1k deposit at start and the required 5% deposit on the contract is $10k then you will have to only put in another $9k to make up the 5%.
* Look out for:
- Special conditions to the contract
- The Liquidated Damage amount, we have $250 per week.
- Ensure that the contract price is what is agreed to at the start.
- Any Prime costs or Provisional Sum
- Number of days for completion
- Which progress payment method used e.g method 1 or method 2, it is preferably method 1 to be used as it's the same as in Domestic Building Contracts Act.
- Meanings of each stage and what it includes.
- Number of days to make progress payment, we have 7 days.
- Check and recheck contract drawings and specifications. It is noted that you haven't got the drawings and specifications, I'm no expert but I don't think you have a proper contract but others on this forum might be able to answer this.

There are heaps of information on what to check for in building contracts on this forum so do a search.

I hope what I wrote is of some assistance to you.

Check the contract days, whether they actually specify working days and fully understand you agree with them and if possible have an end date, or at least an official start date.

Confirm reimbursement amount if they go over this time. Most contracts don't even cover your rent.

Confirm you access to site rights.

Once you start your building process, make sure you communicate anything and everything to your builder in writing, with email read receipt. If anything is verbalised to you, confirm it in writing.

Also have a timeline with what work is taking place, record of weather etc.

Take regular, dated photographs.

Good luck.

D2B,

If you are uncertain as to some of the content of the contract that you are being asked to sign then take it to a solicitor that has experience in property. For a few hundred dollars you will get the peace of mind you seek.
My (non-legal) opinion is that the HIA (and other industry specific contracts) do not favour the client, they are heavily weighted in favour of the contractor - which you would expect in something written by the industry...
Don't be afraid to ask for contract ammendments, especially liquidated damages, $1/day is hardly fair compensation to you when the builder over runs the project.

Andy

Thanks for all the replies.
Much appreciated.

The following is where I seek any feedback/ advise plz:

Page 4:
Lending details is empty. Should be fine empty or do I put in the name of my Bank.

Page5:
Warranty/ Indemnity Insurer > Name of Insured : My Name

Page6:
Time of completion : 270 Days
(No where mentions the start date or finish date though)

Page8:
No. of days to make progress payments: 14
(Shouldn't it be 21 :p)

Agreed interest for late payment : 13.9%
Agreed damage for late completion: 250 pw

Percentage applicable to extra work : 20%
What is this ??

Agreed damages for delays : 250 pw

Page 9: Prime Costs and Provisional Sums
The page is crossed out. Nothing there.

Page 12:
Payment Method 2
3% > 10% > 15% > 35% > 25% > 12%

The breakup of Method 1 is also the same.
3% > 10% > 15% > 35% > 25% > 12%

Then WHY Method 2??

Page15 onwards - It is all Definations of the clauses. As printed by HIA I suppose. So would be standard.

Overall looks okay.

Look forward to any advise.

TA

looking at it, they seem pretty standard and they only fill up a few items.. will have a read again at my contract and see what else i can find..

All,

Sitting on my contract documentation (reading it.. and trying to make sense out of it)

Have signed the HIA contract booklet. It appeared to be standard and everything looked okay.

After signing the HIA Contract booklet, realised that the Final Amount (which is same as in the Tender) is wrong. Reason: Poor Maths may be. I added up all the items and it gives a different figure.
Also they have charged twice for 1 item. So the Tender amount will change.

Do we need to change the HIA contract as well?
Or Can I get a credit for the difference at a later stage?

Other documentation.

Have found some issues with the Color Selection Document/ Electrical Plan (Couple of things went missing, again getting the same rectified)

Now the important bit where I need help.

Contract Specification Document

Is this standard or can you get things changed in this document?

When people recommend going to a solicitor to get the contract reviewed, is it the HIA Contract booklet or is it this Contract Specification Document ??

I know both - but given that I am okay with HIA contract.
Shall I bother going to solicitor for the Contract Specification Document alone ??

Thanks for your help with this.

TA

I would at the very least get the cotract price correct before signing.