Browse Forums Building A New House 1 May 04, 2008 12:14 pm Hi All,
We recently received our Building Contract (we are in Melbourne). Aside from other issues that were causing us concern, the Contract stated that the Builder "reserves the right to change nominated suppliers and specification to items of similar quality". We wanted to amend this to say that the Builder "is not entitled to change nominated suppliers and specification without prior written authorisation from the owner." They would not accept this change. We spoke to someone who built with these builders some time back and he mentioned that he did not receive the same oven and the spa bath that were in the display house and in his contract. We could never understand how the builder could deviate from the contract. It would now appear that with a clause such as this, the builder would be free to make such changes. We would be interested to know if anyone else has had a similar clause included in their contract. Thanks in advance. Re: Building Contract Query 2May 04, 2008 6:04 pm basaad,
How about builder "may change nominated suppliers and specification to items of similar quality if item is no longer available". It also depends on why your builder wants this clause. If it's because the item is no longer available, then fair enough. Ideally, as you suggested, any change should be done in consulatation with the owner. If it's to show you a great house and then deliver something less then it's a pretty pooor clause. Why not ask the builder why they have this clasue and then accomodate that specific concern. As it stands it's too general and you could end up with anything. And I bet any change will be to a cheaper item. Cheers, Casa Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: Building Contract Query 3May 04, 2008 7:11 pm Warning: Soap Box
In non-domestic construction contracts I usually have the following to cover for substitutions, although written in contract speak - Same warranty on substitution as for specified product or material (wouldn't be too impressed if my 12 month warranty on an item suddenly became 6 months) - Waive claims for additional costs which may subsequently become apparent (that is, work out what the variation cost will be up front and don't come back asking for more money later) - Verify that proposed materials and products comply with applicable building codes and standards - Proposed substitution is equivalent or superior to that specified in quality, durability and serviceability, design, appearance, function, finish, performance, and of size and weight which will permit installation in spaces provided - In the event of credit change in the cost, the Superintendent (Owner) shall receive all benefit of the reduction in cost of the proposed substitution (yeah....good luck) - If Contractor neglects to place an order for item such failure or neglect shall not be considered as legitimate grounds for substitutions (sloppy management should not be an excuse for non performance) Generally substitutions are only allowed in case of: - Strikes - Supplier bankruptcy - Discontinuation of product - Proven shortage Also the Contractor seeks the approval from the Superintendent (Owner) for the substitution, not just change as they like without advice. Good luck getting these fair and reasonable clauses into a one side domestic building contract without legal advice. Never understood why there had to be a difference between domestic and non-domestic building contracts. Off soap box........ mmm....donuts Homer Simpson 1956- Links: Site Costs Ready Reckoner | H1 Addiction Medical Advice | Château TDL: The Backyard Re: Building Contract Query 5May 04, 2008 7:31 pm Casa2 When it comes to domestic building contracts, we're just bunnies in the woods. Builders are the wolves. And that's the pity because it doesn't need to be. I think Builda said it in a recent post owners and building companies should be equal partners in the contract....neither should be able to rip the other off (and I'm not trying to generalise that building companies are only in the business of ripping people off). In non-domestic construction if you have a dispute, and their is on overly one sided contract, you will receive a slapping if it goes to arbitration, irrespective of whether it is biased towards owner (Superintendent) or contractor. I've been in a situation in which I had poorly written a contract clause and my client did money on it.....they took advantage of an alternate meaning of a clause and when it went to arbitration the arbitrator took a dim view.....butt kicked and lesson learnt. Sorry basaad if this has takes your thread off course.....it's a topic I get a bit narky about.....can you tell..... mmm....donuts Homer Simpson 1956- Links: Site Costs Ready Reckoner | H1 Addiction Medical Advice | Château TDL: The Backyard There is no reason why building contract reconciliation cannot be done prior to handover, if the builder won't do it get someone to do it for you. Why would you pay for… 3 5014 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 12011 2 6315 |