Browse Forums Building A New House 1 Jan 16, 2014 8:39 am Hi Guys, I am in desperate need of some help regarding where we stand if we walk away from our builder (part of ABN group) after signing the preliminary works agreement and paying $3000 deposit. We are not asking for the deposit back as they have carried out work including a site survey and spent time designing a plan and costing the contract for us. Although they haven't as yet started working drawings. When we signed the preliminary works agreement we were told that after the final plans and contract price comes in if we are not happy we could walk away forfeiting our deposit, but not liable for any other costs. Now they have changed their tune and say we are liable for big $$$ in "additional sums to cover all their hours of work they have done". Has anyone had any experience with this or know what our rights are? Background- We signed the agreement approx 6 months ago and paid the deposit. Basically after they did the site survey (our block is on a slope) our house plan changed considerably to something we no longer like and site costs have jumped up another $20 000. We realise they couldn't predict this until they did the site survey and therefore are not wanting our $3000 deposit back as believe that they need to be compensated for the time they have spent on us. A few weeks before getting the final documents my huband called and spoke to the sales guy confirming if we changed our mind for any reason we could walk away no more to pay. After getting the final plan and contract we told the builder we weren't sure if we wanted to continue and he then said we would be up for a lot of money if we don't go ahead with the build because of all the hours they have spent on the house. In the agreement it does state if finance can not be obtained the "client agrees to pay any additional sums", But doesn't say anything about if you change your mind. We are totally stressed and not sure what to do next. Any advice would be greatly appreciated. Re: Can we walk away after signing preliminary works contrac 2Jan 16, 2014 8:47 am We signed a prelim agreement with a builder in April last year. At tthe signing there were things left off that were discussed, when I mentioned them - he did the whole "Ohhh you wanted that? Oh thats ok but its an extra xx $" and various other stuff that we had gone over a bout a billion times with him and he still couldnt get it right (or I think he could and just wanted to seal a deal quickly). We signed and he said he'd send out a variation sheet, it was ridiculous. Nothing was as discussed. So we never transferred the $2,200 prelim deposit. They never did any work bar the quote & pre-lim contract (which was a shambles) so we just left it. But we did sign all the documents. Never heard anything back. Thread: viewtopic.php?f=31&t=66299 Slab: 16/6/14 Frame: 4/7/14 Roof: 22/7/14 Lock Up: 20/8/14 Fixing: 26/8/14 PCI: 9/10/14 Handover: 20/10/14 Re: Can we walk away after signing preliminary works contrac 3Jan 16, 2014 9:26 am Thanks for the quick reply. Anyway sounds like you dodged a bullet with that builder. Unfortunately we are further along with the build, and they have carried out work for us. Re: Can we walk away after signing preliminary works contrac 4Jan 16, 2014 9:32 am The amount of extra work (if any) completed by the builder would be minimal. They'd have to explain what extra work was completed and then detail the costings if they were contemplating trying to charge you more. We're currently working with the same group. The site survey costs are only 1500 and we had these completed prior to signing a PWC. We paid a further 1500 and signed the PWC for working drawings to be completed. We're still waiting on these drawings and final site costings. So if you haven't even had working drawings completed, I really can't see how they will be able to charge you more. It sounds like a tactic to get you to proceed. Re: Can we walk away after signing preliminary works contrac 5Jan 16, 2014 9:36 am We did.. We sort of signed it, thinking "Oh it'll be ok" he'll get it fixed up. He fixed it up, but it was almost $30k more than we'd spoken about, all just dismissed till crunch time and like pulling teeth to get right. As soon as we walked out of the signing we said to each other "That didnt feel right". So we decided to walk away. If they've done the work, you may (as you mentioned) lose the deposit - but I have heard many stories (both on here and personally) of people walking away after signing pre-lims. Some lose a portion of their deposit, some lose it all and some get it all back - depending on what has been done. I have never heard of someone being forced to proceed. Thread: viewtopic.php?f=31&t=66299 Slab: 16/6/14 Frame: 4/7/14 Roof: 22/7/14 Lock Up: 20/8/14 Fixing: 26/8/14 PCI: 9/10/14 Handover: 20/10/14 Re: Can we walk away after signing preliminary works contrac 6Jan 16, 2014 10:17 am Thank D_rail. We think it might just be a tactic to scare us into staying to. Unfortunately the builder has all the power in this situation, they have probably been in this situation may times, but for us its all new. Its really hard to know what your rights are? Re: Can we walk away after signing preliminary works contrac 7Jan 16, 2014 10:27 am I agree I have heard stories of people losing their deposits too. As I said we are happy to pay that, as its a small amount when your spending $550 000 for our home ( house and land). Especially when we were told that we would't have any further costs, I can't see how they can say we now do? If it took so many "man hours" to make changes to one of their designs and have their estimator price up the contract, maybe the job is beyond their scope and better they don't build our home. Re: Can we walk away after signing preliminary works contrac 8Jan 16, 2014 1:11 pm Unfortunately Indio the builders do have a lot more experience than us. That said, forums like this are a great source of advice and help in navigating some of the common issues with the builder. We had 95% of the modifications to floor plan completed before we signed the PWC (at no cost). As we knew we were dealing with a problematic site, we proceeded and got the site survey completed to enable a more accurate costing on site works. We have since signed the PWC. That said we have a few further modifications we want to make prior to signing any final plans/contracts. I get the feeling we will simply be told to make these changes at pre-start. I honestly can't see why you wouldn't get back half of your 3k deposit. The work they've completed for you is no more than what was completed for us prior to signing a PWC. I'd call the salesman on his tactic and explain to him that you think you're due a credit from the deposit. Perhaps this will even the negotiation to a point where the worse case scenario is that you lose all of your deposit. If you already own the land, I would also demand they release the access to your site report and soil classification. This means you will then be able to transfer this information to another builder and receive a credit on these costs..... Re: Can we walk away after signing preliminary works contrac 9Jan 16, 2014 3:36 pm I agree with D_Rail. I'm also with the same building group and from what understand, worse case scenario is you won't get the $3000 back but if you haven't signed the HIA contract I don't believe they have any right to pursue further costs from you. The works they have done is exactly what the $1500 is for (that's why I think a credit should be due as above). Maybe contact Consumer Affairs or the building commission and see what they say. I have heard of this scare tactic a lot! Build Permit-17/12/13 Earthworks-13/1/14 Slab-30/1/14 Frame-10/2/14 Lock Up-7/3/14 Fixing Stage Complete-20/3/14 New Home Presentation-6/5/14 Moved in 17/5/14! Blog: http://dandesbuild.blogspot.com.au Re: Can we walk away after signing preliminary works contrac 11Jan 16, 2014 5:04 pm Check your documentation thoroughly. Our tender document very clearly says builder has a right to charge for work done to date (re before building starts). We're a bit anxious about the open ended nature of that particular clause... I wonder if anyone has been "bitten"? Thinking about building Rawson's Huntley 27 I can help you with all that, you can PM me with details if you wish 3 5934 Hi All, I just wanted to close this topic out with an update. 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