Browse Forums Building A New House 1 Apr 20, 2015 5:51 pm G'day, I've had a Master Builders contract issued to me (for a brand new residential build in Vic) and we're lucky enough to review it prior to signing it. Clause 21 refers to 'PRIME COST ALLOWANCES FOR PRIME COST ITEMS'. We have 2 items listed. one for Floor and Wall tiles & another for Carpet. The builder has listed a price for each item in the 'Builders Supply Allowance Per Item' column, which we'll say is $30. In the 'Quantity of Components Or Materials' column, I have a quantity of '1' listed for each of the 2 items. Thus, the Prime Cost Allowance for each item totals to $30 per item or $60 for both. Now, professional advice tells me that this in incorrect and I tend to agree. I haven't had it explained to me as of yet and won't get a chance to hear from someone tonight, but from what I understand is that the builder is basically quoting $60 for Wall & Floor tiles and Carpet... which as both you and I know, just simply isn't any where near the several thousand to complete this task. In addition to this, the builder has a margin of 20%. Am I right in saying that come carpet and tiles, the builder can say - "Well hey, I only quoted $60 for the both, but it's really going to cost $9000 plus my 20% - so we'll call it $10,800 on top of your contract price". Do I have the right idea or am I way off track? Thank you! Re: Master Builders Contract - Assistance please 2Apr 20, 2015 5:56 pm I'm not sure, but I'd be checking with the builder. Maybe they mean something like you can select a category range of carpet up to $30p/m, and then you pay that x how many square metres you have to cover? I know with my builder I could pick any floor tile up to $35 in the builder's range. Sorry, can't help much more than that. Re: Master Builders Contract - Assistance please 3Apr 20, 2015 6:00 pm Surely that cost has to be per m2, but they should know the total area of tiles and carpet required, so cant see why they wouldnt put a total cost there. Definitely ask about it Dale - Building Newbie Proserpine, QLD Re: Master Builders Contract - Assistance please 4Apr 20, 2015 6:11 pm Hi wesky, I agree with the above. It surely must mean per square metre but you need this spelled out to avoid confusion. Otherwise you are right - a builder cannot list a cost for a prime cost item that is less than the reasonable cost of supplying the item. This is stated in the Domestic Building Contracts Act Sect 21 (1). Re: Master Builders Contract - Assistance please 5Apr 20, 2015 7:34 pm PC allowance is how much/m2 you can spend on say carpet without incurring extra cost. The quantity you don't have to worry about because it is in builders price. PS is contingent allowance when the price and quantity are not known and should not be used for items such as carpet. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Thank you so much. This has been very helpful. We definitely wish to settle and get these people out of our life. They are trying to charge us interest on late… 7 14266 Hi, Appreciate any recommendations for town planners or advisors who can help assist to assess and draft an objection to a neighbour’s development in Northern Beaches.… 0 3631 |