Browse Forums Building A New House 1 Jul 06, 2016 11:07 am Dear all, I’m building my first home and have dealt with a builder who said that the site cost is fixed and they really respect the price that was given to me regardless the land condition, build time, etc. The land is yet to be titled and have got no access to do a soil test yet except that I have got the engineering and sub division documents from the developer. I was confident after the price was fixed and paid an initial deposit of $2000. However when I received the building contract there are clauses mentioned as below: • If required rock removal will be charged at a rate of cost plus 20% payable by the owner. • If, as a result of excavations for foundations, it becomes necessary to provide a foundation of a different type or size, than that specified in the plans and engineers specifications, then any additional expenses incurred by the builder in providing such different foundations shall become an additional to the contract price and be payable as specified in ‘Clause 16 – Variations’. This is not what I expected when they promised me that the price is really fixed and I’m wondering is this a normal scenario? Will the site cost be determine exactly if a soil test is done? And also can a soil test provide information such as if there are rocks that need to be removed? Appreciate your feedback and share your experience on this topic. Re: What can expect as fixed site cost at contract? 2Jul 06, 2016 4:12 pm I have a feeling this is a really common question. I think it depends on the builder, one builder gave us a 100% guarantee it would be fixed even if they hit rock. If there is a clause for variations they can vary it after they start digging - they did with our build apparently because there was tree roots and difficult conditions. I don't think a soil test can definitely determine if there are rocks because they only drill down in a few places. Re: What can expect as fixed site cost at contract? 4Jul 06, 2016 8:01 pm Capri33 This is not what I expected when they promised me that the price is really fixed and I’m wondering is this a normal scenario? Judging by all the complaints on H1 Yes this std practice... increasing costs. Capri33 Will the site cost be determine exactly if a soil test is done? The geotech soil test determines soil classification It is up to the structural engineer to specify footings, etc based on your designs, builder preferences,etc,etc You will then need top scrutinise what the builder is proposing Bare in mind they are not in the business of optimising/reducing designs & costs. Capri33 And also can a soil test provide information such as if there are rocks that need to be removed? The geotech engineer could have access to soil strata databases, drill holes or sample pits , etc,etc but sometimes they are missed, you can also dig a few holes yourself...my point is clients need to check for themselves and then ask the question of the builder before they hand over any monies Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: What can expect as fixed site cost at contract? 5Jul 07, 2016 1:07 pm sunrays Do you have an email from the builder promising fixed site costs? Yes they emailed me earlier mentioning the site cost is fixed. Currently I have asked them to clarify these clauses or remove them from the contract. Awaiting their reply yet... Re: What can expect as fixed site cost at contract? 7Aug 11, 2016 8:12 pm This happened to me too, confirmed fixed site costs for a year, but they were able to do the soil test before land title (and before I signed contracts), based on soil report they increased site costs by 6k and added a rock clause (i.e. you pay if they hit rock).. the whole reason I wanted fix site costs was to avoid having to pay more if they hit rock ;; but as I hadn't signed the contract then I had to pay the additional costs if I wanted to go ahead. Re: What can expect as fixed site cost at contract? 8Aug 12, 2016 6:28 am We have the rock clause too. I'm praying they won't hit any.. The rest of the costs are fixed but our engineering was done beforehand. Building with Simonds in S.A Re: What can expect as fixed site cost at contract? 9Aug 12, 2016 6:36 am We have a fixed price contract, and have class A soil, We know there is rock. We added fixed site costs to our quote and signed off on everything. When the contract came through there was a rock clause also, but I was reassured from the lady that there will be no additional charges. I got it in an email from her saying that we will not pay any extra charges. On our contract we had both Provisional sums and prime costs scratched out. We haven't started building yet as we are waiting for council approvals etc. I really hope they stick to their word! Re: What can expect as fixed site cost at contract? 10Aug 16, 2016 5:42 pm I can only speak in general terms here. If a builder was to fix their site costs including things like rock removal I would expect they would include an amount for this in their quote. While you get some amount of certainty about the costs before construction starts it also means you are paying for some rock removal whether you need it or not. I would much rather the situation described in the OP where they on-charge at cost plus 20%. That way you know you are only paying for what is required. Nobody does 'free' rock removal. It will need to be paid for somewhere along the way. 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 17591 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 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16556 |