Browse Forums Building A New House 1 Apr 01, 2010 12:20 am Hello. Today the builder has increased our building price by $11,000 due to the delay between when the tender (not the contract) and the building will start (next month). This particular builder offers a 180-day fixed price from the time of signing the tender, and we are now at about twice that length of time (one year). I know that plenty of you have been in the same situation, and was wondering how this figure compares with what others have had to swallow? As an interesting side note, the builder has stated that clause 2.1 in the contract allows this. This is the clause that states that: "The owner must, within 21 working days of receiving DA approval, fulfill the following requirements....If any of the above requirements have not been satisfied by the Tender expiry date or within 21 working days of this Building agreement, then the builder may revise or terminate this contract." Note the contradictory periods: either 21 days from DA approval, or the tender period expiry, or 21 days from contract signing. As far as I can tell, the Builder is on potentially shaky ground in terms of relying on this clause. Of course, these periods would have made far more sense if the contract is signed after DA approval (not our case). Re: Increase in contract price due to delay starting? 2Apr 01, 2010 7:34 am It's standard to apply price increases if site start doesn't happen by a set time ....but the amount seems excessive. We had delays due to a number of outside causes, and were aware that an increase in the base price was coming and that we'd cop it if we couldn't start by the date in our contract. We were OK with that, but it was only $1,000. Re: Increase in contract price due to delay starting? 3Apr 01, 2010 8:49 am I wouldn't say $11,000 is excessive, especially as its been almost a year since you signed anything and building prices would have gone up 3 or 4 times since then (builders like to put the prices up about every 3 months). We got a $3,000 increase 90 days after we signed our contract due to external factors. Re: Increase in contract price due to delay starting? 4Apr 01, 2010 9:41 am Our contract increased by $3,000 in August/September 2009. The tender was presented to us 9 months before (November 2008). Your increase seems to be a bit too much to me but I'm guessing here, as I can only compare to our base price of ~$236K and the tender price of ~$374K.... ... built a Promenade with Clarendon. viewtopic.php?f=31&t=25104 20-10-09 - excavation and piering completed ... 12-04-10 - Basins fixed. Connecting to the electrical grid 23-04-10 - PCI 07-05-10 - HANDOVER! Re: Increase in contract price due to delay starting? 5Apr 01, 2010 10:03 am kek It's standard to apply price increases if site start doesn't happen by a set time ....but the amount seems excessive. We had delays due to a number of outside causes, and were aware that an increase in the base price was coming and that we'd cop it if we couldn't start by the date in our contract. We were OK with that, but it was only $1,000. I agree....to me that does seem excessive! We were the same as Kek - delays for a year due to outside causes (Council ) but thankfully we didn't have any price increase. Have they said what the extra $11,000 is for? Re: Increase in contract price due to delay starting? 6Apr 01, 2010 11:06 am I had this with my builder, as I put in my order early to secure a floor plan that was changing. My schedule is 2% increase after 6 months, and a further 1% every quarter after that. But since then there was a reduction in standard inclusions, and also two price increases. Some people don't have time to do the job right the first time, but seem to have plenty of time to fix their mistakes. Build Thread Just to makea point about this, an approach that some people have found sucessful in negotiating these rises down, Is to provide some workings to the builder, specifying… 4 65080 Hi, My home construction is complete, and the handover is scheduled next week. However the construction has been delayed and I have raised this to the builder. The… 0 4422 1 1042 |