Browse Forums Building A New House 1 Nov 17, 2013 8:12 am Hi All, We received our house contract yesterday after accepting a tender for which we had many issues getting finalised. Overall, it is supposed to be fixed price, but the very first page of the contract states (word for word)... "The contract price may vary under this contract. The reasons for variations include: Essential Matters Planning and Building Approvals Commencing the Works Surveying Site Consultancy Increases in Tax, Charges or Levies after the contract is signed Variations on Building Works Adjustment to prime cost items and provisional sum items Retaining Note: The builder cannot demand or receive any of the contract price (including deposit) until warranty insurance is in force and the owner is proved with a certificate of insurance" Also the progress payments are split up as follows... Deposit 5% Slab 22.5% Frame 22.5% Roof 22.5% Lockup 22.5% Practical Completion 5% Is this the norm? Thoughts, ideas & experiences much appreciated. Re: Contracts.. Fixed price not so fixed? 3Nov 17, 2013 8:42 am Ours is 1. Deposit 5% 2. Slab. 10% 3. Plate height 25% 4. Roof cover 20% 5. Lock up.20% 6. Completion 20% Re: Contracts.. Fixed price not so fixed? 4Nov 17, 2013 8:43 am Seems no use for signing contracts, mostly contracts favour only builders Mine contracts was fixed except rock excavation. I cant finding anything in my contracts regarding you have mentioned Essential Matters Planning and Building Approvals Commencing the Works Surveying Site Consultancy Increases in Tax, Charges or Levies after the contract is signed Variations on Building Works Adjustment to prime cost items and provisional sum items Retaining Your progressive payments should be normal, only last payments looks very low 95% of payments paid to builder before PCI stage, if you experienced any big issue with your builder, cant hold much money Atleast if you have 15 to 20% of last payment, you can demand them. I really cant understand your note mentioned about Insurence Re: Contracts.. Fixed price not so fixed? 5Nov 17, 2013 9:33 am Marmalade Hi All, Note: The builder cannot demand or receive any of the contract price (including deposit) until warranty insurance is in force and the owner is proved with a certificate of insurance"[/i] This doesn't cost you any extra but is essential to cover your costs if a builder goes broke 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: Contracts.. Fixed price not so fixed? 7Nov 17, 2013 3:42 pm Our contract says: "The contract price may be subject to change as a direct consequence of any written law of the State or Commonwealth and may be imposed under any such law after the date of the contract", which is also repeated and expanded on in the HIA section of the contract. The clause in your contract is a bit odd, specifically a reason for variation being "Commencing the Works" - what is that all about? "Essential Matters" also seems broad - who defines "essential"? Our final payment is about 9%. I would ask your builder - we sent off 2.5 pages of questions on our contract, and managed to get a few of the builder specific items changed (ie not clauses in the HIA contract). Generally the contract is very much in the builders favour, and its quite annoying. I guess there is always legal advice. Re: Contracts.. Fixed price not so fixed? 8Nov 18, 2013 7:35 am Thanks Guys, One rather worrying point is they've stated the build time is 34 weeks! This is after being told through the tender process that it would be 20, maybe 24. This means the build will be well into winter with possible bad weather delays. Seems the problems never end with these guys Will ask questions and update in case anyone is wondering whether these things are negotiable. Re: Contracts.. Fixed price not so fixed? 9Nov 18, 2013 8:17 am all castle homes seems terrible Went to couple of times earlier in Thornton display centre. They advised me they build quicker. Re: Contracts.. Fixed price not so fixed? 10Nov 18, 2013 3:37 pm Our contract has a period of 320 working days to complete the works, which is 64 weeks excluding public holidays. Real build time we are told will be 8-10 months (~40 weeks). I am not so worried about this, since it is in the builders interest to finish the build as soon as possible. What you don't want to do is make them try finish early or on time, compromising build quality. I guess your builder may have been a trying to get your business, but really, if builder X says they can build a similar home as builder Y is less time you'd have to wonder why? Re: Contracts.. Fixed price not so fixed? 11Nov 18, 2013 4:02 pm Marmalade Thanks Guys, One rather worrying point is they've stated the build time is 34 weeks! This is after being told through the tender process that it would be 20, maybe 24. This means the build will be well into winter with possible bad weather delays. Seems the problems never end with these guys Will ask questions and update in case anyone is wondering whether these things are negotiable. You worry too much. The more you worry the more you find things you don't like. I can see you having the same issues no matter which builder you go with. You need to start enjoying the home you are about to build otherwise you will not be happy when you move in later. Re: Contracts.. Fixed price not so fixed? 