Browse Forums Building A New House 1 Jul 01, 2011 2:22 pm Hi, Looking for some advice. Just picked up contract and noted that the builder has not included any penalties in the contract for late delivery (i.e. there is no weekly penalty if he goes beyond the completion date). Enquired about it, he mentioned that he can add a weekly penalty but that would mean the contract price goes up. He also mentioned that penalty rates also do not apply to us (i.e. if we were to change items that caused a delay in construction, the we would not incur the penalty). We are on a very strict budget and he believes the construction should take 14 months, but the contract allows for 18 months. Any thougths Re: Builder Contract Penalties 2Jul 01, 2011 2:33 pm 14 months sounds like a very long build time... What exactly are you building? Re: Builder Contract Penalties 4Jul 01, 2011 2:49 pm 18 months does seem like a long time. I really don't know, but it would concern me that without any penalties (thus incentive to finish) for going over the contract time, the build could go on forever! Have you spoken to anyone who has actually built with them? Re: Builder Contract Penalties 6Jul 01, 2011 3:05 pm We built our double storey on a sloping block (cut and fill) and it took around 15 months but our build was unattended for most of the time and it should have taken 6 or less. Are you building with one of the big well known brands or with a smaller custom type of builder? Remember that you will be paying interest too and it will hurt. You will probably be so desperate to get in that you will be more amenable to not having things exactly as you originally wanted. He knows this.... Re: Builder Contract Penalties 8Jul 01, 2011 3:09 pm Hi 3Times. I agree, but we have waiting to build for 5 years now and three blocks of land later. I'm thinking about my interest hurt as well. But it comes back to, an increase in price for $10K, which we pay upfront or chance it to get back a portion of it IF he is late. I tell I'm already tired Re: Builder Contract Penalties 10Jul 01, 2011 3:17 pm 3timesbuilda We built our double storey on a sloping block (cut and fill) and it took around 15 months but our build was unattended for most of the time and it should have taken 6 or less. Are you building with one of the big well known brands or with a smaller custom type of builder? Remember that you will be paying interest too and it will hurt. You will probably be so desperate to get in that you will be more amenable to not having things exactly as you originally wanted. He knows this.... I agree with the above and from what you've just said, I think the builder already knows your tired and desperate to go ahead let alone after 18+ months building, that you will accept less than what you paid for, less than what you really wanted. I know it's a long time but if this is your dream home, your forever home what's another 12 months to wait to find the right builder?? The only thing you could possibly do is threaten to walk... then see what he says? It's very difficult and I truly feel for you and wish you the best. Re: Builder Contract Penalties 11Jul 01, 2011 3:18 pm buckleysg Hi Mimi, It is a standard HIA Contract for new Homes (Victoria). Got a quote from the lawyer, said it would cost $350 + GST to review, cheers S I think it would be money very well spent. Re: Builder Contract Penalties 12Jul 01, 2011 3:20 pm mimi23 buckleysg Hi Mimi, It is a standard HIA Contract for new Homes (Victoria). Got a quote from the lawyer, said it would cost $350 + GST to review, cheers S I think it would be money very well spent. Thanks I was thinking the same thing..... I believe that liquidated damaged should be amount of actual loss to the owner from the delays. The issue in all of this is building industry lobbying and contributing to… 5 3439 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16556 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 23401 |