Browse Forums Building A New House 1 Jun 03, 2010 10:44 pm Do Simond Homes Owe You Money? Simonds Homes use the HIA New Homes contract. If Simond Homes use the provisional sums listed in your contract or you have a contract variation, the builder is entitled to charge a margin, which is stated in the contract. In my case this was 25%. The builder must present, to the customer/owner, a copy the invoice from the tradie/supplier and also the Simonds invoice which includes their margin. If my tradie/supplier invoice is for $100, then Simonds Homes should charge me $125, i.e. +25%. When Simonds invoiced me I found that they charged me 33% not 25%. I discussed this with the HIA and they advised me that Simonds had made an incorrect interrpretation of the New Homes contract. I presented this to Simonds, and after some protracted discussion was given a full refund for the over charged margins. Simonds did a tricky calculation and determined the margin was 25% of the final figure, not 25% of the original invoice. When you do the maths this comes to 33% - which according to HIA was the wrong interrpretation. So was this a one off error - unfortunately not. I have an aquaintence who also built with Simonds a couple of years earlier. I had a look at their invoicing and found that the same error had occurred. Worth checking the invoicing on provisional sums and contract variations - Simonds Homes may owe you money. If you have an issue you may be best writting to Simonds Homes advising of your concerns and if you do not get a satisfactory response register a complaint with Consumer Affairs. Re: Simonds Homes Buildng Margin - Paying too much? 3Jun 28, 2010 3:18 pm They must have changed their tactics because they don't charge you 33% not more but only 30%. The double handling invoice is calculated as follows: The pre GST figure ($511.36) is divided by 0.75 = $681.81. Then add the GST ($51.14) back onto this total which gives the final figure of $733. This is the formula we have been given to calculate builders margin. If you add 25%, this is mark up, not margin. I have even looked up the meanings of margin and mark up on the net. Another aspect of building that the builders manage to screw you over. Re: Simonds Homes Buildng Margin - Paying too much? 4Jun 28, 2010 5:16 pm Adam.M They must have changed their tactics because they don't charge you 33% not more but only 30%. The double handling invoice is calculated as follows: The pre GST figure ($511.36) is divided by 0.75 = $681.81. Then add the GST ($51.14) back onto this total which gives the final figure of $733. This is the formula we have been given to calculate builders margin. If you add 25%, this is mark up, not margin. I have even looked up the meanings of margin and mark up on the net. Another aspect of building that the builders manage to screw you over. Yes, I agree If you divide a number by 0.75, it gives you 25% margin or 33% mark-up. I would have said that Simonds got it right and the HIA got it wrong - margin is margin. Do remember that it is Simonds (or any builder) who must administer the job and guarantee the work. Ed "ECOECO" At 'EcoEco', we design windows, we design the best windows, we do it for you, so that when you’re happy we are happy. Tel. 1800 326 326 It will be neat but you won't have much freeboard. At least they are not weep holes. Are you in a high intensity rainfall region? The regulatory slope is only required… 3 8267 Firstly, if your house is still under builder's warranty (10 years in Victoria) you should have no need to crawl into roof space but let the builder handle it, unless you… 3 5640 Not sure if that works? I was told the issue is the headspace clearance requirement on step 4. My builder is proposing shifting the beam 310mm towards the kitchen...I'm… 2 2569 |