Browse Forums Building A New House 1 Mar 23, 2011 7:31 am Hi I am aware that if i hold up the build process i can be penalised for this by the builder. However, if the builder doesnt commence within the contracted time (in my case 22 weeks after signing the contract) are there any penalties i can/should/should not impose on my builder (SA)? thanks Re: Imposing penalties on builders 2Mar 23, 2011 10:51 am Depends on what your contract says. Usually you don't have penalties that you can extract from your builder because they have large legal departments full of solicitors working full time to write contracts fully in favour of the building/developing company. Innocent buyer comes along and signs these contracts (believing that lovely lovely sales assistant with the nice smile) without taking all this writing to their own independent solicitor. The builder can just walk all over the buyer because the buyer has accepted and trusted the builder. It's pretty astonishing how young buyers and especially FHB get stomped all over with these one way contracts. When we built we did it in reverse because at the time it was a builder's market and the builder wouldn't accept a penalty clause. Instead our lawyer put in a rewards clause for the build to be finished on time. The reward increased with every day they finished earlier than the stated finish date. Guess what - we got everything done a week earlier and cost us less $$ in delay costs. Remember this for your next build. Good luck. Re: Imposing penalties on builders 3Mar 24, 2011 9:00 pm Thanks Amadio, will definately remember for next time. Wasnt going to use it now, but thought it might come in handy to have it up my sleave later. thanks once again. Re: Imposing penalties on builders 4Mar 28, 2011 9:21 pm Hi Drayto, have you got a start date from your builder yet? Re: Imposing penalties on builders 5Mar 28, 2011 10:00 pm Penalty clauses are illegal...I'll point you to a thread were I posted about this rather than restating. viewtopic.php?f=31&t=26057&p=352240&hilit=Penalty+clause#p352240 mmm....donuts Homer Simpson 1956- Links: Site Costs Ready Reckoner | H1 Addiction Medical Advice | Château TDL: The Backyard 8 48955 They already have two well known ones (HIA & MBA) that many new home buyers mistakenly think are regulatory bodies that Joe Public can complain to. 6 27841 Thanks again Simeon for being so elaborate. Appreciate it. Its gives us a very idea. Kind Regards 4 16354 |