Browse Forums Building A New House 1 Sep 21, 2011 9:21 am Hi All I am signing my building contract this friday, what are things I should look out for? My builder so far has been very good, and we have now finalised the quote with everything we want so now I have asked him to put together the building contract so that I can now get my finance sorted out. What are things I should look out for in the contract ? Thanks Ben Re: Building Contracts - Things to look out for 2Sep 21, 2011 12:40 pm We just signed ours, and the main thing for us was making sure that we were paying the standard progress payment percentages instead of the builders 'alternative'. Basically the builder prefers to get more of the money earlier in the process, and well ... we don't! It can make a fair difference to interest over the period. They were willing to change it once we asked though. The other thing I'd say is don't be afraid of asking silly questions. If you're in the least bit in doubt about what something means, ask them about everything. Only sign once you're fully satisfied you know what you're agreeing to. Bron Re: Building Contracts - Things to look out for 3Sep 21, 2011 4:58 pm Make sure that the written specification and the plan both agree on what you want, not just the plan. In case of something getting missed the specification has more legal authority than the plans. The Harder You Try - the Luckier You Get ! Web site http://www.anewhouse.com.au Informative, Amusing, and Opinionated Blog - Over 600 posts on all aspects of building a new house. Re: Building Contracts - Things to look out for 4Sep 21, 2011 8:13 pm From my own experience too check codes on contract actually match what's been selected! Can cause lots of issues! Eg: my kitchen handles were incorrect!!! Re: Building Contracts - Things to look out for 5Sep 21, 2011 8:54 pm The main things you want to look out for are the below: Duration of build (should not be longer than 9-10 months) Damages for builder being late (want to cover your rent) Provisional costs (if any make sure they are specific and not just refering back to schedule) Should be no more than 20% Prime cost items (make sure these are clear and known) Should be no more than 20% % markup for variations DEFINATELY check the maintainence specification to ensure you know what your covered for within the Maintenance period Ensure you have everything detailed to the letter in your specification - dont assume anything as you will find if its not there its not there problem... Hope this helps Cheers, Alpal Building PD Heathmont 40 BLOG: http://alpal-pd-heathmont40.blogspot.com/ Deposit paid 19/08/2011 Contract signing 3/10/2011 Site Start 10/11/2011 Slab 23/11/2011 Re: Building Contracts - Things to look out for 6Sep 22, 2011 8:50 am thanks for the tips The duration shouldnt be an issue as I am using a small project builder so he said it should take 16wks max (2 storey house) from council approval to handover. And the council approval has already been submitted to council from the town planner. I will take note of all the other things mentioned as well. I am a project manager so I am used to picking things up for multio million dollar oil & gas projects but I wasnt familiar with the residential construction stuff Thanks Ben Re: Building Contracts - Things to look out for 7Sep 22, 2011 9:05 am Alpal provides a good summary. I would also check that everythign you want is mentioned in the contract. If it's not mentioned in the contract, it won't happen. Demolition August 2009, Construction Started September 2009, Completed December 2010 Industry type domestic contracts are prepared by industry bodies for the benefit of the builders. This means that if you are the owner watch out. One of the points is… 0 3226 MBA and HIA both have sub contract agreements, check them out 2 7315 Depends what you're current inclusions are, but we're not including wardrobes and will just use second hand ones until we can save later on to get them built. Also have a… 3 11633 |