Browse Forums Building A New House 1 Feb 18, 2013 1:11 pm Hi all, We just had our tender appointment with Henley last Friday. However there is 1 thing that concerns me. Since our land won't title until late April, Henley couldnt conduct a soil test and therefore we have "provisional items" related to site costs with an additional provisional item for 25% builders margin. For example, the tender reads like: - provisional foundation and footing costs: include footing adjustment,earthwork,rock removal,...... -$9600 provisional- - builders margin for provisional foundation and footing costs (25%) -$2400 provisional- Also, since we are building close to easement, there is "outstanding item" in the tender that says: "Additional footing/foundation that might be required to overcome angle of repose due to sewer/stormwater/service pipe in the easement. Additional cost resulting from this will be charged to the owner by variation, when known." -Noted- Now, if we sign the contract, we will have those provisional items in our contract (the upshot of this is that we can build straight away after our land title because all paperwork has been done). Otherwise we wait for our land to title, to get a fixed price contract - but this means we will need some time to sort out the paperwork then start building. Also, the conditional approval from the bank says "conditional to a FIXED PRICE CONTRACT". Does that mean if I sign the contract now, the bank wont approve the loan anyway? Anyone has any recommendation? very much appreciated! thanks! Re: Untitled land issue - site cost 2Feb 18, 2013 2:40 pm Hi mtz08, I am in a similar situation although the time between contract and the land being titled is a few months longer than your wait. We will go to tender like you have done, but we will be delaying the signing of the contract until we get the land titled and get fixed price site costs from the builder. I don't like the idea of singing a contract to build a house on land that isn't ours yet and then on top of that having the possibility of site costs blowing out when we have committed. There is also the possibility of a delay in the land titles etc. Personally, I would delay the signing of the contract until your land titles. I think having the time up your sleeve to sort out paperwork and start building is a better situation than being locked into a contract with items to still be confirmed. That way, you can pass a complete fixed price contract to your bank too! Good luck Re: Untitled land issue - site cost 3Feb 18, 2013 6:17 pm Hi ftdt7882, Thanks for your reply. I think we would also postpone the contract. It does feel uncomfortable to sign a contract with outstanding/provisional items. Good luck with your build! Hope your land title on time. Yeah I don't know why I came to a forum. Place is full of wierdos/pedos thought internet may help but I suppose I'll try my luck with someone in person. Cheers. I tried… 0 6444 We were lucky in that our old house was so small (86 square metres) compared to the new house, they were able to take enough readings around the old backyard house before… 8 37143 Thanks for the insight! My plot is a new development so hopefully I won't have too much problem during build as everyone should be roughly building together. I also… 2 3373 |