Browse Forums Building A New House 1 Aug 01, 2013 11:36 am Hi everyone, Looking for some thought from people who have gone through the building process regarding PPA's. We have paid our builder $2,000 to prepare plans, get the site survey and soil survey done. We have now been presented with a PPA (we knew it was coming), for which they have asked us to sign it, and to add hand written clause along the lines of "Subject to final plans and costing". The contract includes various items. Of concern are: 1. A total sum "Preparation of Plans Agreement Amount" (build price + provisional site works). 2. Terms and conditions, including (simplified below): a) structural changes are not allowed after signing of the PPA (apparently over-ridden by hand written clause). b) The PPA fee is non-refundable (fine). c) We agree to reimburse the cost for site survey (paid), soil survey (paid), prepare and submit drawings to Local Authorities, obtain Home Indemnity Insurance and obtain Structural Engineers structural design. There is a bit of pressure from them to sign, as they will give us a a fully ducted reverse cycle Samsung A/C unit. We have chosen them as our builder, so there is no worries really with that, but I want to make sure we are protected by including hand written clauses in a contract? Also, I see no reason to submit drawings to Local Authorities, obtain Home Indemnity Insurance and obtain Structural Engineers structural design until we agree on the final design and costing - yes? Partly thinking that if they take the A/C away, there is a higher chance of there being as issue later, ie they have taken something away from us and we might be able to find a better deal somewhere else. Tried calling the Building Commission to see what they thought, but they told me to seek legal advise. Thanks for anyone's thoughts! Re: Help Please! - Preparation of Plans Agreement 2Aug 01, 2013 3:32 pm Hi Alex,
Is there another fee/deposit with the PPA, or was the $2000 it? If you are including a clause that will allow you to have structural changes after the PPA, make sure you include that no fees will be included (ie variation fees, drawing fees, engineering fees etc) Our sales consultant also told us about the drawings and insurance, but they actually aren't submitted until we sign the building contract and have our final plans I would also suggest to include as many upgraded prices for taps, tiles, doors etc with the PPA instead of waiting for pre-start Re: Help Please! - Preparation of Plans Agreement 3Aug 01, 2013 4:49 pm Hi Broc, thanks for the response. We are going with Broadway Homes. The $2,000 is the fee for the PPA, but we paid it initially so we could progress the plans past the first revision. Good to know about when the insurance and drawings submission are done, it was as expected, but I am unsure why it would be in the PPA. This is all new to me though, so who knows. Its just a bit daunting when you first need to sign something. Thanks for the suggestion regarding pre-start, but the PPA doesn't seem to allow for this? All of the costs are TBC and there is little mention of pre-start. In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 4821 Hi All, We signed a prelim agreement last year (May 2022) and paid deposit to a builder. However, we didn't go ahead with them and never signed a contract. We ended going… 0 2309 You need to respond to the Builder within 10 business day advising of your rejection of claim as per SoPA on a payment Schedule, Do not miss this deadline. 3 7287 |