12Nov 18, 2013 9:08 pm Marmalade [i] "The contract price may vary under this contract. The reasons for variations include: This is vague. This sentence essentially states that they can vary the price for ANY reason, some of which could include the following: Marmalade Essential Matters Planning and Building Approvals Commencing the Works Surveying Site Consultancy Increases in Tax, Charges or Levies after the contract is signed Variations on Building Works Adjustment to prime cost items and provisional sum items Retaining Some of those reasons are so vague as to be of no value whatsoever to be specified in a building contract. "Commencing the works". Really? I would have some of those struck out of the contract. Once a contract is signed, if they wish to issue you with a variation to the contract, you are within your rights to challenge that variation. Any variation should be specific and requires you to agree to the variation - and sign it - before the contract sum can be amended. If they issue you with something vague like a $3000 variation for "essential matters" then I'd be refusing to sign it and requesting an explanation of what that variation was for and why that cost was not in the initial contract sum agreed upon. Know your rights. Don't sign a contract you don't understand. Get it looked over by a solicitor if you don't understand it. Agreeing to vague open ended contracts that offer you NO protection should be avoided. Completed a knock down and rebuild in northern Melbourne. Handover completed 27/09/2013 and now moved in. Re: Contracts.. Fixed price not so fixed? 13Nov 19, 2013 7:14 am Bluesuede Marmalade [i] "The contract price may vary under this contract. The reasons for variations include: This is vague. This sentence essentially states that they can vary the price for ANY reason, some of which could include the following: Marmalade Essential Matters Planning and Building Approvals Commencing the Works Surveying Site Consultancy Increases in Tax, Charges or Levies after the contract is signed Variations on Building Works Adjustment to prime cost items and provisional sum items Retaining Some of those reasons are so vague as to be of no value whatsoever to be specified in a building contract. "Commencing the works". Really? I would have some of those struck out of the contract. Once a contract is signed, if they wish to issue you with a variation to the contract, you are within your rights to challenge that variation. Any variation should be specific and requires you to agree to the variation - and sign it - before the contract sum can be amended. If they issue you with something vague like a $3000 variation for "essential matters" then I'd be refusing to sign it and requesting an explanation of what that variation was for and why that cost was not in the initial contract sum agreed upon. Know your rights. Don't sign a contract you don't understand. Get it looked over by a solicitor if you don't understand it. Agreeing to vague open ended contracts that offer you NO protection should be avoided. I second everything Bluesuede has said here. Have a building solicitor look over the contract or ask the advice of somebody who does contract reviews like BuildingExpert. But the terms here are far too vague and open to interpretation. Re: Contracts.. Fixed price not so fixed? 14Nov 19, 2013 7:43 am Great post BlueSuede! I will add a clause stating that variations are to be stated in writing, describing the reason(s) behind them, proof of costs (quotes/receipts etc) and then signed both by the initiator of the variation and the site manager. There was no mention of damage to kerb/pathways.. who's responsibilty is this? How is start date determined? There is only a statement saying 20 days once all approvals have been obtained (no mention of time taken to submit it for approval however). We looked at all the builders here Cameron32, the primary reason we went with AC was the continual spruiking of quick build times and apparent value for money. And to be fair there are professional staff there who are doing their best to help the customer but are undermined in many ways. Re: Contracts.. Fixed price not so fixed? 15Nov 19, 2013 8:10 am 34 weeks build time, it's really too long Re: Contracts.. Fixed price not so fixed? 16Nov 21, 2013 8:21 am We have negotiated the build time to 30, still not entirely happy about it but can easily spend more weeks fighting for further reduction.. so.. meh. Is a final occupation certificate a necessity? Still awaiting for anyones experiences with contractor incurred damages to kerbs/pathways (or any other third party property) and actual start dates once contracts are done... anyone? Should there be a specific clause stating that you can use your own inspectors if necessary and they will be bound by their reports? Re: Contracts.. Fixed price not so fixed? 17Nov 21, 2013 8:40 am Marmalade Is a final occupation certificate a necessity? Final certificate of occupancy is absolutely necessary. It's the document which allows you (or anyone) to live in the dwelling. Without it, you're not allowed. Re: Contracts.. Fixed price not so fixed? 18Nov 21, 2013 8:58 am TempestSkye Marmalade Is a final occupation certificate a necessity? Final certificate of occupancy is absolutely necessary. It's the document which allows you (or anyone) to live in the dwelling. Without it, you're not allowed. You are rite, before that can get interm certificate and Move in to the house. Once did the driveway, flooring and landscaping then apply occupational certificate. 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 17590 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 9162 My door tends to rub against the frame during winter and I'm looking to fix it so it closes smoothly. Looking online on Youtube I'm seeing methods to fix the alignment and… 0 692 |