Browse Forums Building A New House 1 May 12, 2015 8:14 am I'm hoping the homeone crowd can add a little clarity to our situation. I hope this isn't a stupid question! We have put our 2k deposit down to book our house and land package in Feb 2015 and have just been notified our plans and HIA contract are ready to go for signing this weekend. We have made multiple changes and have been issued a few revised tenders up until this point. What I want to know is, once we sign this weekend, if we want additional changes made - will we be made to pay penalties? Or will only changes to the structure incur penalties? I mentioned to the builder that we still have plenty of things we would like to change, he said changes are fine up until the point he puts the orders in and most are handled when we go for our colour appointments etc. The land will not register until May 2016 so we have plenty of time to make changes. We want to add heaps of things like heat lamps to bathrooms, tap to fridge, widen fridge space, led lighting to kitchen cabinets, outdoor power points, position of AC unit etc etc What are the key things to have covered prior to signing the contract? Is this where we bring in the page 32 list of things not to forget? Sorry - first home - exciting and nerve wracking at the same time! Thanks all! Building with Fairmont NSW - Carmel 23 Emerald Hills NSW Build Contract signed 23/05 Re: Pre-Contract Check 2May 12, 2015 8:19 am Depending on the change you may be up for a payment if you change things after contract is signed. They may have done work (eg soil tests) - or redone the plans (to incorporate your ideas) etc. You can't expect them to cover you for possible changes you might make - after they have done work. Even electrical changes can cost - if they involved plan changes and extra inclusions. Re: Pre-Contract Check 3May 12, 2015 8:22 am Saint Mike Depending on the change you may be up for a payment if you change things after contract is signed. They may have done work (eg soil tests) - or redone the plans (to incorporate your ideas) etc. You can't expect them to cover you for possible changes you might make - after they have done work. Even electrical changes can cost - if they involved plan changes and extra inclusions. Wow, so a lot of work to be done before this weekend! So basically, get the tender as complete as possible with as many changes costed and included. Building with Fairmont NSW - Carmel 23 Emerald Hills NSW Build Contract signed 23/05 Re: Pre-Contract Check 4May 12, 2015 8:43 am There are two different methods of including a lot of the bits and pieces. This link describes the process where everything is selected before contract http://www.anewhouse.com.au/2012/02/after-the-deposit/ With this method every change after the contract is a variation with an additional admin charge. The other way is that a contract is signed for the base house and then there is a prestart selection where you make your choices. You only pay variation admin charges if you change following the prestart meeting. 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: Pre-Contract Check 5May 12, 2015 9:45 am Your builder may or may not require you to pay variation fees. It will depend on the builder (and the variation). We had many variations after contract and before going to site, with no fees for any of them. After we went to site, if we wanted to make variations at that point the standard fee was $500 each. Luckily we haven't had to pay that for anything, and the one thing we did decide to change they just charged us a nominal fee of $50 (it was just a change of paint colour for a post). The other thing to consider is your finance - if the changes you want to make are not in your contract, your bank may not be happy about adjusting your finance later for your variations. We tried to get as much locked in as possible before contract signing because we knew that anything we did afterwards we'd have to pay out of our own pocket. The key things you want to get in the contract are major structural changes, because 1) they cost the most and 2) your bank will value the property based on the plans. Small changes to colours etc might not cost too much anyway and aren't going to affect the value of the home. If you really haven't locked in all your decisions, you could ask to put in some provisional sums for electrical variations, colour variations, etc. That way you have the amount included in the contract for finance, but you can finalise the details later. Good luck! Jen (& Dave) Plantation Bronte, Ormeau Ridge, Gold Coast QLD 12/03/2015 - Commencement... 26/08/2015 - Handover! viewtopic.php?f=31&t=76446 Re: Pre-Contract Check 7May 12, 2015 9:50 am Definitely a question for your builder. I'm lucky that I am allowed to make changes without charge to my build as I go, as long as they aren't structural and within reason. My builder would charge me minimum of $300 variation if I decided to move a wall or add a doorway for example. Re: Pre-Contract Check 8May 12, 2015 11:41 am ShannaLK Definitely a question for your builder. I'm lucky that I am allowed to make changes without charge to my build as I go, as long as they aren't structural and within reason. My builder would charge me minimum of $300 variation if I decided to move a wall or add a doorway for example. Sounds like the arrangement my builder was alluding to. I might try to get everything included that I can prior to signing and then if there are any small additions later, negotiate with the builder. Any major variations look like they will cost me $495 per HIA contract. Building with Fairmont NSW - Carmel 23 Emerald Hills NSW Build Contract signed 23/05 The worst thing you can do is sign a building contract without a pre contract review. Over the years many people have come to me with disputes where they just signed… 0 8351 i would suggest nothing is unreasonable for PCI. we did all sorts, including checking the hot water, checking all the GPO's had power, testing that the showers were… 9 98695 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16568 |