Browse Forums Building A New House 1 Dec 20, 2014 9:36 am We paid $1500 to a building company and had a concept drafted (custom) and tender prepared. We paid separately for soil etc. We decided not to proceed as it wasn't quite right. I don't recall signing an agreement about the fee. As the builder retains copyright should some of this be refunded? Re: Refund of fee 2Dec 20, 2014 10:26 am Usually you will enter a preliminary agreement where the builder prepares plans ,contract documents,survey of the block and engineers details. This is usually known as an agreement for preparation of plans and will normally state that the deposit is non refundable if a contract is not entered into and and will also state that the design remains the property of the builder. If you cancelled the agreement before all the works were arranged you can sometimes be entitled to a part refund even if the agreement says you can't. For instance if they did not pay for a survey of the block then they can't justify keeping that portion of the money. [Edit: Advertising links removed by moderator] Re: Refund of fee 3Dec 20, 2014 11:39 am Thanks. Yes that is my usual understanding and a prelim agreement is prepared. This is a smaller builder but reputable in our area (mid size). It is not a project company where you pay a flat fee for soil, survey, tender where they retain the tests. Upon their advice we paid for engineers soil survey etc through separate engineering and aurvey firms (3k appx) and we own those. The $1500 was for them to prepare a concept plan and tender (not working drawings) and we decided not to proceed with the tender. They retain copyright of the concept. Re: Refund of fee 5Dec 20, 2014 8:17 pm Often they will allow you to pay a license fee for the design but sometimes the cost is unrealistic. [Edit: Advertising links removed by moderator] Re: Refund of fee 6Dec 21, 2014 6:08 am building inspector Often they will allow you to pay a license fee for the design but sometimes the cost is unrealistic. [Edit: Advertising links removed by moderator] Yes and I don't really want it! Our new design is completely different they couldn't get it quite right. I will ask for the refund and see what happens. In any case they should not have taken anything without me signing a prelim agreement, normally I am a stickler but I wasn't as thought we would proceed with them and it would just come off the build. Re: Refund of fee 7Dec 21, 2014 6:10 am seano If the $1500 was for them to prepare a concept plan and tender, and they have provided both of those, then I don't think you're entitled to anything back. I do understand as there is work involved in that, but even if they retain ownership of the concept plan and can later use it in their course of business? Look it's not a lot of money either way but I am just curious. The testing work was not part of that fee or work and we paid separately through an engineering firm so we retained ownership of our geotech and detail survey. Re: Refund of fee 8Dec 21, 2014 7:44 am I'm not saying I entirely agree with it, but they've done up a custom plan for you, which had you not come along they never would have done. Chances are the never will use it because all the engineering and working drawings would not have been done? We were in a slightly different position - the builders we were going to use passed my drawing onto the drafting company they use who did them up professionally, we had tender and everything, including selections. After a low valuation and stumbling across a house for sale we loved, we decided not to build. The builders refused to take a cent off us. We just paid the drafting firms invoice directly. The builders them self refused to accept a cent for their time and work they'd done. Had we built with them, the first time a single dollar changes hands is after slab is done. So I paid them in some slabs of beer. We retained the copyright of plans, they kept a copy though as they liked it, on the agreement that they'll pay us for the plans if someone wants to build our design - only a verbal but I have no reason to not believe, besides, we'll use them to build down the track thanks to that level of service (and they build amazing homes in terms of quality and design). Its just goes to show all builders operate differently. In your situation, I don't think you're 'entitled' to anything back, even without a written agreement of you pay 1500 for tender and plans. But if they are interested in good service, they'd only keep a reasonable amount for their time, and the cost of work done with the plans. By doing that you are all on good terms and you'd consider using them again, as it is now they may keep your money, not have managed to come up with a good design, and lacked great customer service which may cost THEM more than the $1500 down the track. Re: Refund of fee 9Dec 21, 2014 7:56 am I doubt you'll get anything back. You went ahead and had them do the work. Re: Refund of fee 10Dec 21, 2014 8:12 am In 2010 we paid a small custom builder $1500 as a deposit on a prospective build and gave them a sketch of a floorplan to draw up. They drew up a very basic floorplan with no dimensions and one elevation. It then became obvious that a double story was being built next door to us and we had to dispense with the original design if we wanted to get any sunlight. We ended up getting a building designer to do the drawings for us and tried to tender to this builder but were told they didn't have the resources to build the home. We asked them if any of the original $1500 was refundable and didn't even receive a reply. I would be surprised if, given the amount of work your builder has done, they will refund your money but all you can do is try. Re: Refund of fee 11Dec 21, 2014 10:30 am seano I'm not saying I entirely agree with it, but they've done up a custom plan for you, which had you not come along they never would have done. Chances are the never will use it because all the engineering and working drawings would not have been done? We were in a slightly different position - the builders we were going to use passed my drawing onto the drafting company they use who did them up professionally, we had tender and everything, including selections. After a low valuation and stumbling across a house for sale we loved, we decided not to build. The builders refused to take a cent off us. We just paid the drafting firms invoice directly. The builders them self refused to accept a cent for their time and work they'd done. Had we built with them, the first time a single dollar changes hands is after slab is done. So I paid them in some slabs of beer. We retained the copyright of plans, they kept a copy though as they liked it, on the agreement that they'll pay us for the plans if someone wants to build our design - only a verbal but I have no reason to not believe, besides, we'll use them to build down the track thanks to that level of service (and they build amazing homes in terms of quality and design). Its just goes to show all builders operate differently. In your situation, I don't think you're 'entitled' to anything back, even without a written agreement of you pay 1500 for tender and plans. But if they are interested in good service, they'd only keep a reasonable amount for their time, and the cost of work done with the plans. By doing that you are all on good terms and you'd consider using them again, as it is now they may keep your money, not have managed to come up with a good design, and lacked great customer service which may cost THEM more than the $1500 down the track. Yes I don't necessarily believe I am entitled, except for the fact they significantly underestimated some costs (with soil and geotechnical already) prior to tender and the tender was in many cases inaccurate. As such I think a high level of service may have them consider refunding it. |