Finally this morning i and wife signed contract with ANOTHER builder which allow us to bring someone else to inspect the house pre handover. We came to this builder about 4-6 months ago but was put off because it quoted quite expensive price (about $15,000 more). I have checked several addresses that the builder has given me, they are all checked out (all highly recommend the builder). Compared to my previous builder, i need to cough out $5000 more, which we think is still within budget, and most importantly peace of mind.
The builder used MBA contract and these are some of terms [COULD YOU SEE IF THESE ARE THE NORMS?]
- commencement date within 14 days of plan approval
- practical completion date is 180 days (24 weeks) after commencement
- period of payment of progress claim is SEVEN days
- defect/maintenance liability period: 13 weeks
- interest rate to late payments: 12%
- public liability insurance $5 million
- liquadated damages: ZERO (unfortunately he will not nego on this, or house price will need to be adjusted, as he claim has given us considerably "discount")
- Builder's margin: 20%.
-materials to be supplied by/carried out by owner: owner may install speaker wires.
My other question:
DO YOU write to the other builders that you decided to build with someone else?
Wish the best for me, and will update homeone on the progress.
A few things to comment on here:
1) What is practical completion? Do you get the keys and yoou can move in?
2) Is that 12% interest per annun (that is, 0.033% per day)?
3) Completion in 24 weeks + zero liquidated damages = Completion whenever.
(BTW, did yoou agree to zero liquidated damages or just no mention of it in the contract?
4) Who cares what the builder's margin is (assuming it's a fixed price contract).