Browse Forums Building A New House 1 Sep 26, 2015 11:07 am So we are building our first home, very exciting. We are now up to the contract stage and so far I have only gone through the colour and variation form - which I found about 10 mistakes, good thing I read and look up everything. Tonight after work I will start reading the actual contract part. What I wanted to ask is what should I be looking out for in the contract, what standards are good to change and what I need to fix that people have learnt from past builds and contracts. Thanks everyone for your help. Shellby ~Shellby~ GJ Bridgewater 203 11/3/2016 - Site Work Started 29/9/2016 - Handover 142 Work Days 6 Work Days Over https://forum.homeone.com.au/viewtopic.php?f=31&t=80174 Re: Building Contract 2Sep 26, 2015 12:59 pm If it's a standard HIA contract you might find your builder won't change diddly squat as its the common contract for protecting both parties. Good luck with your review. If you're really concerned about what to look for is suggest a legal review by a lawyer who specializes in building contracts for peace of mind. Re: Building Contract 3Sep 28, 2015 12:39 am Hi shelby, Chances are it'll be a HIA contract like Beazley77 said. If it is, you should be pretty right. I'm a builder and they are the ones I use. Just make sure you are aware of any responsibilities that you might have or things you might have to get connected yourself eg. Water, gas, phone etc Most builders include this, but some don't. Also, check that the contract is front end heavy. That is to say, make sure your progress payments are in line with the work to be done. You don't want $60,000 worth of work to be done with only a payment of $20,000 left. Sent from my Galaxy S6 using Taptalk Re: Building Contract 4Sep 28, 2015 7:58 am Hi Shellby Front loading Costs & excessive price increases also occurs during site works (PS) Have you site works properly scrutinized and explained to you. Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Building Contract 5Sep 28, 2015 11:27 am Thanks, Its a MBA contract, but then I also have specification changes to contract part and of course variation/colour form. I have been over every single variation/colour, found about 3 mistakes and have emailed to have that changed. I am half way though the changes one now and I'm allowed to also add my own if I feel for us to all discuss before signing etc. This is most like where I what to make sure I'm paying attention to make sure its not all builder protected and not owner protected - like a property sale contract I guess. I did my own convencying also, so fairly cluey on not worrying about getting a solicator involved - but just wanted other people's experinces on things, like what they wished they had changed, what theye didn't change and should have. I mean I have read on some posts here about checking rain days and making sure it only is affecting build time until lock up as after that it shouldn't be a issue. Another people said check build time and how they put days - as someone had a contract state something like 250 'business' days meaning basically it was nearly a year. So things like that. ~Shellby~ GJ Bridgewater 203 11/3/2016 - Site Work Started 29/9/2016 - Handover 142 Work Days 6 Work Days Over https://forum.homeone.com.au/viewtopic.php?f=31&t=80174 Re: Building Contract 6Sep 28, 2015 4:42 pm H Shellby, Regardless if it is a HIA or MBA contract, there are some important notes to look for. In the MBA contract, before signing clause 15.4, ensure clauses such as 17a are kept to a minimum. Clause 27 refers to the contracts act 1995 which allows cost escalations resulting from various factors. Most builders will include method "B" for progress payments. Essentially, this means the builder can submit a progress payment without technically reaching that stage. Also as stated in other posts, front loading costs is another point to look at. These are just some of many points which need to be checked. Our advice is dont be rushed into signing over a 3hr contract signing appointment. You should be given the time to read, understand and have it reviewed prior if you feel the need to do so, after all, it is a contract that both parties must abide by. feel free to visit our website. Regards, CR Partners Re: Building Contract 7Sep 28, 2015 7:31 pm Hi Shelby, StructuralBIMGuy is right on the site costs. We are first home buyers and got lucky, builder tried to slug us another 30k. Thankfully we pulled out (with full refund) and were much wiser during the second round of contracts and tenders. Try and get a fixed price or detailed itemised tender so you don't have any hidden surprises. You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16693 I've decided, after a period of confusion (my building broker told me it's probably not worth it to use a lawyer, but others have said it is a must) that I definitely will… 7 27981 |