Browse Forums Building A New House 1 Apr 28, 2011 8:54 pm Hi everyone ... Im just trying to gather some information from other people who have had to negotiate the penalty increase with their builder once there tender had expired. What i am asking is if your builder, had a heart and gave you more time or limited the increase to a lower amount... maybe for example they capped it at $4000 or something . The problem with us is that the land registration has been delayed.. we were told February and now its apparently 3 weeks away! Problem is our tender expires at the end of next month.. Which would mean we get slugged with the price difference between when we had put a deposit on the house and what it is worth now which could mean $10,000+.. delays have been no fault of our own. And it does seem our builder has stuffed a few things up on their end which has caused more delays in lodging to council. So please id like to hear your experience with negotiating with builders if you have come to the stage where your tender had expired.. any information would be much appreciated Re: Tender expiring - thoughts and opinions please 2Apr 29, 2011 8:51 am I think you'll find some builders have a 'grace' period after the actual tender expires; but contact them now and discuss with them. You may find that as long as this is the only thing you're waiting on, they may be OK, but get it in writing. I've sent you a PM with some other details. Re: Tender expiring - thoughts and opinions please 3Apr 29, 2011 9:00 am Are you sure you get slugged the whole $10000. I think most companies have a $1000/month penalty or something along those lines. I hope they dont slug you to much. WOW cause that would be really mean Re: Tender expiring - thoughts and opinions please 4Apr 29, 2011 9:05 am i sure do get slugged the whole amount if it expires! Which is totally unfair, it would hurt my back pocket more than it would a major corperation!! I have already been slugged a monthly penalty from february!! 0.5% of contract price!! Re: Tender expiring - thoughts and opinions please 5Apr 29, 2011 9:36 am Hi NEWLYWEDS, Sorry to hear you are hit with a price increase. We also got hit with a price increase (0.5% per month) as it took longer to get through council due to neighbours having raised objections. We try to get an extension but to no avail. We only got 2 extra weeks "free" as this was over the Christmas break. Now as painful as it is you have to understand that this time limit in your contract is to protect the builder for delays that are our out of their control. This is because when you sign they lock in a price for you, while their costs can go up until they actually start building. It does not matter whether the delays are your fault or not. If it is not the builder's fault then they have all the rights to charge you a penalty (as per the contract). I think signing a contract before land registration is almost certain to get you a penalty, because land registration turns out late more often than not. At the end of the day by signing early you take the bet that you may get things ready in time (unlikely when land is not registered), or that any extra penalty due to delays would be lower than the difference in price, should you have waited to sign a building contract. Sometimes it works, sometimes it doesn't. Have a close look at your contract. There should be a clause ruling when and how a price increase is done. In our contract (HIA) the builder is allowed to charge 0.5% per month contract price increase up to 6 months past the expiry date. After 6 months the builder is allowed to completely review the contract price based on new costs at that time. Check your contract for that clause as it will tell you whether your builder is allowed to charge you a whole $10,000 in one go or not. DKP. Re: Tender expiring - thoughts and opinions please 6Apr 29, 2011 12:49 pm sucks tho doesnt it, that you pay for everyone elses delays!! Example if i didnt settle on the land within the 14days and i was a day over they would probably show no mercy... Like imagine if it was us delaying them for close to a year.. we as consumers have no rights really, the big corperations just roll on!! Re: Tender expiring - thoughts and opinions please 7Apr 29, 2011 1:27 pm You can't blame your builder. We were in exactly the same position, but this is the risk you take by locking in before your land has settled. I think if you did your figures on todays prices for the house, you'd still be ahead by paying the penalty. You can't go to Holden and say I want a Commodore, but I'll pick it up when I get my licence in 2 years.... but I'll have a brand new model... but at this price. It's basically the same thing. If it makes you feel any better... out land was delayed even longer. I leave you to fend for yourself, figure things out yourself. Terrence Malick Re: Tender expiring - thoughts and opinions please 9Apr 29, 2011 5:21 pm While the builder isn't in the "wrong" here and it can unfortunatly only be you that has to "cop the blame" it does sound like a very sad situation. I don't know what sort of climate you're building in right now (by climate I mean, how busy builders are in your area) however, in Perth, builders are not THAT busy. This means that trades are MUCH easier to get a hold of/are in less of a demand, which means their rates MAY (MAY(MAY(MAY))) have dropped. This is in your/the builders favour. However... Now the bad part. I work in the building industry in Perth. I know that things have had price rises. In particular, Corinthian Doors and Gainsborough door furniture have had their first price rise in 2 years. Only particular lines are effected, but this is exactly why tenders expire. I know Caroma have also had rises. The only thing I can suggest is IF you don't like the figure they come back to you with, as another builder in town what it is worth to build almost the exact same home you're already building, just to try and see if your builder is being honest. In all likelyhood though, the cost of building a home wouldn't have dropped, and there isn't a reason why the builder should absorb any new costs. Builders are hard to trust though. Wishing you the best! viewtopic.php?f=31&t=46664 Building in Baldivis, Western Australia. First home, with Impressions. Would love it if you were to stop by some time! Re: Tender expiring - thoughts and opinions please 10May 01, 2011 5:13 pm yeah plus builders factor in there markups (20%) into the upgrades... so we spent around 90 grands worth of extras with them , now think how much out of the 90 grand they pocket! i've tried and 'ive tried to argue with them , seeing if we can come to some sort of compramise... Its with the manager now so fingers crossed! If not ill be going direct to the tile and carpet place and cut the builder out.. i have already go quotes which are 40% cheaper using the same thing... so yeah. Just have to let it take is course and see what happens, Hey. Head to a metal and decide on which profile you will use first. Profiles with larger corrugations can greatly change the appearance of the color in different… 0 3381 Were struck with: Colorbond Ironstone Grey roof and cream windows. What color should we render and paint the garage door to tone down the cream windows? 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