Browse Forums Building A New House Re: Help! Builder wants us to sign contract with provisional 2Sep 03, 2010 3:53 pm ~*~Moved in on the 16th April 2011~*~ Re: Help! Builder wants us to sign contract with provisional 3Sep 03, 2010 3:58 pm First Home Builders Clarendon Roeberry 29 Arena @ Officer Colours Selected 12/08/10 Tender Signed 26/08/10 Contract Signed 12/10/10 Building Permit Issued 22/12/10 Site Start Due 14/01/11 (fingers crossed!) Re: Help! Builder wants us to sign contract with provisional 4Sep 03, 2010 4:00 pm contract signed: Nov 09 Released to Construction: 23 Jul 10 Slab poured: 9 Aug 10 Frame completed: 30 Aug 10 Windows & Gutters: 7 Sep 10 Bricks: 15 - 23 Sep 10 Roof: 24 Sep 10 Gyprock: 20 Oct 10 Lockup: 25 Oct 10 Kitchen: 27 Oct 10 Tiling: 6 - 9 Nov 10 Painting: 17 Nov 10 Carpet: 30 Nov 10 PCI: 15 Dec 10 Handover: 17 Dec 10 https://forum.homeone.com.au/viewtopic.php?f=31&t=35943 Re: Help! Builder wants us to sign contract with provisional 5Sep 03, 2010 4:45 pm First Home Builders Clarendon Roeberry 29 Arena @ Officer Colours Selected 12/08/10 Tender Signed 26/08/10 Contract Signed 12/10/10 Building Permit Issued 22/12/10 Site Start Due 14/01/11 (fingers crossed!) Re: Help! Builder wants us to sign contract with provisional 6Sep 03, 2010 5:44 pm Arena537 But there's still so much to learn! yes, yes there is but you've come to the right place We didn't have any provisional sum items in our contract, basically we pinned them down on everything before hand as much as we practically could. Now thats not to say that the final price didn't change, in regards to site works as its a new subdivision in the case that your land isn't ready before you sign the contract (like we were) hence the builder cannot reasonably assess site costs there is three paths. One is the provisional sum cost - the benefit of this is they can take an educated guess for now, but as its provisional you need the final sum before the bank will go unconditional for the approval prior to construction and you may or may not be in for a nasty surprise depending on your lot. The second is to do what we did, the builder used provisional data based on information from the surrounding area and a 'preliminary' soil test they completed to get an idea of what was under there, basically enough of an idea that the slab etc could all be engineered in order to provide a fixed price contract. However there is a cavaet in this, that the builder will conduct a second soil test (at your cost) after you own the land to ascertain the exact engineering etc if there are any changes howevever they charge te difference by way of Post contract variation. The downside being you need to basically cough up the extra, which depending on your individual circumstance mean going back to the lender to increase your loan prior to going unconditional. This may also give protection in that if it exceeds a certain percentage amounf of the conctract you may be able to end the contract without all the penalties applying. But best to check the individual contract you're being offered. The third option that some builders offer is to go with fixed price site costs, that is they make an assessment prior to going to site and you agree to a fixed sum amount. The benefit of this is that you win out if they come across something unexpected but that could have been forseen, however most builders cover themselves with these amounts by including slab upgrades etc, so that if when the final engineering comes back you also don't get refunded the difference if the upgrade isn't neccesary so its a bit of a gamble. So its probably not the end of the world, personally I didn't want to sign a contract with provisional sums becuase unlike the second option above, they can vary for any reason. Whereas there are restricitions on the basis under which they can increase it via PCV (namely it could not have been reasonably forseen at the time of the contract signing). Either way at least you're going in with your eyes open, best advice is seek some independent professional financial advice so you can look at your specific individual financial circumstances as well as what specific requirements your lender may have in regards to provisional sums. Our Build - Places Fairhaven 23+ - https://forum.homeone.com.au/viewtopic.php?f=31&t=28045 Our Landscaping - Belial's Backyard - https://forum.homeone.com.au/viewtopic.php?f=19&t=45375 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16568 1 2992 Hi All, I just wanted to close this topic out with an update. So we ended up agreeing to a number with the insurance company, and after an extensive amount of hand… 8 23405 |