Browse Forums Building A New House 1 Jan 16, 2013 12:24 am Hey guys, We have signed the pre-agreement contract with a reputable builder to build our 2nd home last month. Then the shock came when we got the fixed price contract last week. They bumped up the final price by almost another $6,000. Can they do this? They even added another condition to the siteworks provisional sums. We are building in Piara Waters (WA) and they said some previous jobs in the area have come back with Engineers details greater than a D10 detail. If this is the case, it will be treated as a variation to the contract and the extra costs range from $4800-$16000 depending on the site report. The builder said the land is not titled so they still can't do the survey. I just felt like we have been taken for a ride. So what's the use of signing a fixed price contract when the final price isn't fixed at all?? I don't remember having this problem when we built our 1st house 3 years ago. If we decide to pull the pin now, I suppose we will lose the $2,000 deposit even if the details signed in the pre-agreement contract are different with the fixed price contract they have sent to us? Can someone please give us some advise on this case. Many thanks in advance. Re: Pre agreement contract and fixed price contract 2Jan 16, 2013 12:34 am We signed our ore contract and paid our deposit, after doing the site survey the builder discovered we would need a retaining wall along with the associated safety equipment which added $10,000 to our original provisional amounts. My understanding is the pre agreement is based on what they expect but it is possible it will change once site survey and soil testing comes back. I would be asking for details of what the extra costs are actually for. Also the contract isn't fixed as you will find prestart will add even more costs to the original contract price... Re: Pre agreement contract and fixed price contract 3Jan 16, 2013 1:18 am My understanding is that most contracts are fixed price but this doesn't include the siteworks unless you come to an agreement with the builder after specifically asking for it. this was my experience but not 100% sure if it is the norm. Thank you so much everyone. This all makes a lot of sense. I guess when you talk to a builder who butters up everything to look very polished, you get to start believing… 7 17511 So AFAIk the outcomes of the BAL ratings form part of a clause that allows them to pass these costs on to you. However the more relevant detail is how did it go from 19… 1 9142 Just to makea point about this, an approach that some people have found sucessful in negotiating these rises down, Is to provide some workings to the builder, specifying… 4 81667 |